Is Burberry profitable in 2026?

Yes, Burberry returned to profit in FY2025/26 (year to 28 March 2026): adjusted operating profit rebounded to £160m from £26m, and statutory operating profit turned positive at £115m, reversing the prior year's £66m net loss.

Is Burberry cutting jobs?

Yes. In May 2025 Burberry announced plans to cut up to 1,700 roles, about 18 to 20 percent of its global workforce, by FY2027 as part of a £60m incremental savings drive; Revelio Labs estimated headcount at 8,688 by December 2025.

Burberry is a public company listed on the London Stock Exchange under ticker BRBY, with no controlling parent. Norges Bank Investment Management raised its stake to 4.00 percent of voting rights as of 20 July 2026, one of its largest disclosed institutional holders.

Is Burberry's turnaround working?

Comparable store sales grew 2 percent in FY2025/26 after four straight quarters of growth, and Q1 FY2027 retail revenue rose 5 percent to £455m (13 weeks to 27 June 2026), with Americas up 12 percent and China up 9 percent, though shares still trade well below their 2,656p peak.

Who is Burberry's biggest competitor?

Analysts compared Burberry's Q4 FY2025/26 margin beat directly to rival outerwear maker Moncler's strong finish in May 2026, while Ralph Lauren climbed five spots with 24 percent higher consumer search demand in the Lyst Index Q4 2025, both squeezing Burberry's heritage categories.

Is it safe to take a job at Burberry right now?

It is a mixed picture: Burberry cut up to 1,700 roles (about 18-20 percent of staff) through FY2027 for £100m in savings, but the company also rejoined the FTSE 100 in September 2025 and delivered four consecutive quarters of comparable sales growth into mid 2026.

Consumer brands · United Kingdom

Burberry Group

burberryplc.com ↗

British luxury house known for trench coats, scarves, and heritage outerwear.

Protection under test

Assessed 23 July 2026 · Evidence as of 23 July 2026

Something worth protecting exists and is being tested right now.

On the recordSince 23 July 2026 · Checkable from November 2026 · Every call on the record Checkpoint: H1 FY2027 interim results and Chair Gerry Murphy's retirement

The call

Burberry has stopped the bleeding and strung together four quarters of growth, but Moncler and Ralph Lauren are still eating into the heritage-outerwear space it needs back.

Burberry makes luxury clothes, handbags, and scarves, especially its famous trench coats. It is hard to copy because of its long history and famous designs, but rivals like Moncler (for winter jackets) and Ralph Lauren (for classic style) are stealing customers. The key question is whether the new leadership can keep sales growing over the next few months, because the last turnaround plan failed expensively and early signs of recovery could just be temporary.

Why

AI pressure: None apparent. Luxury buying stays relationship and craft driven; AI tools help Burberry personalize marketing but do not replace the product. Could AI do the core job? Unlikely.

Bigger players: Moncler and Ralph Lauren. Moncler owns outerwear status and Ralph Lauren is up 24% on the Lyst Index, both squeezing Burberry's core heritage category. Could a giant copy it? No, they are blocked.

What protects it. The trench coat and check pattern remain instantly recognized heritage IP that rivals cannot copy without looking derivative.

What would change this call

Burberry's Q2/Q3 FY2027 comparable sales figures (due Nov 2026 and early 2027). shows whether the four-quarter growth streak continues or the turnaround stalls.
Gross margin figures reported at H1 FY2027 results in November 2026. reveals whether profitability is recovering alongside sales or lagging.
Moncler and Ralph Lauren outerwear/heritage category sales growth reported in their own 2026-2027 earnings. indicates whether rivals keep taking share from Burberry in its core categories.

Key numbers

FY2025/26 revenue flat at £2,420m (2026-03-28)
Q1 FY2027 retail sales up 5% to £455m (2026-06-27)
Adjusted operating profit rebounded to £160m from £26m (2026-03-27)

Named risks

Execution risk on cutting up to 1,700 jobs (18-20% of workforce) by FY2027. Severity: medium
UK VAT-free shopping removal linked to ~50% drop in tourist demand. Severity: medium
Geopolitical spending pressure in Europe tied to Middle East conflict, flagged July 2026. Severity: medium
Gross margin flagged to dip below prior year in H1 FY2027 before recovering. Severity: medium
Governance friction after one-third shareholder rebellion on pay policy, July 2026. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Moncler	gaining on	Analysts compared Burberry's Q4 FY25/26 margin beat to Moncler's strong finish, May 2026
Ralph Lauren	gaining on	Ralph Lauren climbed 5 Lyst Index spots with +24% demand, Q4 2025
LVMH (Louis Vuitton)	losing to	LVMH Fashion & Leather Goods division exceeded €40bn revenue in 2024 vs Burberry's £2.42bn FY25/26
Hermès	losing to	Hermès revenue exceeded €13bn in 2024, dwarfing Burberry's scale
Coach/Michael Kors	contesting	Accessible-luxury leather goods rivalry concentrated in North America, 2025-2026

Questions people ask

Is Burberry profitable in 2026?: Yes, Burberry returned to profit in FY2025/26 (year to 28 March 2026): adjusted operating profit rebounded to £160m from £26m, and statutory operating profit turned positive at £115m, reversing the prior year's £66m net loss.
Is Burberry cutting jobs?: Yes. In May 2025 Burberry announced plans to cut up to 1,700 roles, about 18 to 20 percent of its global workforce, by FY2027 as part of a £60m incremental savings drive; Revelio Labs estimated headcount at 8,688 by December 2025.
Who owns Burberry?: Burberry is a public company listed on the London Stock Exchange under ticker BRBY, with no controlling parent. Norges Bank Investment Management raised its stake to 4.00 percent of voting rights as of 20 July 2026, one of its largest disclosed institutional holders.
Is Burberry's turnaround working?: Comparable store sales grew 2 percent in FY2025/26 after four straight quarters of growth, and Q1 FY2027 retail revenue rose 5 percent to £455m (13 weeks to 27 June 2026), with Americas up 12 percent and China up 9 percent, though shares still trade well below their 2,656p peak.
Who is Burberry's biggest competitor?: Analysts compared Burberry's Q4 FY2025/26 margin beat directly to rival outerwear maker Moncler's strong finish in May 2026, while Ralph Lauren climbed five spots with 24 percent higher consumer search demand in the Lyst Index Q4 2025, both squeezing Burberry's heritage categories.
Is it safe to take a job at Burberry right now?: It is a mixed picture: Burberry cut up to 1,700 roles (about 18-20 percent of staff) through FY2027 for £100m in savings, but the company also rejoined the FTSE 100 in September 2025 and delivered four consecutive quarters of comparable sales growth into mid 2026.

Timeline

2026-07-21Norges Bank raised its Burberry stake to 4.00% of voting rights
2026-07-17Management flagged Middle East conflict spending pressure and ~50% UK tourist demand drop
2026-07-15One-third of shareholders voted against new executive pay policy at AGM
2026-06-27Q1 FY2027 retail revenue up 5% to £455m, Americas +12%, China +9%
2026-05-28Company said £80m of targeted £100m cost savings already delivered
2026-03-27FY2025/26 revenue £2,420m flat, comp sales +2%, adjusted operating profit £160m
2025-09-01Burberry rejoined the FTSE 100 index
2025-05-14Announced up to 1,700 job cuts and suspended the dividend
2024-11-01Launched 'Burberry Forward' strategy reversing ultra-luxury pivot
2024-07-01Joshua Schulman appointed CEO

Revision history

23 July 2026

First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.

In the same band

Nike E-Land World Ltd.Dr. Squatch