Annual Report 2025/26

Strategic Report
Chair’s Letter 2
Chief Executive Officer’s Letter 4
FY 2025/26 Highlights 7
A Heritage 170 Years in the Making 8
Our Purpose and Values 11
Our Business Model 12
The Global Luxury Market in 2025 14
Our Strategy Overview 17
Business Update 18
Financial Measures 26
Financial Review 27
Capital Allocation Framework 32
Our People and Culture 33
Sustainability at Burberry 36
Section 172 (1) Statement and Stakeholder Engagement 38
Non-Financial and Sustainability Information Statement 94
Risk and Viability Report 95
Viability Statement 104
Corporate Governance Statement
Chair’s Introduction 108
Board of Directors
Executive Committee
109
113
Corporate Governance Report 114
Governance Structure and Division of Responsibilities 121
Composition, Succession and Evaluation 125
Nomination Committee Report 127
Audit Committee Report
Directors’ Remuneration Report
132
141
Directors’ Report 178
Financial Statements
Statement of Directors’ Responsibilities 181
Independent Auditor’s Report to the Members
ofBurberryGroup plc
182
Group Income Statement 192
Group Statement of Comprehensive Income 193
Group Balance Sheet 194
Group Statement of Changes in Equity 195
Group Statementof Cash Flows 196
Notes to the Financial Statements 197
Five-Year Summary 237
Company Balance Sheet 240
Company Statement of Changes in Equity 241
Notes to the Company Financial Statements 242
Shareholder Information 250
For further information,
visit Burberryplc.com

Alva Claire for High Summer 2025, photographed by Drew Vickers.

Strategic Report | Chair’s Letter
“While we continue
ourrecovery and
transformation journey,
we are building strong
momentum.”
Burberry Annual Report 2025/262

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.
THIS FINANCIAL YEAR MARKS
ANINFLECTION FOR BURBERRY
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 170
th
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
Strategic Report | Chair’s Letter
Burberry Annual Report 2025/26 3

Strategic Report | Chief Executive Officer’s Letter
“My confidence in this
extraordinary 170-year-old
British luxury brand is
stronger than ever.”
Burberry Annual Report 2025/264

Dear Shareholder,
When I wrote to you one year ago, we were in the
early phase of our Burberry Forward transformation,
deeply focused on stabilising the business and
recovering our operational and financial performance.
As I approach the end of my second year as
Burberry’sChief Executive Officer, I am proud
oftheprogress we have made in FY 2025/26.
This financial year has marked a meaningful inflection point
forBurberry. We have returned to profitable comparable sales
growth, with a strong fourth quarter driven by momentum
inGreater China and the Americas. Our strategy is working,
andthere are clear opportunities for further growth.
As we look ahead, our focus is on disciplined execution of
Burberry Forward. I am more confident than ever that Burberry
isfirmly positioned for long-term value creation.
FY 2025/26 performance
Burberry’s performance in the financial year reflects consistent
execution of our strategy across all four pillars, with the customer
at the centre. For FY 2025/26:
• Revenue was £2,420 million, flat at constant exchange rates
• Adjusted operating profit was £160 million, an increase of 551%
at constant exchange rates
• Reported operating profit was £115 million
• Adjusted diluted earnings per share (EPS) was 15.2 pence,
anincrease of 202% at reported exchange rates
• Reported diluted EPS was 5.9 pence, an increase of 128%
atreported exchange rates
Burberry Forward
When we set out Burberry Forward, we defined a clear path
tobuild brand relevance and value creation.
With our Timeless British Luxury brand expression, we have
reignited brand momentum and improved cultural relevance.
From global activations, including Portraits of an Icon, which
celebrates our iconic trench coat to kick off our 170
th
anniversary,
to localised campaigns, including the Year of the Horse 2026, we
have consistently communicated Timeless British Luxury through
immersive storytelling juxtaposing our heritage and innovation.
We have asserted our authority in outerwear and scarves,
whichwas reflected in the outperformance of these categories
throughout the year. As the year progressed, we saw this
momentum extend into other categories.
Across our retail network, we continued to evolve key locations
toenhance the visibility of our hero products while increasing
productivity. We have rolled out over 200 Scarf Bars, with additional
product destinations to come in the year ahead. We are also
building strong momentum in e-commerce, driven by our
improved site experience.
OUR BURBERRY FORWARD STRATEGY
ISWORKING AND THERE ARE CLEAR
OPPORTUNITIES FOR FURTHER GROWTH
All of this is underpinned by a high-performance culture with
creative and commercial alchemy at its heart. We evolved our
Executive Committee to include our Regional Presidents and
appointed a Chief Operating and Supply Chain Officer and
ChiefCustomer Officer, strengthening our focus on executional
excellence and our customers. We also strengthened our
Merchandising, Design and Product Development teams
todrivesharper decision-making and consistent execution.
Throughout the year, we embedded changes aimed at enhancing
collaboration, increasing our agility and aligning our cost base
toour size. We have delivered £80 million in cost savings in
FY 2025/26, with combined annualised savings of £100 million
expected by FY 2026/27. At the same time, we are investing
inthefuture of British manufacturing and craftsmanship with
amajor two-year renovation of our historic Castleford factory
inYorkshire, the home of the iconic Burberry trench coat.
I would also like to thank Gerry for his steadfast guidance and
invaluable counsel as Chair. Gerry has played an important role
insupporting me throughout my time as CEO, and I am proud
ofthe progress that we have achieved together.
I look forward to partnering closely with William as we continue
todrive Burberry Forward.
Looking ahead
This year was an important step on our way to returning this
business to £3 billion in sales. While we remain mindful of the
more uncertain macro-economic environment, our focus is firmly
on disciplined, consistent execution of Burberry Forward. With
increased brand relevance and product authority, we are moving
forward with conviction.
I would like to thank all my colleagues around the world who
continue to drive Burberry Forward with passion and dedication.
My confidence in this extraordinary 170-year-old brand has
neverbeen stronger.
Joshua Schulman
Chief Executive Officer
Strategic Report | Chief Executive Officer’s Letter
Burberry Annual Report 2025/26 5

Strategic Report
Tyson Beckford for ‘It’s Always Burberry Weather: Postcards from London’ 2025, photographed by Drew Vickers.
Burberry Annual Report 2025/266

