NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1. Corporate information

Burberry Group plc and its subsidiaries (the Group) is a global luxury goods manufacturer, retailer and wholesaler. The Group also licenses third parties to manufacture and distribute products using the 'Burberry' trademarks. All of the companies which comprise the Group are controlled by Burberry Group plc (the Company) directly or indirectly.

 

2. Accounting policies and Basis of preparation

Basis of preparation

These condensed consolidated interim financial statements are unaudited but have been reviewed by the auditors and their report to the Company is set out on page 35. They were approved by the Board of Directors on 12 November 2025. These condensed consolidated interim financial statements do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the 52 weeks to 29 March 2025 were approved by the Board of Directors on 13 May 2025 and have been filed with the Registrar of Companies. The report of the auditors on the statutory accounts for the 52 weeks to 29 March 2025 was unqualified and did not contain a statement under Section 498 of the Companies Act 2006.

 

These condensed consolidated interim financial statements for the 26 weeks to 27 September 2025 have been prepared in accordance with the Disclosure Guidance and Transparency Rules of the Financial Services Authority and with IAS 34, 'Interim Financial Reporting' as adopted by the UK. This report should be read in conjunction with the Group's financial statements for the 52 weeks to 29 March 2025, which have been prepared in accordance with UK-adopted International Accounting Standards (IFRS).

 

These condensed consolidated interim financial statements are presented in £m. Financial ratios are calculated using unrounded numbers.

 

Going concern

In considering the appropriateness of adopting the going concern basis in preparing the financial statements, the Directors have assessed the potential cash generation of the Group. This assessment covers the period of a minimum of 12 months from the date of signing the condensed consolidated interim financial statements. The Directors have also considered the forecast for the period up to 27 March 2027, for any indicators that the going concern basis of preparation is not appropriate.

 

The scenarios considered by the Directors include a severe but plausible downside reflecting the Group's base plan adjusted for severe but plausible impacts from the Group's principal risks, which are consistent with the principal risks at 29 March 2025 other than the increasing risk to Cybersecurity and the reduced risk related to People. This central planning scenario is informed by a comprehensive review of macroeconomic scenarios using third party projections of macroeconomic data for the luxury fashion industry which reflects the current uncertain outlook. The Group's central planning scenario reflects a balanced projection with a continued focus to stabilise the business and position the brand for profitable sustainable growth.

 

As a sensitivity, this central planning scenario has been stressed to reflect the aggregation of severe impacts arising linked to our principal risks which in total represents a 18% downgrade to revenues in the 18 month period to 27 March 2027 as well as the associated consequences for EBITDA and cash. Management considers that this represents a severe but plausible downside scenario appropriate for assessing going concern.

 

For the purposes of the reverse stress test, we have considered the plausibility of a scenario that erodes the remaining cash headroom by reference to the lowest cash level in the annual business cycle. This test identified that the amount of revenue decline required on top of the severe but plausible scenario before the Group requires additional fundraising was, in the Group's opinion, implausible.

 

The severe but plausible downside modelled the following risks occurring simultaneously:

·      A more severe and prolonged reduction in the GDP growth assumptions across the markets in which we operate combined with a reduction to our global consumer demand arising from a change in consumer preference compared to our central planning scenario

·      An increase in geopolitical tension which leads to incremental unmitigated tariff risks compared to the central planning scenario

·      A significant reputational incident such as negative sentiment propagated through social media

·      The impact of a business interruption event, resulting in a two-week interruption arising from the supply chain impact, and interruption to one of our channels

·      The occurrence of a one-time physical risk relating to climate change in FY 2026/27 and the materialisation of a severe but plausible ongoing market risk relating to climate change in line with a scenario reflecting a 2°C global temperature increase compared to pre-industrial levels

·      The payment of a settlement arising from a regulatory or compliance-related matter

·      The impact of not delivering the anticipated cost savings from the Burberry Forward transformation programme

·      A short-term impact of a 10% weakening in a key non-sterling currency for the Group before it is recovered through price adjustment

 

Further mitigating actions within management control could be taken under a severe but plausible scenario, including working capital reduction measures and limiting capital expenditure and/or variable marketing costs.

 

The Directors have also considered the Group's current liquidity and available facilities. As at 27 September 2025, the Group Balance Sheet reflects cash net of overdrafts of £424 million. In addition, the Group has access to a £300 million revolving credit facility (£300 million RCF) which matures in November 2027,  which is currently undrawn. The going concern assessment does not rely upon having access to the £300 million RCF.

 

Details of cash, overdrafts, borrowings and facilities are set out in notes 14 and 17 of these financial statements.

