# Burberry returns to profit as turnaround bears fruit

By Dan Coatsworth — 2026-05-14

Dan Coatsworth, head of markets at AJ Bell, said: “Burberry’s return to a more mid-tier and aspirational customer base is a tacit admission that in trying to compete at the high end of luxury it had flown too close to the sun.

“The more grounded strategy, emphasising the brand’s ‘Britishness’ and concentrating on items central to its heritage like scarves and trench coats seems to be paying off after a third consecutive quarter of retail sales growth.

“Combined with tighter control of the purse strings, Burberry has found the recipe for a return to profit with its full-year results.

“Despite strong fourth quarter growth in the key North American and Chinese markets, investors were spooked by a weaker performance in the Middle East and Europe as well as a gloomy tone to the outlook.

“Chief executive Joshua Schulman didn’t try and dress up the macroeconomic situation, as the Iran war hits tourism and puts spending on discretionary items under pressure.

“Management’s decision to continue the freeze on dividend payments is another indication of their caution about the immediate prospects for the business.

“This conservatism, while poorly received today, may help in the longer term if it keeps expectations in check.

“However, given the miserable experience Burberry shareholders have endured in recent years it seems they were looking for a bit more sunshine alongside the rain.”

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