Strategic Report | FY 2025/26 Highlights
Adjusted diluted EPS
15.2p
(FY 2024/25: (14.8)p)
Diluted EPS
5.9p
(FY 2024/25: (20.9)p)
Operating profit
£115m
(FY 2024/25: £(3)m)
Cash (net of overdrafts)*
£614m
(FY 2024/25: £708m)
Adjusted operating profit
£160m
(FY 2024/25: £26m)
176,524^
People positively impacted in
FY 2025/26 through community
programmes supported
byBurberryGroup plc and
TheBurberryFoundation
22.1%
Reduction in Scope 3 emissions
sinceFY 2018/19
86%^
Key raw materials in our products
certified or responsibly sourced
inFY 2025/26 (as defined in our
Sustainable Raw Materials Portfolio)
FY 2025/26 HIGHLIGHTS
Total revenue
£2,420m
(FY 2024/25: £2,461m)
* The Group also had borrowings at 28 March 2026 of £511m (29 March 2025: £738m).
^ This metric was subject to external independent limited assurance by Ernst & Young LLP (EY). For the results of that assurance, see EY’s Independent Limited Assurance Report
andBurberry’s Sustainability Basis of Reporting FY 2025/26 on Burberryplc.com.
EMEIA
Greater China
Americas
Asia Pacific
842
662
510
381
821
670
505
363
2024/25
£m
2025/26
£m
Revenue by
region (£m)
Retail
Wholesale
Licensing
2,076
319
66
2,056
303
61
2024/25
£m
2025/26
£m
Revenue by
channel (£m)
Accessories
Womenswear
Menswear
Childrenswear
and other
841
718
732
104
837
728
701
93
2024/25
£m
2025/26
£m
Revenue by
product (£m)
Burberry Annual Report 2025/26 7

Strategic Report | A Heritage 170 Years in the Making
A HERITAGE 170 YEARS IN THE MAKING
When Thomas Burberry launched his
namesake brand in 1856, he established
alegacy that continues to influence
everything we do as a Company today.
A true visionary, Thomas Burberry pushed the boundaries
ofwhatwas possible, pioneering innovation through invention,
collaboration and a relentless drive to do better. As we mark our
170
th
year, our brand archive continues to inspire and inform the
way we tell our stories, providing a strong connection to our past
and a foundation for creative expression and experimentation.
Throughout the year, we have drawn on this legacy and the
enduring elements of our brand, from the Equestrian Knight
Design (EKD) to the Burberry Check, reflecting our heritage
inourproduct and brand experiences in ways that feel
bothauthentic and timeless.
These moments, highlighted here, represent an echo of our past
reimagined for the present, ensuring our British heritage remains
relevant for our global audiences today.
The Return of the Dual Burberry Car Coat
First introduced over 100 years ago, the Dual Burberry
carcoat was designed as a reversible garment, combining
weatherproof gabardine with tweed for versatility.
Popularised by aviator Alan Cobham during his 1926
Londonto Australia flight, itwas both practical and versatile.
Thestyle was reintroduced in our Winter 2025 men’s
collection to much acclaim from ourcustomers.
Bloomingdale’s Festive Takeover
Our relationship with Bloomingdale’s spans more
than 70 years. From the 1950s, the iconic American
retailer carried exclusive Burberry designs, with
collaborations including trench coats in the 1990s.
In2025, Burberry’s festive takeover of Bloomingdale’s
59
th
Street flagship store saw its façade wrapped
ina Burberry Check scarf illuminated by 126,000
lights. See page 22 for further details.
The Burberry Clock
Emblematic of our brand’s rich heritage, the Burberry
clock was originally installed on the façade of our
Haymarket flagship store in London in the late 1930s.
Crafted from gold leaf, cast iron and German opal glass,
the clock was removed from thebuilding in 2015 and
now forms part of our archive collection. The timepiece
continues to inspire, notably the design ofour Winter
2025 outerwear pop-ups.
Burberrys x Bloomingdale’s
label, c.1990.
Bloomingdale’s 59
th
Street, 2025.
The Burberry clock on
theHaymarket store, 1998.
The Dual Burberry car coat, Winter 2025.
Detail of the
reversible Dual
Burberry, late 1920s.
A replica of the clock at an outerwear pop-up
inChongli, Mainland China, in 2025.
Burberry Annual Report 2025/268

The Year of the Horse 2026
Celebrating the Year of the Horse, ourcampaign drew
onone of our most instantly recognisable house codes,
the EKD. Introduced around 1901 following a public
competition, the emblem is imbued with symbolism.
Theknight represents honour, the shield protection
andthe lance reform. The banner reads ‘Prorsum’,
whichtranslates from Latin to ‘Forward’. In honour of
theYearof the Horse, we introduced a dedicated capsule
collection, reinterpreting the EKD across ready-to-wear
andaccessories.
Strategic Report | A Heritage 170 Years in the Making
Gabardine Capsule Collection
Among the first activations celebrating our 170
th
anniversary was the launch of a gabardine-inspired
capsule collection reflecting our heritage and
longstanding connection to the outdoors. The landscape
motif, featured across ready-to-wear andlabelling, drew
on a 1993 archive campaign. Itsaccompanying strapline,
‘Burberrys grew out of thecountry life’, referenced our
origins in outfitting customers for outdoor pursuits.
Royal Collection Trust x Burberry
In March 2026, we created a capsule collection in
collaboration with Royal Collection Trust to mark the
centenary of Queen Elizabeth II’s birth. Honouring the
lateQueen’s long association with Burberry, the capsule
included a belted car coat in lightweight 100% certified
organic cotton gabardine. The coat was finished with
a100% certified organic silk lining featuring our House
Check in a holly green colourway, which was created
inhonour of Queen Elizabeth II and inspired bythe
OldStewart Tartan.
Knight design, 1920s.
Zhang Jingyi for the Year of
theHorse 2026, photographed
byAnton Gottlob.
Marlon Patrice for the Gabardine Capsule
2026, photographed by Tom Johnson.
Burberrys campaign, 1993.
Royal Collection Trust x
Burberry car coat, 2026.
Royal Collection Trust x Burberry
cashmere scarf, 2026.
Burberry Annual Report 2025/26 9

Strategic Report
John Glacier for ‘Burberry Festival’ 2025, photographed by Drew Vickers.
Burberry Annual Report 2025/2610