 

In all the scenarios assessed, taking into account liquidity and available resources, the Group is able to maintain sufficient liquidity to continue trading throughout the going concern period to 27 March 2027. On the basis of the assessment performed, the Directors consider it is appropriate to continue to adopt the going concern basis in preparing the condensed consolidated interim financial statements for the period ended 27 September 2025.

 

Accounting policies

The material accounting policies adopted in the preparation of the condensed consolidated interim financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the 52 weeks ended 29 March 2025.

 

New standards, amendments and interpretations adopted in the period

There are no standards or amendments effective for the first time for the period ended 27 September 2025 that have a material impact on the condensed consolidated interim financial statements of the Group.

 

Standards not yet adopted

Certain new accounting standards and amendments to standards have been published that are not yet mandatory for the period ended 27 September 2025 and have not been early adopted by the Group. The Group is assessing the impact of these standards, including the impact from Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7, which is effective for the reporting period beginning 29 March 2026, and may have an impact on the Group. The Group has begun a comprehensive assessment of the impact of IFRS 18 Presentation and Disclosure in Financial Statements, which is effective for the reporting period beginning on 28 March 2027, subject to UK endorsement, to identify expected changes in the presentation of the Group's financial statements and in internal processes necessary to meet the requirements.

 

Key sources of estimation uncertainty

Preparation of the condensed consolidated interim financial statements in conformity with IFRS requires that management make certain estimates and assumptions that affect the measurement of reported revenues, expenses, assets and liabilities and the disclosure of contingent liabilities.

 

If in the future such estimates and assumptions, which are based on management's best estimates at the date of the financial statements, deviate from actual circumstances, the original estimates and assumptions will be updated as appropriate in the period in which the circumstances change.

 

Estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The key areas where the estimates and assumptions applied have a significant risk of causing a material adjustment to the carrying value of assets and liabilities are consistent with those applied in the Group's financial statements for the 52 weeks to 29 March 2025, as set out on pages 179 to 180 of those financial statements.

 

There have been no changes to the matters considered to be significant estimates in the period which remain impairment, or reversal of impairment, of property plant and equipment and right-of-use assets, inventory provisioning and uncertain tax positions.

 

Key judgements in applying the Group's accounting policies

Judgements are those decisions made when applying accounting policies which have a significant impact on the amounts recognised in the Group's financial statements. Key judgements that have a significant impact on the amounts recognised in the condensed consolidated interim financial statements for the 26 weeks to 27 September 2025 and the 26 weeks to 28 September 2024 are as follows:

 

Where the Group is a lessee, judgement is required in determining the lease term at initial recognition, and throughout the lease term, where extension or termination options exist. In such instances, all facts and circumstances that may create an economic incentive to exercise an extension option, or not exercise a termination option, have been considered to determine the lease term. Considerations include, but are not limited to, the period assessed by management when approving initial investment, together with costs associated with any termination options or extension options. Extension periods (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). There have been no significant judgements in relation to lease term made in the period.

 

Translation of the results of overseas businesses

The results of overseas subsidiaries are translated into the Group's presentation currency of sterling each month at the average exchange rate for the month, weighted according to the phasing of the Group's trading results. The average exchange rate is used, as it is considered to approximate the actual exchange rates on the dates of the transactions. The assets and liabilities of such undertakings are translated at the closing rates. Differences arising on the retranslation of the opening net investment in subsidiary companies, and on the translation of their results, are recognised in other comprehensive income.

 

Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and are translated at the closing rate.

 

The principal exchange rates used were as follows:

	Average rate			Closing rate
	26 weeks to  27 September 2025	26 weeks to 28 September 2024	52 weeks to 29 March 2025	As at 27 September 2025	As at 28 September 2024	As at 29 March 2025
Euro	1.17	1.18	1.19	1.15	1.20	1.20
US Dollar	1.34	1.29	1.28	1.34	1.34	1.29
Chinese Yuan Renminbi	9.65	9.23	9.21	9.57	9.41	9.40
Hong Kong Dollar	10.49	10.01	9.98	10.43	10.43	10.07
South Korean Won	1,869	1,746	1,781	1,889	1,755	1,903
Japanese Yen	196	195	194	200	192	194

 

Adjusted profit before taxation

In order to provide additional understanding of the underlying performance of the Group's ongoing business, the Group's results include a presentation of adjusted operating profit and adjusted profit before taxation (adjusted PBT). Adjusted PBT is defined as profit before taxation and before adjusting items. Adjusting items are those items which, in the opinion of the Directors, should be excluded in order to provide a consistent and comparable view of the performance of the Group's ongoing business. Generally, this will include those items that are largely one-off and/or material in nature, such as restructuring charges, as well as income or expenses relating to acquisitions or disposals of businesses or other transactions of a similar nature, including the impact of changes in fair value of expected future payments or receipts relating to these transactions. Adjusting items are identified and presented on a consistent basis each year and a reconciliation of adjusted PBT to profit before tax is included in the financial statements. Adjusting items and their related tax impacts, as well as adjusting taxation items, are added back to/deducted from profit attributable to owners of the Company to arrive at adjusted earnings per share. Refer to note 4 for further details of adjusting items and note 7 for details on adjusted earnings per share.

