Dear Shareholder,
This has been a year of recovery and gathering momentum for Burberry. We have begun to see tangible results from Burberry Forward, our strategic plan introduced in November 2024 under the leadership of our Chief Executive Officer, Joshua Schulman.
Strategic progress
As Josh outlines in his letter, his second year as Chief Executive Officer marked an inflection as he accelerated the execution of Burberry Forward to reignite brand desire, improve performance and drive long-term value creation, while keeping our customer at the centre of everything we do. As a result, we delivered a 2% improvement in year-on-year comparable sales growth, and significantly improved profitability. The Board also approved the actions needed to reset the size of the organisation and our cost structure to support our business transformation and our investment for growth in the longer term.
Shareholder returns
As previously mentioned, in July 2024, we made the decision to suspend dividend payments in respect of FY 2024/25. In line with our Capital Allocation Framework, we have maintained this prudent approach for FY 2025/26 which will support the business as we execute Burberry Forward. While our priority is to reinvest in the business, our intention is to return to paying dividends as soon as possible, while maintaining a robust balance sheet. The Board welcomes discussions with shareholders and Directors have held several meetings during the financial year on a variety of topics including our Remuneration Policy consultation as explained below. For further information, see pages 141 to 177.
Purpose and values
Reflecting on our brand’s legacy and enduring principles, in October 2025, the Board approved our reimagined purpose and values to embed the spirit of Burberry Forward into our business. Our purpose, To Embrace the Elements with Open Arms, and renewed values of Protect, Explore and Inspire were shared with global colleagues to guide how we think, act and make decisions across the business.
Sustainable business
Environmental and social responsibility remains a key focus for the Board, and we continue to make good progress against our sustainability goals and long-term climate ambition. During the year, the Board reviewed and approved refined sustainability targets and Burberry’s first Climate Transition Plan. This includes extending our overall net zero target from FY 2039/40 to FY 2049/50 which reflects a greater understanding of our greenhouse gas (GHG) emissions across our value chain, investment in our data capabilities and the latest science-based methodologies, while considering progress across the industry and wider economy. We also continued to expand our Burberry Inspire programme through The Burberry Foundation, working with young people across the globe to inspire the next generation of creative talent.
Remuneration policy consultation
Our new Directors’ Remuneration Policy, details of which can be found on pages 150 to 160, will be presented to shareholders for approval at our 2026 Annual General Meeting (AGM). Following the normal three-year cycle, the policy approved in 2023 will expire on that day. When preparing the new policy, we initiated a shareholder engagement programme, led by Danuta Gray, Chair of our Remuneration Committee, and me, which included contacting shareholders controlling approximately 60% of our issued share capital. Danuta’s letter on pages 141 to 145, provides more details with respect to that consultation process and the proposed policy which aims to further support the delivery of our strategy while continuing to retain, recruit and incentivise our management team.
Board changes
Following our 2025 AGM, Fabiola Arredondo, Sam Fischer and Antoine de Saint-Affrique stepped down as Non-Executive Directors. On behalf of the Board, I thank Fabiola, Sam and Antoine for sharing their talent and insights with Burberry and for their valuable contributions to our Company during their tenures.
I have decided to retire from the Board, having served as Chair since 2018. William Jackson has been appointed Non-Executive Director and Chair-designate, effective 1 July 2026 and will succeed me as Chair with effect from the date of our interim results in November 2026. I’m very much looking forward to working closely with William over the coming months to support this transition.
It has been a privilege to serve as Chair of this extraordinary 170-year-old brand since 2018. I would like to thank Board members past and present for their unwavering commitment and continued support. I am very confident that, under William’s and Josh’s leadership, this unique and special business is well positioned for the future.
Looking ahead
Burberry is a business that never stands still. While we continue our recovery and transformation journey, we are building strong momentum. As we mark our 170th year, I am reminded of the enduring strength and resilience of Burberry, a brand with a rich heritage of creativity and innovation. In this spirit, I would like to take this opportunity to thank our colleagues across the globe, the Board, our shareholders and customers for their continued support.
Gerry Murphy
Chair