OUR PURPOSE AND VALUES
Our founding principle, that clothing should protect people from the weather, has
beenatthe heart of Burberry for 170 years. In FY 2025/26, we reimagined our purpose
and values to reflect this belief and to further embed the spirit of Burberry Forward into
our business. In doing so, we are leveraging our strengths and our rich heritage to build
aBurberry that delivers for our customers and positively impacts our people and our
communities, while protecting nature and realising our climate ambitions.
Strategic Report | Our Purpose and Values
Our purpose and values serve as the guiding framework for everything we do. Theyunderpin decisions,
inspire creativity and define the experiences we bring toboth our colleagues and our customers.
Purpose
Our purpose shapes how we lead, create and collaborate at Burberry.
Grounded in a growth mindset, our purpose honours our heritage while also serving as a commitment
to moving forward with confidence, curiosity and an open heart, whatever the weather.
TO EMBRACE THE ELEMENTS WITH OPEN ARMS
Our three core values are intrinsic to Burberry, bringing our purpose to life and guiding everything
wedo, from how we design tohow we think and evolve. They also provide a shared foundation that
unites us as one community whilecelebrating the diverse perspectives that driveour creativity.
Values
• We are a source of
protection and warmth,
no matter the forecast
• We promise quality,
function and
enduringvalue
• We strive for a space
where everyonefeels
theybelong
• We build trust with each
other and our customers
• We aim to protect the
environment, those who
work in our value chain,
and the communities
inwhich we operate
PROTECT
• We brighten up even
thecloudiest day
• We see the world as
acanvas of possibilities
• We celebrate each
other’s achievements
• We create positive
impact for one another,
our customers and our
communities
• We innovate to open
newhorizons
• We strive for excellence
in the pieces we create
• We learn from one
another and seek out
new skills to push
boundaries
• We continuously improve
ineverything wedo
EXPLORE INSPIRE
Burberry Annual Report 2025/26 11

Strategic Report | Our Business Model
We believe that new horizons open when you step outside.
For 170 years, Burberry has created clothing to protect people
from the weather. As proud champions of British creativity
andcraftsmanship on a global scale, we celebrate our unique
heritage through beautiful and innovative luxury goods designed
to delightour customers.
Our most iconic products, our outerwear and scarves, areinstantly
recognisable and have timeless appeal for people of all ages.
Source
We seek to use high-quality, certified and responsibly
sourced materials to produce luxury products that
stand the test of time. When making business
decisions, we consider the wellbeing of people
inoursupply chain and our environmental impact.
Design
We create beautiful luxury products inspired by our
heritage and elevated by our distinctive brand codes.
Based in our London headquarters, our Design, Product
and Merchandising teams work together toensure our
products delight and inspireallofourcustomers.
Make
We weave gabardine at our Burberry Mill in Keighley,
Yorkshire, and make our iconic Heritage Trench Coats
at our factory in Castleford. Our classic Burberry
Check cashmere scarves are produced in Scotland
byour long-term partner Johnstons of Elgin.
Weoperate wholly owned leather goods and technical
outerwear centres ofexcellence in Italy and work
witha network ofglobal suppliers.
Sell
We sell our products through directly operated
stores,concessions, global wholesale partners and
onBurberry.com. We provide exceptional customer
service, ensuring a seamless experience across
alltouchpoints and offer aftercare services so our
products can be loved for longer. For certain
categories, including eyewear and beauty, we work
with licensing partners to benefit from their
productand distribution expertise.
Our business model is rooted in our rich British
heritageand our desire to innovate
OUR BUSINESS MODEL
Raw cotton: the starting point for
Thomas Burberry’s revolutionary
fabric, gabardine.
Trench craft: every element
ofcreating a trench requires skill
and expertise.
Made in Yorkshire: the gabardine
inHeritage Trench Coats is woven
at the Burberry Mill in Keighley.
The Burberry Scarf Bar at our store
in Hanoi, Vietnam.
Burberry Annual Report 2025/2612

Strategic Report | Our Business Model
We strive to deliver long-term sustainable value for all our stakeholders.
Customers
We place our customers at the centre of everything we
do.We adapt how we use our brand codes, tailor how we
design our products and customise our brand activations
and store experiences to connect with our customers
inmeaningful ways. We innovate to offer customers
uniqueways to engage with our brand.
Communities
We support local communities where we operate, with
aparticular focus on driving positive change in the lives
ofyoung people from underserved communities through
thework of The Burberry Foundation. Through our global
youth empowerment programme, Burberry Inspire, we
workin partnership with local organisations to create
opportunities for young people.
Partners
We work collaboratively with our partners, which
includesuppliers, retail third parties, non-governmental
organisations (NGOs) and civil society groups, to explore
shared opportunities for development and innovation,
andto drive social and environmental improvements
forourcommunities.
Environment
Being a responsible business and working to reduce our
impact on the environment continues to be very important
to our colleagues and customers around the world.
Wemanage climate- and nature-related risks to ensure
thelong-term success and resilience of our business.
Shareholders
We aim to create sustainable long-term value for our
shareholders. We prioritise reinvesting for organic growth
and, subject to there being further capital available, we
allocate it to dividends, strategic inorganic investments
andadditional returns to shareholders. For more information
see our Capital Allocation Framework on page 32.
Governments
We engage with governments on environmental, social,
economic and governance issues. We also work with
government bodies to seek solutions to mutual challenges
and to be a positive force wherever we do business.
People
Our people are our greatest asset and we provide arich
andrewarding colleague experience. Wefoster a culture
where our people can grow andexpress their creativity with
a sense of belonging. We are also committed to protecting
and enhancing the livelihoods of people in our supply chain,
while respecting and upholding human rights.
Burberry Annual Report 2025/26 13