 

3. Segmental analysis

The Chief Operating Decision Maker has been identified as the Board of Directors. The Board reviews the Group's internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on the reports used by the Board. The Board considers the Group's business through its two channels to market, being retail/wholesale and licensing.

 

Retail/wholesale revenues are generated by the sale of luxury goods through Burberry full price stores, concessions, outlets and digital commerce as well as Burberry franchisees, prestige department stores globally and multi-brand specialty accounts. The flow of global product between retail and wholesale channels and across our regions is monitored and optimised at a corporate level and implemented via the Group's inventory hubs and principal distribution centres situated in Europe, the US, Mainland China and Hong Kong S.A.R, China.

 

Licensing revenues are generated through the receipt of royalties from global licensees of beauty products, eyewear and from licences relating to the use of non-Burberry trademarks in Japan.

 

The Board assesses channel performance based on a measure of adjusted operating profit. This measurement basis excludes the effects of adjusting items. The measure of earnings for each operating segment that is reviewed by the Board includes an allocation of corporate and central costs. Interest income and charges are not included in the result for each operating segment that is reviewed by the Board.

	Retail/Wholesale					Licensing				Total
		26 weeks to 27 September 2025 £m	26 weeks to 28 September 2024 £m		26 weeks to 27 September 2025 £m		26 weeks to 28 September 2024 £m		26 weeks to 27 September 2025 £m			26 weeks to 28 September 2024 £m
Retail		854	885		-		-		854			885
Wholesale		148	169		-		-		148			169
Licensing		-	-		31		32		31			32
Total segment revenue		1,002	1,054		31		32		1,033			1,086
Inter-segment revenue1		-	-		(1)		-		(1)			-
Revenue from external customers		1,002	1,054		30		32		1,032			1,086
Adjusted operating profit/(loss)		(9)	(70)		28		29		19			(41)
Adjusting items2									(37)			(12)
Operating loss									(18)			(53)
Finance income									14			11
Finance expense									(44)			(38)
Loss before taxation									(48)			(80)
				Retail/Wholesale				Licensing			Total
52 weeks to 29 March 2025				£m				£m			£m
Retail				2,076				-			2,076
Wholesale				319				-			319
Licensing				-				67			67
Total segment revenue				2,395				67			2,462
Inter-segment revenue1				-				(1)			(1)
Revenue from external customers				2,395				66			2,461
Adjusted operating profit/(loss)				(36)				62			26
Adjusting items2											(29)
Operating loss											(3)
Finance income											25
Finance expense											(88)
Loss before taxation											(66)

1. Inter-segment transfers or transactions are entered into under the normal commercial terms and conditions that would be available to unrelated third parties.

2. Adjusting items relate to the Retail/Wholesale segment. Refer to note 4 for details of adjusting items.

 

Additional revenue analysis

All revenue is derived from contracts with customers. The Group derives retail and wholesale revenue from contracts with customers from the transfer of goods and related services at a point in time. Licensing revenue is derived over the period the licence agreement gives the customer access to the Group's trademarks.

Revenue by product division	26 weeks to  27 September 2025 £m	26 weeks to 28 September 2024 £m	52 weeks to 29 March 2025 £m
Accessories	343	367	841
Womenswear	312	313	718
Menswear	304	324	732
Childrenswear and other	43	50	104
Retail/Wholesale	1,002	1,054	2,395
Licensing	30	32	66
Total	1,032	1,086	2,461

 

Revenue by destination	26 weeks to  27 September 2025 £m	26 weeks to 28 September 2024 £m	52 weeks to 29 March 2025 £m
Asia Pacific1,4	152	167	381
Greater China1,3	253	277	662
EMEIA2	381	392	842
Americas	216	218	510
Retail/Wholesale	1,002	1,054	2,395
Licensing	30	32	66
Total	1,032	1,086	2,461

1. Commencing 30 March 2025, the former Asia Pacific region was restructured into two regions, Asia Pacific and Greater China. The revenue by destination for the comparative periods has been restated to reflect the new regional structure. For the 26 weeks to 28 September 2024 and 52 weeks to 29 March 2025, revenue attributable to Asia Pacific decreased by £277 million and £662 million, respectively, with that revenue now attributable to Greater China.

