Burberry has returned to profitability, reporting an operating profit of £54 million for the first half of its financial year after an £18 million loss in the same period a year earlier.

The British luxury fashion house said on Thursday 12 November that revenue rose 6% year on year to £1.10 billion for the 26 weeks ended 26 September 2026. Adjusted operating profit reached £62 million, beating the average analyst estimate of £44 million, and profit after tax was £6 million, reversing a net loss of £27 million a year earlier. Diluted earnings per share came in at 1.8 pence, compared with a loss per share of 7.1 pence in the comparative period.

Sales beat expectations

Comparable retail sales grew 4% in the second quarter, ahead of average analyst expectations of 3%, according to a company-compiled poll. Growth in the United States and China helped offset weakness in the Europe and Middle East region, while e-commerce revenue grew in the mid-teens. Gross margin improved to 68.3%, reflecting higher full-price sales and a one-off supply chain rebate.

Burberry's return to growth stands in contrast with persistently falling sales at larger luxury groups such as LVMH and Kering, and its shares rose more than 6% in early trading in London on Thursday.

Outlook for the rest of the year

Looking ahead, Burberry expects retail space to remain broadly stable and wholesale revenue to grow between 10% and 12% at constant exchange rates for the full year. The group also confirmed a leadership change, with Gerry Murphy retiring as chair and William Jackson succeeding him from 12 November. Reuters reported the results, and FashionUnited set out the half-year figures.