Strategic Report | The Global Luxury Market in 2025
THE GLOBAL LUXURY MARKET IN 2025
Global personal luxury goods market
In 2025, the global personal luxury goods market experienced
aperiod of adjustment marked by a complex macroeconomic
andconsumer environment which impacted the sector. Generating
sales of €358 billion, the market declined by 2% at current exchange
rates
2
and was broadly stable at constant exchangerates.
Although aspirational customers remained selective in their
purchases, the sector showed encouraging signs of stabilisation
across regions, with sequential improvements in the second
halfof the year. Top customers
3
continued to engage actively,
while markets such as Latin America emerged as a key growth
driver. Across all customer segments, a sustained shift towards
experiential spending supported demand in travel and leisure
destinations, highlighting the sector’s resilience andadaptability.
Key trends
In 2025, the personal luxury goods market was shaped by
acontinued shift in customer spending towards experiences,
alongside heightened discernment among aspirational customers.
Brands operated in a context ofreduced profitability, which
required greater operational discipline and investment in creativity,
craftsmanship and long-term brand equity. To navigate growing
polarisation between accessible and absolute luxury, many
brands redefined their reach through lower-entry categories
andtiered pricing strategies.
Experiences reshaping luxury consumption
Consumers continued to prioritise travel, hospitality and cultural
experiences, making experiential luxury an increasingly central
component of their spending. This trend supported performance
in key travel and resort markets and raised expectations for
immersive, service-rich brand interactions.
Value for money
After several years of strong price increases, the luxury consumer
became increasingly focused on getting more for their money.
Brands sharpened their opening price points while outlet formats
continued to play an increasingly important role in customer
acquisition. The second-hand luxury market continued to expand,
driven by interest in heritage and rarity. Brands responded
bybroadening their circular offerings, including authenticated
pre-owned products and repair services.
A polarised customer landscape
The global luxury customer base contracted slightly, as
aspirational customers became more selective in their purchases
and increasingly opted for accessible luxury. Top customers
remained resilient, representing a growing share of market value.
This trend reinforced the importance of personalisation, emotional
connection and strong brand storytelling.
Creativity, brand energy and cultural relevance
asgrowth drivers
Creativity increasingly drove brand performance, with distinctive
design, refreshed creative leadership and culturally relevant
storytelling helping to energise brands and deepen engagement,
particularly among younger audiences. Social platforms
andemerging ‘shoptainment’ formats, including immersive
experiences with shoppable content, expanded their reach
andcultural resonance.
Operational discipline and a profitability reset
Profitability across the sector was affected as brands absorbed
higher operating costs and increased discounting. Offsetting
these pressures required disciplined operations, resilient supply
chains and focused investment in the drivers of long-term brand
equity. Advances in digital tools and artificial intelligence (AI)
further supported improvements across planning, personalisation
and client engagement.
Burberry operates in the global personal luxury market with a presence
across more than 140 countries and territories
1
worldwide. The following
is an analysis of global market trends and performance within thesector
for the calendar year ending 31 December 2025.
1. Refers to the number of countries and territories in which Burberry has a store presence or ships to directly and via partners.
2. All growth rates are at current exchange and refer to 2025 compared to 2024, unless stated otherwise.
3. ‘Top customers’ refers to those who buy more than €20,000 worth of luxury goods a year.
Burberry Annual Report 2025/2614

Strategic Report | The Global Luxury Market in 2025
Product categories
Performance across product categories reflected varying levels
of price sensitivity in 2025. Soft luxury categories, including
ready-to-wear and outerwear, were affected as aspirational
consumers prioritised value, durability and timeless design.
However, performance was supported by elevated essentials,
tailoring and demand from top clients. Shoes and leather goods
remained under pressure due to heightened price sensitivity
andcompetition from sportswear and accessible luxury brands.
Small leather goods, however, continued to resonate with younger
customers, driven by personalisation and gifting trends.
Other categories were more robust. Jewellery benefited from
both its emotional appeal and investment value, while eyewear
and beauty also delivered steady growth, reinforcing their role
asaccessible entry points aligned with personal expression
andeveryday luxury.
Channels
Channel performances across the global luxury market reflected
the sector’s focus on experience, value and personalisation,
inaddition to changing travel patterns.
Monobrand store sales were flat or declined by up to 2%, with
improved conversion and enhanced experiential environments
supporting performance. Online sales remained relatively
constant, registering a performance between -1% and +1%,
supported by continued investment in personalisation, content
and service capabilities.
Outlet sales grew by 1% to 3%, supported by strong demand for
value-led assortments. Wholesale channels continued toadjust
asmultibrand distribution evolved and department storesales
declined by 4% to 6% for personal luxury goods. Travel retail was
also challenged, declining by 2% to 4%, butleading tax-free hubs
remained resilient due to strong conversion in beauty and eyewear.
Regions
The personal luxury goods market faced challenges around
theglobe during the year.
Asia
Asia saw mixed performances across the region. Mainland
Chinaremained challenging, declining by 3% to 5% at constant
exchange rates, though signs of stabilisation emerged towards
the end of the year, supported by improving sentiment in Tier 1
cities such as Beijing, Shanghai and Shenzhen. Consumers
continued to shift spending toward experiences, wellness
andleisure, while competition from local brands intensified.
Hong Kong S.A.R., China, saw renewed momentum among
younger travellers. Japan normalised after strong gains in 2024.
While tourism softened in the second half of the year, local demand
for craftsmanship-led categories remained healthy and Japan
continued to play a significant role in the second-hand
luxuryecosystem.
South Korea benefited from currency dynamics andregional
tourism, and Southeast Asia showed rising luxury awareness
inseveral markets.
Americas
The Americas’ performance was up between 2% and 4%
atconstant exchange rates. While spending early in the year
wasnegatively influenced by tariff and economic uncertainty,
demand improved as consumer confidence strengthened later
in2025 due to stock market recovery. Top customers remained
resilient and domestic purchasing in the USA increased as
favourable exchange rates encouraged a repatriation of luxury
spending. Latin America continued to grow, with particularly
strong momentum in Mexico and Brazil, supported by tourism
andexpanding retail footprints.
Europe (including the UK) and the Middle East
Europe contracted by 1% to 3% at constant exchange
rates,shaped by a strong euro, softer domestic demand and
varied tourist flows. Southern Europe benefited from resilient
leisure-led tourism, while performance in Central Europe and the
UK was more muted. The absence of tax-free shopping remained
a challenge in the UK, although Gulf and Indian visitors remained
important customer groups. The Middle East
4
and the rest of the
world grew by 6% to 8%, driven by diversified tourism, sustained
local demand andsignificant investment in luxury retail
destinations such asDubaiand Abu Dhabi.
4. Since February 2026, the region has been experiencing volatility due to the impact of ongoing Middle East conflict.
Source: Bain-Altagamma Luxury Goods Worldwide Market Study (24
th
Edition).
Burberry Annual Report 2025/26 15

Strategic Report
Jennifer Saunders for ‘’Twas The Knight Before...’ 2025, photographed by Angelo Pennetta.
Burberry Annual Report 2025/2616