2. EMEIA consists of Europe, Middle East, India and Africa.

3. Greater China consists of Mainland China; Hong Kong S.A.R, China; Macau S.A.R, China; and Taiwan Area, China.

4. Asia Pacific consists of the rest of Asia; including Japan, South Korea, Southeast Asia, Australia and New Zealand.

 

Due to the seasonal nature of the business, Group revenue is usually expected to be higher in the second half of the year than in the first half. Some of the Group's operating costs are also higher in the second half of the year, such as contingent rentals and sales related employee costs, most of the operating costs, in particular salaries and fixed rentals, are phased more evenly across the year.

 

4. Adjusting items

	26 weeks to  27 September 2025 £m	26 weeks to  28 September 2024 £m	52 weeks to 29 March 2025 £m
Total adjusting operating items	37	12	29
Tax on adjusting items	(9)	(3)	(7)
Total adjusting items (post-tax)	28	9	22

 

Restructuring costs

During the 26 weeks to 27 September 2025, restructuring costs of £37 million (last half year: £12 million; last full year: £29 million) were incurred, arising as a result of the Burberry Forward transformation programme initiated during the prior year and the majority of which is expected to conclude by the end of FY 2025/26. The costs, principally related to redundancies and consultancy costs, were recorded in operating expenses. These costs are presented as an adjusting item, in accordance with the Group's accounting policy, as the anticipated cost of the restructuring programme is considered material and discrete in nature. A related tax credit of £9 million (last half year: £3 million; last full year: £7 million) has also been recognised in the current year. The cumulative costs, which are largely cash costs, related to the Burberry Forward transformation programme are expected to total £80 million.

 

5. Financing

	26 weeks to  27 September 2025 £m	26 weeks to 28 September 2024 £m	52 weeks to 29 March 2025 £m
Finance income - amortised cost	4	6	12
Finance income - fair value through profit and loss	10	5	13
Finance income	14	11	25
Finance expense on lease liabilities	(23)	(25)	(49)
Finance expense on overdrafts	(1)	(3)	(7)
Interest expense on borrowings	(17)	(8)	(25)
Other finance expense	(2)	(1)	(5)
Bank charges	(1)	(1)	(2)
Finance expense	(44)	(38)	(88)
Net finance expense	(30)	(27)	(63)

 

6. Taxation

The Group's adjusted effective tax rate is 109% (last half year: 5%) and the reported effective tax rate is 45% (last half year: 8%).

 

The effective tax rate is sensitive to the geographic mix of profits. The Group is within the scope of the UK legislation in relation to the Global anti-Base Erosion Model Rules ('GLoBE Rules' or 'Pillar Two' model rules) which apply to the Group for this accounting period. Based on the most recent forecast financial information available for the constituent entities in the Group, the Pillar Two effective tax rates in most of the jurisdictions in which the Group operates are above 15%. However, there are a limited number of jurisdictions where the transitional safe harbour relief does not apply and the Pillar Two effective tax rate is close to 15%. There is no material impact of the Pillar Two legislation for the Group.

 

	26 weeks to  27 September 2025 £m	26 weeks to 28 September 2024 £m	52 weeks to 29 March 2025 £m
Current tax
Current tax on income for the period	-	49	30
Double taxation relief	-	(1)	-
Adjustments in respect of prior years	3	(2)	8
Total current tax	3	46	38
Deferred tax
Origination and reversal of temporary differences	(13)	(54)	(33)
Adjustments in respect of prior years1	(11)	2	4
Total deferred tax	(24)	(52)	(29)
Total tax (credit)/charge on profit or loss	(21)	(6)	9

1. Adjustments in respect of prior years reflect statutory account differences relating to tax loss estimates in China and temporary differences relating to impairments.

 

Total taxation recognised in the Condensed Group Income Statement comprises:

	26 weeks to  27 September 2025 £m	26 weeks to 28 September 2024 £m	52 weeks to 29 March 2025 £m
Tax on adjusted (loss)/profit before taxation	(12)	(3)	16
Tax on adjusting items (note 4)	(9)	(3)	(7)
Total tax (credit)/charge on profit or loss	(21)	(6)	9

 

Deferred tax

The major deferred tax assets/(liabilities) recognised by the Group and movements during the period are as follows:

							Net deferred tax asset £m
Balance as at 29 March 2025							232
Effect of foreign exchange rates							(3)
Credited to the Income Statement							24
Balance as at 27 September 2025							253
Balance as at 28 September 2024							250

 

The most significant deferred tax asset recognised for the period relates to the provision for unrealised profit on inventory sold intragroup.

 

7. Earnings per share

The calculation of basic earnings per share is based on profit or loss attributable to owners of the Company for the period divided by the weighted average number of ordinary shares in issue during the period. Basic and diluted earnings per share based on adjusted profit after taxation are also disclosed to indicate the underlying profitability of the Group.

	26 weeks to  27 September 2025 £m	26 weeks to 28 September 2024 £m	52 weeks to 29 March 2025 £m
Attributable profit/(loss) for the period before adjusting items1	2	(65)	(53)
Effect of adjusting items1 (after taxation)	(28)	(9)	(22)
Attributable loss for the period	(26)	(74)	(75)

1.  Refer to note 4 for details of adjusting items.

 

The weighted average number of ordinary shares represents the weighted average number of Burberry Group plc ordinary shares in issue throughout the period, excluding ordinary shares held in the Group's ESOP trusts and treasury shares held by the Company or its subsidiaries.

 

Diluted earnings/(loss) per share is based on the weighted average number of ordinary shares in issue during the period. In addition, account is taken of any options and awards made under the employee share incentive schemes, which could have a dilutive effect when exercised.

 

	26 weeks to  27 September 2025 Millions	26 weeks to 28 September 2024 Millions	52 weeks to 29 March 2025 Millions
Weighted average number of ordinary shares in issue during the period	358.2	357.3	357.5
Dilutive effect of the employee share incentive schemes1	2.2	0.7	0.9
Diluted weighted average number of ordinary shares in issue during the period	360.4	358.0	358.4

 

	26 weeks to  27 September 2025 Pence	26 weeks to 28 September 2024 Pence	52 weeks to 29 March 2025 Pence
Loss per share
Basic	(7.1)	(20.8)	(20.9)
Diluted1	(7.1)	(20.8)	(20.9)
Adjusted earnings/(loss) per share
Basic	0.6	(18.3)	(14.8)
Diluted1	0.6	(18.3)	(14.8)

1. Where the Group has incurred an attributable loss, the effect of employee share incentive schemes is antidilutive and therefore not included in the calculation of diluted loss per share for the period.

 

8. Dividends paid to owners of the Company

The Directors have elected not to declare an interim dividend in respect of the 26 weeks to 27 September 2025 (last half year: £nil).

 

No dividends were paid during the period to 27 September 2025 in relation to the year ended 29 March 2025. A dividend of 42.7p per share was paid during the period to 28 September 2024 in relation to the year ended 30 March 2024.

 

9. Intangible assets

Goodwill at 27 September 2025 is £115 million (last half year: £115 million; last full year: £114 million). There were no additions (last half year: £nil; last full year: £nil) and no impairments (last half year: £nil; last full year: £nil) of goodwill in the period.

 

In the period there were additions to other intangible assets of £13 million (last half year: £11 million; last full year: £24 million) and disposals with a net book value of £nil (last half year: £nil; last full year: £nil).

 

Intangible asset capital commitments contracted but not provided for by the Group amounted to £4 million (last half year: £2 million; last full year: £2 million).

 

Impairment testing

Assets that have an indefinite useful economic life are not subject to amortisation and are tested annually for impairment.

 

Goodwill is the only intangible asset category with an indefinite useful economic life included within total intangible assets at 27 September 2025. Management has performed a review for indicators of impairment as at 27 September 2025 and concluded that there are no indicators at this time as sufficient headroom remains after considering updated cost and revenue assumptions for the most significant cost generating units. The annual impairment test will be performed at 28 March 2026.

 

No impairment charge was recorded in relation to other intangible assets for the 26 weeks to 27 September 2025 (last half year: £1 million; last full year: £4 million).

 

10. Property, plant and equipment

In the period there were additions to property, plant and equipment of £23 million (last half year: £72 million; last full year: £123 million) and disposals with a net book value of £nil million (last half year: £12 million; last full year: £nil). Additions include £21 million (last half year: £71 million; last full year: £122 million) arising as a result of investing cash outflows and £2 million (last half year: £1 million; last full year: £1 million) movement in capital expenditure accruals.

 

Property, plant and equipment capital commitments contracted but not provided for by the Group amounted to £13 million (last half year: £42 million; last full year: £16 million).

 

No assets were classified as held for sale at 27 September 2025. During the 26 weeks to 28 September 2024, the Group completed the sale of a freehold property previously classified as held for sale for £12 million, resulting in a net gain on disposal of £nil.

 

Impairment testing

During the current period, management reviewed their assumptions on retail cash generating units and reviewed these units for any indication of impairment or reversal of impairment previously recorded. Where indicators of impairment or impairment reversal have been identified, an impairment analysis was carried out comparing the value-in-use of the cash generating unit to their net book values at 27 September 2025. The pre-tax cash flow projections used for this review were based on financial plans of expected revenues and costs of each retail cash generating unit, approved by management, and extrapolated beyond the current year to the lease end dates using growth rates and inflation rates appropriate to each store's location.

 

During the 26 weeks to 27 September 2025, following the impairment review of retail cash generating units, no impairment charge or reversal was recorded against property, plant and equipment (last half year: charge of £8 million; last full year: charge of £10 million). The impairment review carried out considers internal and external impairment indicators for all retail stores above a specified asset value and the subsequent value-in-use calculations include certain assumptions, particularly over revenue growth over the remaining lease term. Refer to note 11 for further details of right-of-use asset impairment.