Strategic Report | Our Strategy Overview
Burberry Forward: our strategy to deliver sustainable value creation
REIGNITE DESIRE
Place the
customer at
the centre of
everything
we do
1
2
3
4
BRAND: TIMELESS BRITISH LUXURY
Juxtaposition of heritage and innovation
PRODUCT: LEAD WITH OUTERWEAR
Earn authority in other categories; fewer bigger ideas
DISTRIBUTION: ALIGN DISTRIBUTION WITH
PRODUCT AND CUSTOMER STRATEGY
Prominence, productivity and profitability
PEOPLE: REIGNITE A HIGH-PERFORMANCECULTURE
Rekindle creative and commercial alchemy
OUR STRATEGY OVERVIEW
In November 2024, we launched Burberry Forward, our strategic
plantoreignite brand desire, improve performance and drive long-term
value creation. With our customers at the centre of everything we do,
weare leveraging our strengths with a disciplined approach and a range
of products to attract a broad base of luxury customers.
The progress we made during FY 2025/26 reinforces our confidence that
Burberry Forward is the right strategy for our Company. We have strengthened
brand desirability through our Timeless British Luxury expression. We have also
enhanced our product offer with our iconic outerwear and scarves at its core,
and deepened connections with our customers around the world, laying a strong
foundation for continued growth and long-term value creation.
At the same time, we are reigniting our high-performance culture, ensuring
thatwe are maximising the vast and varied talents of our people, while
upholding our commitments to social and environmental responsibility.
As we drive Burberry Forward, we will continue to place the customer
atthecentre of our business, guided by four strategic pillars.
Burberry Annual Report 2025/26 17

Brand: Timeless British Luxury
During FY 2025/26, we continued to anchor Burberry in Timeless
British Luxury, ensuring every brand moment delivered coherent
storytelling, maintained cultural relevance for global audiences
and reinforced our authority in outerwear.
In June, our ‘Burberry Festival’ campaign captured our place
atthe heart of British festival culture. Featuring globally
recognisable talent in a series of films and portraits set among
sound systems and stages, the campaign spotlighted core
summer styles and strengthened our appeal across key markets.
Featuring well-known London landmarks, our ‘Back to the City’
and the third chapter of ‘It’s Always Burberry Weather: Postcards
from London’ campaigns celebrated our outerwear with seasonal
interpretations of core categories. We expanded our talent
ecosystem to include stars with global appeal, igniting brand
desireand driving strong engagement across digital and
socialchannels.
Building on this momentum, our ‘’Twas the Knight Before...’
campaign brought a joyous rendition of the holiday season to
customers worldwide, placing our iconic products at the heart
ofa festive gathering. The campaign was complemented by
immersive experiences, such as pop-ups in locations including
Claridge’s in London and Bloomingdale’s in New York City.
Our celebratory storytelling continued into the Year of the Horse
2026 with a capsule collection featuring festive interpretations
ofthe EKD. The capsule, which resonated strongly with customers
and across social channels, was brought to life by brand
ambassadors Chen Kun, Tang Wei, Wu Lei and Zhang Jingyi.
In February, our Winter 2026 runway collection once again
celebrated the allure of London, capturing the energy of the city
after dark through a moody set depicting a rain-soaked Tower
Bridge. The elevated day-to-night collection, which featured
adark and rich colour palette, offered a bold reimagining
ofouterwear as eveningwear.
Highlighting our strength in bringing together heritage and
innovation, in March 2026 we began celebrating our 170
th
anniversary year with the launch of our ‘The Trench, Portraits
ofanIcon’ campaign.
BUSINESS UPDATE
1
Strategic Report | Business Update
FY 2026/27 Priorities
• Execute a cohesive brand expression to strengthen
theclarity and consistency of Timeless British Luxury
• Celebrate our British heritage through universally
recognisable and appealing imagery balancing city
andcountry
• Reinforce storytelling around our core icons, such as
theTrench and Burberry Check, while extending our
authority into additional pillars such as cashmere
• Deepen engagement with customers, while optimising
our investment
Winter 2026 runway show.
Burberry Annual Report 2025/2618

Strategic Report | Business Update
THE TRENCH, PORTRAITS
OFANICON
Marking our 170
th
anniversary, ‘The Trench,
Portraits of an Icon’ campaign celebrates
theongoing legacy of our iconic Heritage
TrenchCollection.
Captured by Tim Walker, the series of black-and-white
portraits featured 23 stars from the worlds of film, fashion,
music and sport, including Daisy Edgar-Jones, Kate Moss,
Kid Cudi and Wu Lei. Each star made the trench their own,
expressing their personality and individual sense of style,
with silhouettes that are unmistakably Burberry.
A documentary accompanying the campaign showed
behind-the-scenes exchanges between cast and crew.
Witha soundtrack by Blur, the film reflected the creative,
confident and outward-looking modern British spirit
embodied by the trench design.
The campaign, which began a year-long celebration of
ourbrand and heritage, was brought to life in key locations
worldwide with a series of striking window displays and
specially curated pop-up installations. Across locations,
signature silhouettes were heroed alongside large portraits
from the campaign. This enabled customers to experience
the designs alongside the campaign’s cast and reinforced
the trench’s positioning as both a functional design and
acultural statement.
Isetan Shinjuku pop-up, Japan.
Regent Street, London.
Seoul, South Korea.
Regent Street, London.
Burberry Annual Report 2025/26 19