 

Management has considered the potential impact of changes in assumptions on the impairment recorded against the Group's
retail assets. Management has considered sensitivities to the impairment charge as a result of changes to the estimate of future revenues achieved by the retail stores. The sensitivities applied are an increase or decrease in revenue of 10% from the estimate used to determine the impairment charge or reversal. It is estimated that a 10% decrease in revenue assumptions for the first 12 months of the model, with no change to subsequent forecast revenue growth rate assumptions, would result in approximately a £4 million impairment charge of retail store assets, which comprise property, plant, and equipment and right-of-use assets, in the 26 weeks to 27 September 2025. It is estimated that at 10% increase in revenue assumptions in relation to stores that meet the criteria for consideration of impairment reversal would result in approximately a £6 million impairment reversal of retail store assets in the 26 weeks to 27 September 2025.

 

11. Right-of-use assets

In the period there were additions to right-of-use assets of £15 million (last half year: £39 million; last full year: £70 million) and remeasurements of £26 million (last half year: £52 million; last full year: £80 million). Depreciation of right-of-use assets of £110 million (last half year: £124 million; last full year: £247 million) is included within operating expenses.

 

Impairment testing

During the 26 weeks to 27 September 2025, following the impairment review of retail cash generating units, no impairment charge or reversal was recorded against right-of-use assets (last half year: charge of £24 million; last full year: charge of £32 million). Refer to note 10 for further details of the impairment assessment of retail cash generating units.

 

12. Trade and other receivables

	As at 27 September 2025 £m	As at 28 September 2024 £m	As at 29 March 2025 £m
Non-current
Other financial receivables1	42	44	43
Prepayments	4	3	5
Total non-current trade and other receivables	46	47	48
Current
Trade receivables	139	149	141
Provision for expected credit losses	(12)	(12)	(11)
Net trade receivables	127	137	130
Other financial receivables1	27	32	32
Other non-financial receivables2	98	103	104
Prepayments	45	46	28
Accrued income	16	17	15
Total current trade and other receivables	313	335	309
Total trade and other receivables	359	382	357

1. Other financial receivables include rental deposits and other sundry debtors.

2. Other non-financial receivables relate to indirect taxes and other taxes and duties.

The net charge for impairment of financial receivables in the period was £2 million (last half year: net charge of £2 million; last full year: net charge of £2 million).

 

13. Inventories

Inventory provisions of £87 million (last half year: £102 million; last full year: £103 million) are recorded, representing 16.1% (last half year: 14.6%; last full year: 19.6%) of the gross value of inventory. The provisions reflect management's best estimate of the net realisable value of inventory, where this is considered to be lower than the cost of the inventory.

 

Taking into account factors impacting the inventory provisioning including trading assumptions being higher or lower than expected, management considers that a reasonable potential range of outcomes could result in an increase in inventory provisions of £18 million or a decrease in inventory provisions of £19 million in the next 12 months. This would result in a potential range of inventory provisions of 12.6% to 19.5% as a percentage of the gross value of inventory as at 27 September 2025.

 

14. Cash and cash equivalents

	As at 27 September 2025 £m	As at 28 September 2024 £m	As at 29 March 2025 £m
Cash and cash equivalents held at amortised cost Cash at bank and in hand	111	188	174
Short-term deposits	131	101	132
	242	289	306
Cash and cash equivalents held at fair value through profit and loss Short-term deposits	210	141	507
Total	452	430	813

Cash and cash equivalents classified as fair value through profit and loss relate to deposits held in low volatility net asset value money market funds. The cash is available immediately and, since the funds are managed to achieve low volatility, no significant change in value is anticipated. The funds are monitored to ensure there are no significant changes in value.

15. Trade and other payables

	As at 27 September 2025 £m	As at 28 September 2024 £m	As at 29 March 2025 £m
Non-current
Other payables1	3	2	3
Deferred income and non-financial accruals	7	7	8
Contract liabilities	41	48	43
Total non-current trade and other payables	51	57	54
Current
Trade payables	120	146	146
Other taxes and social security costs	62	52	46
Other payables1	36	26	31
Accruals	153	147	160
Deferred income and non-financial accruals	7	10	8
Contract liabilities	11	11	11
Deferred consideration2	3	5	3
Total current trade and other payables	392	397	405
Total trade and other payables	443	454	459

1. Other payables are comprised of interest and employee-related liabilities.

2. Deferred consideration relates to the acquisition of the economic right to the non-controlling interest in Burberry Middle East LLC on 22 April 2016. No deferred consideration payments were made in the 26 weeks to 27 September 2025 (last half year: £nil; last full year: £2 million).

 

Contract liabilities

Retail contract liabilities relate to unredeemed balances on issued gift cards and similar products, and advanced payments received for sales which have not yet been delivered to the customer, which are all considered current. Licensing contract liabilities relate to deferred revenue arising from the upfront payment for the Beauty licence which is being recognised in revenue over the term of the licence on a straight-line basis reflecting access to the trademark over the licence period to 2032.

 

	As at 27 September 2025 £m	As at 28 September 2024 £m	As at 29 March 2025 £m
Retail contract liabilities	4	5	4
Licensing contract liabilities	48	54	50
Total contract liabilities	52	59	54

 

16. Provisions for other liabilities and charges

	Property obligations £m	Restructuring costs1 £m	Other costs £m	Total £m
Balance as at 29 March 2025	43	8	9	60
Created during the period	-	37	1	38
Utilised during the period	(1)	(33)	-	(34)
Released during the period	-	-	(1)	(1)
Balance as at 27 September 2025	42	12	9	63
Balance as at 28 September 2024	47	7	7	61

 

	As at 27 September 2025 £m	As at 28 September 2024 £m	As at 29 March 2025 £m
Analysis of total provisions:
Non-current	33	35	33
Current	30	26	27
Total	63	61	60

1. Provision for restructuring costs relates to the Burberry Forward transformation programme initiated during the prior year which is included as an adjusting item. Refer to note 4 for details of adjusting items.

 

17. Overdrafts and Borrowings

		As at 27 September 2025		As at 28 September 2024		As at 29 March 2025
	Maturity	Carrying value £m	Fair value £m	Carrying value £m	Fair value £m	Carrying value £m	Fair value £m
Bank overdrafts1	-	28	28	106	106	105	105
1.125% £300m MTN Sustainability-linked bond2	Sep 2025	-	-	299	288	300	294
5.75% £450m MTN Fixed rate bond3	Jun 2030	442	451	303	290	438	443
£75 million multi-currency revolving credit facility4	Mar 2027	75	75	-	-	-	-
Total		545	554	708	684	843	842

1. Bank overdrafts includes £28 million (last half year: £106 million; last full year: £105 million) representing balances on cash pooling arrangements in the Group. The fair value of overdrafts approximates the carrying amount due to the short maturity of these instruments.

2. The sustainability bond was repaid in full on 22 September 2025.

3. All movements on the bond were non cash. The Group has entered into interest rate swaps to reduce the level of fixed rate debt in accordance with the Group Treasury Policy, and has entered the swaps into fair value hedge relationships with the bond. Interest on the bond is payable semi-annually.

4. The Group has a £75 million multi-currency revolving credit facility (RCF) with a syndicate of banks, maturing in March 2027. The £75 million RCF agreement contains an option which will allow the Group to extend for an additional one year which is exercisable in 2026, at the consent of the syndicate. During the current period, there was a drawdown of £75 million on the £75 million RCF, and at 27 September 2025 the outstanding drawings are £75 million. The interest rate on the £75 million facility is SONIA plus commercial margin. There were no drawdowns or repayments of the RCF during the prior year.

 

	As at 27 September 2025 £m	As at 28 September 2024 £m	As at 29 March 2025 £m
Analysis of total overdrafts and borrowings:
Non-current	517	303	438
Current	28	405	405
Total	545	708	843

 

The Group has a £300 million RCF with a syndicate of banks, maturing in November 2027. There were no drawdowns or repayments of the £300 million RCF during the current or prior year, and at 27 September 2025 there were no outstanding drawings.

 

The Group is in compliance with the financial and other covenants within the facilities above and has been in compliance throughout the financial period.

 

18. Share capital and reserves

Allotted, called up and fully paid share capital	Number	£m
Ordinary shares of 0.05p (last year: 0.05p) each
As at 30 March 2024	363,815,743	0.2
Allotted on exercise of options during the period	571	-
As at 28 September 2024	363,816,314	0.2
As at 29 March 2025	363,816,314	0.2
Allotted on exercise of options during the period	2,973	-
As at 27 September 2025	363,819,287	0.2

Other reserves

The Company has a general authority from shareholders, renewed at each Annual General Meeting, to repurchase a maximum of 10% of its issued share capital.

 

As at 27 September 2025, the Company held 2.8 million treasury shares (last half year: 5.2 million; last full year: 4.6 million), with a market value of £33 million based on the share price at the reporting date (last half year: £37 million; last full year: £37 million). The treasury shares held by the Company are related to the share buy-back programme completed during the 52 weeks to 2 April 2022. During the 26 weeks to 27 September 2025, 1.8 million treasury shares were transferred to ESOP trusts (last half year: none; last full year: 0.6 million). During the 26 weeks to 27 September 2025, no treasury shares were cancelled (last half year: none; last full year: none).