Strategic Report | Business Update
FY 2026/27 Priorities
• Cement our authority in outerwear and scarves,
whileextending into adjacent categories including
ready-to-wear and accessories, to enhance
wardrobingopportunities
• Sharpen our pricing architecture, ensuring value for
money in a luxury context and building desirability across
‘Good, Better, Best’ price points
• Leverage our supply chain to capture growing demand
bymaking more focused bets, strengthening our speed
tomarket and ensuring product availability
• Reaffirm our longstanding commitment to British
manufacturing and craftsmanship, with the modernisation
of our historic Castleford facility
Product: Lead with Outerwear
In FY 2025/26, we maintained disciplined execution of our brand
codes across categories, emphasising our iconic Burberry Check
and EKD in both overt and subtle applications, while ensuring
synchronicity between our runway looks and commercial core.
This renewed clarity helped strengthen brand identity and
desirability, enabling us to reach a broad luxury audience.
In outerwear, we evolved our Heritage rainwear with new
silhouettes, lengths, colours and fabrics, enhancing versatility
across climates and occasions while increasing everyday
wearability. We also accelerated outerwear growth by widening
our offer across quilts and downs, with the broader assortment
resonating with customers. In scarves, we enhanced visibility
across all touchpoints, including runway shows and campaigns,
and expanded our personalisation offer to support gifting.
Across categories where we are building authority, we refined our
price architecture and strengthened our offer to broaden appeal.
In leather goods, we tested new handbag lines in various sizes
and colourways, developing the strongest-performing products
into full ranges. In shoes, we focused on functional silhouettes
with recognisable branding, particularly at entry price points.
In men’s and women’s ready-to-wear, we focused on building
aversatile essential wardrobe spanning casual and more refined
city dressing. We strengthened our entry price points with branded
universal pieces, particularly in men’s tops, and expanded our
offer across knitwear, trousers, skirts and dresses. We also
captured growth opportunities in swimwear and athleisure.
Across ready-to-wear, we drove momentum by refining fit
classifications for greater consistency and addressed regional
product needs with a variety of lengths and fits.
2
Amelia Gray for ‘It’s Always Burberry Weather: Postcards from London’ 2025,
photographed by Drew Vickers.
Burberry Annual Report 2025/2620

Distribution: Align Distribution with
Product and Customer Strategy
During the year, we continued to evolve key locations through
elevated design, improved customer journeys and curated
product expression. We enhanced the visibility of our core
categories by prioritising outerwear and scarves in high-impact
store zones, improving product density and strengthening
cross-category merchandising. Window displays and in-store
storytelling were refined to align with our campaigns and seasonal
moments, as illustrated by our ‘The Trench, Portraits ofan Icon’
campaign, which was brought to life through window displays
andpop-ups across more than 130 stores.
In parallel, we advanced the roll out of dedicated core category
destinations, including the completion of 200 Scarf Bars and
theintroduction of new Polo Galleries. Designed to enhance
navigation, shopability and consistency across regions, these
dedicated spaces are becoming key touchpoints that further
express our brand and product authority.
In outlets, we continued to optimise and elevate our network
toalign withourDistribution strategy. We updated our assortment
to drive relevance, including the introduction of full-price Icon
shops to increase Average Unit Retail (AUR).
OnBurberry.com, we enhanced storytelling, product
presentationand navigation to better reflect our brand expression,
with improvements in styling, discoverability and copy supporting
stronger engagement and consistency across channels.
Whilereducing our overall wholesale exposure, we grew our
order book with key opinion-leading wholesale partners who are
helping to introduce our brand to new customers, as demonstrated
byourfestive collaboration with Bloomingdale’s. (See page 22
forfurther information).
3
Strategic Report | Business Update
FY 2026/27 Priorities
• Drive productivity in our stores by expanding category
destinations, with dedicated in-store spaces for polos,
trenches and other key product pillars
• Accelerate our digital business by enhancing visibility
ofour core categories, and advancing our capabilities
bydeveloping contextual search
• Enhance clientelling through improved tools, more
personalised experiences and stronger service
propositions across channels
• Strengthen wholesale partnerships through aligned
assortments, consistent brand presentation and deeper
collaboration with key accounts
The Polo Gallery in Regent Street, London.
Burberry Annual Report 2025/26 21

Strategic Report | Business Update
BURBERRY CELEBRATES
THEFESTIVE SEASON
Exuding warmth and British charm, our 2025
festive activations highlighted our core categories
ofouterwear and scarves alongside bags and
accessories. Featuring an all-star cast, our
‘’Twasthe Knight Before...’ campaign captured
thejoyful bustle of the holiday season.
Directed by John Madden and featuring stars including
Jennifer Saunders and Ncuti Gatwa, the campaign film
followed party preparations in a cosy London townhouse.
Also in London, we collaborated with Claridge’s on a seasonal
activation, which saw the hotel’s traditional 16-foot tree
decorated with surplus Burberry fabrics and EKD-inspired
brass bells. A pop-up shop in the lobby featured aScarf Bar
and a curated selection of giftable items, while the hotel’s
lift was transformed with Burberry Check infestive hues
anddoormen wore Burberry scarves.
In New York City, we launched a festive takeover of
Bloomingdale’s 59
th
Street flagship. We became the first
luxury brand to take over the store’s iconic façade, wrapping
it in a larger-than-life Burberry Check scarf, while windows
on Lexington Avenue were transformed into a storybook
scene featuring the Burberry Knight. The takeover also
included an exclusive ready-to-wear and accessories capsule
collection, as well as a Scarf Bar located in The Carousel
area ofthe store.
Ncuti Gatwa for ‘’Twas The Knight Before...’ 2025, photographed
byAngelo Pennetta.
‘’Twas The Knight Before...’ 2025, photographed byAngelo Pennetta.
Bloomingdale’s 59
th
Street window, New York City.The Claridge’s Christmas Tree, designed by Burberry’s Chief CreativeOfficer.
Burberry Annual Report 2025/2622

Strategic Report
Bloomingdale’s 59
th
Street, 2025.
Burberry Annual Report 2025/26 23

FY 2026/27 Priorities
• Reinforce Talent at the Centre by investing in capabilities
that support personal and business growth and drive
strong engagement
• Foster a culture of accountability, executional excellence
and decision-making
• Scale data-driven decision-making initiatives
todrivesales
• Embed a culture of cost discipline, saving to reinvest
ingrowth
People: Reignite a
High-performance Culture
In FY 2025/26, we continued to evolve our organisation,
leadership and culture to support the delivery of our Burberry
Forward strategy.
We made organisational changes to enhance agility, strengthen
cross-functional collaboration and align our cost base with the
scale of the business, while maintaining strong levels of colleague
engagement throughout the transition. We evolved our Executive
Committee and restructured our ready-to-wear design function
todrive closer alignment between creative vision, customer
focusand commercial execution.
We continued to invest in strengthening leadership capabilities
with targeted development, clear communications and the
introduction of new learning platforms and tools to help support
leaders through the period of transition.
Investment in talent and career development remained a
priority,with a continued focus on internal mobility. During the
year, 294 colleagues were promoted and 640 moved laterally
across the business. Enhanced talent reviews and asimplified
performance framework supported succession planning and
long-term development.
We also reinforced our culture by launching our reimagined
purpose and values; strengthening engagement through listening
and new employee groups; and evolving our Inclusion strategy
with a greater focus on belonging. Employee engagement
scoresimproved or remained stable year on year, demonstrating
sustained engagement and a strong connection tothe brand
during a period of organisational change.
4
Strategic Report | Business Update
Mariana Espiga, Sourcing Coordinator, Horseferry House, London.
Burberry Annual Report 2025/2624