 

The cost of shares purchased by ESOP trusts are offset against retained earnings, as the amounts paid reduce the profits available for distribution by the Company. As at 27 September 2025, the cost of own shares held by ESOP trusts and offset against retained earnings is £53 million (last half year: £23 million; last full year: £29 million). As at 27 September 2025, the ESOP trusts held 2.8 million shares (last half year: 1.3 million; last full year: 1.7 million) in the Company, with a market value of £32 million (last half year: £9 million; last full year: £14 million). In the 26 weeks to 27 September 2025 the Group purchased £5 million of ESOP shares (last half year: £nil; last full year: £nil). In the 26 weeks to 27 September 2025 the ESOP trusts and the Company have waived their entitlement to dividends.

 

Other reserves in the Statement of Changes in Equity consists of the capital reserve, the foreign currency translation reserve, and the hedging reserves. The hedging reserves consist of the cash flow hedge reserve and the net investment hedge reserve.

 

19. Fair value disclosure for financial instruments

The Group's principal financial instruments comprise derivative instruments, cash and cash equivalents, borrowings (including overdrafts), trade and other receivables and trade and other payables arising directly from operations.

 

The fair value of the Group's financial assets and liabilities held at amortised cost approximate their carrying amount due to the short maturity of these instruments with the exception of the £450 million MTN Fixed rate bond (refer to note 17) and £13 million (last half year: £13 million) held in non-current other receivables relating to an interest-free loan provided to a landlord in Korea. At 27 September 2025, the discounted fair value of the loan provided to a landlord in Korea is £13 million (last half year: £13 million).

 

The measurements for financial instruments carried at fair value are categorised into different levels in the fair value hierarchy based on the inputs to the valuation technique used. The different levels are defined as follows:

 

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the measurement date.

 

Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.

 

Level 3: includes unobservable inputs for the asset or liability.

 

Observable inputs are those which are developed using market data, such as publicly available information about actual events or transactions. The Group has an established framework with respect to measurement of fair values, including Level 3 fair values. The Group regularly reviews any significant inputs which are not derived from observable market data and considers, where available, relevant third-party information, to support the conclusion that such valuations meet the requirements of IFRS. The classification level in the fair value hierarchy is also considered periodically.

 

The fair value of those cash and cash equivalents measured at fair value through profit and loss, principally money market funds, is derived from their net asset value which is based on the value of the portfolio investment holdings at the balance sheet date. This is considered to be a Level 2 measurement.

 

The fair value of derivative contracts and trade and other receivables, principally cash-settled equity swaps,  is based on a comparison of the contractual and market rates and, in the case of other derivative contracts, after discounting using the appropriate yield curve as at the balance sheet date. All Level 2 fair value measurements are calculated using inputs which are based on observable market data.

 

20. Related party transactions

The Group's significant related parties are disclosed in the Annual Report for the 52 weeks to 29 March 2025. There were no material changes to these related parties in the period, other than changes to the composition of the Board. Other than total compensation in respect of key management, no material related party transactions have taken place during the current period.

 

21. Contingent liabilities

The Group is subject to claims against it and to tax audits in a number of jurisdictions which arise in the ordinary course of business. These typically relate to Value Added Taxes, sales taxes, customs duties, corporate taxes, transfer pricing, payroll taxes, various contractual claims, legal proceedings and other matters. Where appropriate, the estimated cost of known obligations have been provided in these financial statements in accordance with the Group's accounting policies. The Group does not expect the outcome of current similar contingent liabilities to have a material effect on the Group's financial position.

 

STATEMENT OF DIRECTORS' RESPONSIBILITIES

 

The Directors confirm that the condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the UK and that the Interim Management Report and condensed consolidated interim financial statements include a fair review of the information required by Disclosure Guidance and Transparency Rules 4.2.7 and 4.2.8, namely:

 

-     an indication of important events that have occurred during the first 26 weeks of the financial year and their impact on the condensed consolidated interim financial statements, and a description of the principal risks and uncertainties for the remaining 26 weeks of the financial year; and

-     material related party transactions in the first 26 weeks of the financial year and any material changes in the related party transactions described in the last Annual Report.

The Directors of Burberry Group plc are consistent with those listed in the Burberry Group plc Annual Report for the 52 weeks to 29 March 2025 including Stella King who was appointed on 1 April 2025, and noting that Fabiola Arredondo, Antoine De Saint-Affrique, and Sam Fischer did not stand for re-election at the 2025 Annual General Meeting on 16 July 2025.

 

A list of current directors is maintained on the Burberry Group plc website: www.burberryplc.com.

 

By order of the Board

 

 

 

 

Joshua Schulman
Chief Executive Officer
12 November 2025

 

 

 

Kate Ferry
Chief Financial Officer
12 November 2025