Strategic Report
Rubuen Bilan-Carroll for Winter Wardrobing 2025, photographed by Maxime La.
Burberry Annual Report 2025/26 25

Strategic Report | Key Performance Indicators
FINANCIAL MEASURES
Revenue growth*
This measures the appeal of the Burberry
brand to customers through all of our
sales channels.
CER Comparable store
salesgrowth*
This measures the growth in productivity
of existing stores. It is calculated as
theannual percentage increase in sales
fromretail stores that have been open
formore than 12 months. It is adjusted for
permanent closures and refurbishments,
and includes all digital revenue.
CER Adjusted operating
profitgrowth*
This measure tracks our ongoing operating
profitability and reflects the combination
of revenue growth and cost management.
flat +2% +551%
Performance
FY 2025/26 total revenue growth was flat
in the year at constant exchange rates.
Performance
FY 2025/26 comparable store sales
growth was 2% in the year.
Performance
Adjusted operating profit was £160 million
in the year, an increase of551% at constant
exchange rates fromthe prior year.
2026
2025
2024
2023
2022
flat
+5%
+23%
-15%
flat
£2,968m
£2,461m
£2,420m
£3,094m
£2,826m
2026
2025
2024
2023
2022
-1%
-12%
+2%
+7%
+18%
2026
2025
2024
2023
2022
-25%
+8%
+38%
-88%
+551%
£418m
£26m
£160m
£634m
£523m
Adjusted operating
profitmargin
This measures how we drive operational
leverage and disciplined cost control,
with thoughtful investment for future
growth, building the long-term value
ofthe brand.
Adjusted diluted EPSgrowth
Growth in adjusted diluted EPS reflects
increase in profitability of the business,
and movement in the tax rate.
Adjusted Group ROIC
Adjusted Group ROIC measures the
efficient use of capital on investments.
Itis calculated as the post-tax adjusted
Group operating profit divided by average
adjusted operating assets over the period.
6.6% +202% 5.5%
Performance
Adjusted operating margin was 6.6%
inthe year, an increase from 1.0%
intheprior year.
Performance
Adjusted diluted EPS was 15.2p in the year,
an increase of 202% from the prior year.
Performance
Adjusted Group ROIC increased to 5.5%
in the year, primarily due to the increase
in net operating profit after tax.
2026
2025
2024
2023
2022
14.1%
1.0%
6.6%
20.5%
18.5%
2026
2025
2024
2023
2022
-40%
+30%
+40%
-120%
+202%
73.9p
(14.8)p
15.2p
122.5p
94.0p
2026
2025
2024
2023
2022
15.3%
1.0%
5.5%
28.6%
24.6%
* At constant exchange rates and adjusted for the 53
rd
week in FY 2021/22.
Details of alternative performance measures are shown on pages 30 and 31 and on page 239 for Adjusted Group ROIC.
Burberry Annual Report 2025/2626

Strategic Report | Financial Review
FINANCIAL REVIEW
This financial year marks a meaningful inflection point for Burberry. We have returned to profitable comparable
sales growth, with a strong fourth quarter driven by momentum in Greater China and Americas. Our strategy
isworking and there are clear opportunities for further growth. As we look ahead, while mindful of the uncertain
macro-economic environment, our focus is on disciplined execution of Burberry Forward. With increased brand
relevance and product authority, we are moving forward with conviction, firmly positioning Burberry for
long-termvalue creation.
Summary Income Statement
Period ended
£ million
52 weeks ended
28 March 2026
52 weeks ended
29 March 2025
YoY % change
Reported FX
YoY % change
CER
Revenue 2,420 2,461 (2) flat
Cost of sales (777) (923) (16) (14)
Gross profit 1,643 1,538 7 9
Gross margin 67.9% 62.5% 540bps 530bps
Adjusted net operating expenses* (1,483) (1,512) (2) flat
Adjusted net operation expenses as a % of sales* 61.3% 61.5% (20bps) (40bps)
Adjusted operating profit* 160 26 528 551
Adjusted operating margin* 6.6% 1.0% 560bps 570bps
Adjusting operating items (45) (29) 54 54
Operating profit/(loss) 115 (3) 3,370
Operating margin 4.8% (0.1%) 490bps
Net finance expense (66) (63) 7
Profit/(loss) before taxation 49 (66) 175
Taxation (29) (9) 231
Non-controlling interest 1 – n/a
Attributable profit/(loss) 21 (75) 128
Adjusted profit/(loss) before taxation* 94 (37) 356
Adjusted diluted earnings/(loss) per share (pence)* 15.2 (14.8) 202
Diluted earnings/(loss) per share (pence) 5.9 (20.9) 128
Weighted average number of diluted ordinary shares (millions)** 360.3 358.4 1
* Excludes adjusting items. All items below adjusting operating items on a reported basis unless otherwise stated.
** As the Group incurred an attributable profit for FY 2025/26, the effect of the increase in diluting shares was dilutive and therefore included in the calculation of diluted profit per share
for the period. As the Group incurred an attributable loss for FY 2024/25, the effect of 0.9m dilutive shares was antidilutive and therefore not included in the calculation of diluted loss
per share for the period. For detail see note 10 of the Financial Statements.
Revenue
Revenue of £2,420 million, was flat at constant exchange rates and -2% at reported rates. Within this, retail comparable sales were
+2% in the year showing continued improvement over the course of the year.
Gross Margin
Gross margin was 67.9%, an increase of 530bps at constant exchange rates and 540bps at reported rates. This was driven
byahigher quality of sales, and a recovery from the prior year’s inventory reset.
Operating Profit
Adjusted operating profit was £160 million, an increase of £134 million from £26 million in the prior year. This was primarily due
tothe improvement in gross margin.
Adjusted net operating expenses of £1,483 million were flat at constant exchange rates and -2% at reported rates.
Reported operating profit was £115 million after £45 million of adjusting items relating to restructuring charges due to the Burberry
Forward transformation programme.
Burberry Annual Report 2025/26 27

Strategic Report | Financial Review
Financial Performance
Revenue by channel
Period ended
£ million
52 weeks
ended
28 March
2026
52 weeks
ended
29 March
2025
YoY %
change
Reported
FX
YoY %
change
CER
Retail 2,056 2,076 (1) 1
Comparable store
sales growth 2% (12%)
Wholesale 303 319 (5) (4)
Licensing 61 66 (7) (9)
Revenue 2,420 2,461 (2) flat
Comparable store sales grew 2% in the year, a return to positive
growth following -12% in the prior year. The contribution from
space was a reduction of 1%, leading to a 1% growth in retail sales
at constant exchange rates and a 1% decline at reported rates.
Comparable store sales growth by region
• EMEIA was flat in the year with growth in the first half of the
year offset by a decline in the second half due to the continued
impact of reduced tourist activity in the region and the Middle
East conflict towards the end of the year.
• Americas grew by 4% in the year with the performance
improving towards achieving 10% growth in the final quarter
ofthe year supported by local spend.
• Greater China grew by 4% in the year with growth of 8%
inthesecond half of the year offsetting declines in the first
half,driven by local consumers spending within the region.
• Asia Pacific grew 2% in the year, with growth of 4% in the
second half of the year offsetting a decline in the first half.
South Korea remained strong supported by local spend and
increased tourist spend, particularly from Chinese visitors,
while Japan was impacted by the decline of tourists.
Comparable store analysis by product
• Outerwear outperformed in all regions in the year.
• Total accessories were positive in the year, with scarves
outperforming throughout the year and leather goods
sequentially improving in the second half of the year.
Store footprint
We opened 9 stores in the year and closed 21, with 410 directly
operated stores as at 28 March 2026.
Store portfolio
Directly operated stores
Franchise
stores Stores
Con-
cessions Outlets Total
At 29 March 2025 229 139 54 422 33
Additions 6 3 – 9 –
Closures (13) (8) – (21) (6)
At 28 March 2026 222 134 54 410 27
Store portfolio by region*
At 28 March 2026
Directly operated stores
Franchise
stores Stores
Con-
cessions Outlets Total
Asia Pacific 29 82 11 122 10
Greater China 92 8 11 111 –
EMEIA 44 37 17 98 17
Americas 57 7 15 79 –
Total 222 134 54 410 27
* Excludes the impact of pop-up stores.
Wholesale
Wholesale revenue declined 4% at constant exchange rates and
5% at reported rates in the year with the second half of the year
returning to growth of 3% at constant exchange rates.
Licensing
Licensing revenue decreased 9% at constant exchange rates
and7% at reported rates.
Operating Profit
Adjusted Operating Profit
Adjusted operating profit was £160 million in the year with
anadjusted operating margin of 6.6%, an improvement from
anadjusted operating margin of 1.0% in the prior year.
Gross margin was 67.9% up 530bps at constant exchange
ratesand 540bps at reported rates. The gross margin benefited
from better sell through of product throughout the year, a highly
disciplined approach to inventory purchase as well as a tail
winddriven by one-off actions taken in the prior year during
ourinventory reset. Gross finished goods inventory declined
by13% at constant exchange rates and reported rates as
of28 March2026.
Adjusted net operating expenses was flat at constant exchange
rates and declined 2% at reported rates. This was driven by
tightcost control alongside progress on our cost savings plan.
FXwas a headwind in the year, impacting adjusted operating
profit by £6 million.
Burberry Annual Report 2025/2628

Strategic Report | Financial Review
Adjusting items
Period ended
£ million
52 weeks ended
28 March 2026
52 weeks ended
29 March 2025
Restructuring costs (45) (29)
Adjusting items (45) (29)
Restructuring costs of £45 million (FY 2024/25: £29 million) were
incurred, arising primarily as a result of the Burberry Forward
transformation programme initiated last year. The costs principally
related to redundancies and consultancy costs andwere
recorded in operating expenses.
Net Finance Charge
The net finance charge for the year was £66 million
(FY 2024/25: £63 million), which includes finance income of
£23 million (FY 2024/25: £25 million) offset by finance expense on
borrowings and other of £42 million (FY 2024/25: £39 million) and
interest onlease liabilities of £47 million (FY 2024/25: £49 million).
Taxation
The Group’s adjusted effective tax rate was 43% (FY 2024/25: -43%)
and the reported effective tax rate was 59% (FY 2024/25: -13%).
Cash Flow and Leverage
Summary statement of cash flows
The following table is a representation of the cash flows, excluding
financing cash flows to align with our definition of free cash flow.
Period ended
£ million
52 weeks ended
28 March 2026
52 weeks ended
29 March 2025
Adjusted operating profit 160 26
Depreciation and amortisation 375 413
Working capital 41 75
Other including adjusting items 6 12
Cash generated from operating
activities 582 526
Payment of lease principal and
related cash flows (230) (225)
Capital expenditure (113) (151)
Proceeds from disposal
ofnon-current assets – 12
Interest (53) (54)
Tax (45) (43)
Free cash flow 141 65
Free cash flow was £141 million in the year (FY 2024/25: £65 million).
Themajor components were:
• Cash generated from operating activities increased
by£56 million to £582 million due primarily to an increase
inadjusted operating profit
• Working capital inflow of £41 million (FY 2024/25: £75 million
inflow) driven by an increase in payables and lower
inventorylevels
• Capital expenditure of £113 million (FY 2024/25: £151 million)
slightly below guidance due to phasing of investments into FY27
Cash net of overdrafts on 28 March 2026 was £614 million
(29 March 2025: £708 million). On 28 March 2026, borrowings
were £511 million (29 March 2025: £738) reflecting the £450 million
bond raised in 2024 and the £75 million Revolving Credit
Facility(RCF). The separate £300 million RCF remains undrawn.
The£300 million sustainability bond matured in September 2025
and was repaid. With lease liabilities of £955 million, net debt
inthe period was £852 million (29 March 2025: £1,111 million).
Net Debt/Adjusted EBITDA was 1.6x. The decrease in leverage
from 2.3x at 29 March 2025 was driven by higher profitability
andreduction in net debt.
Period ended
£ million
52 weeks ended
28 March 2026
52 weeks ended
29 March 2025
Adjusted EBITDA 549 483
Cash net of overdrafts (614) (708)
Borrowings 511 738
Lease debt 955 1,081
Net Debt* 852 1,111
Net Debt/Adjusted EBITDA 1.6x 2.3x
* For a definition of adjusted EBITDA and net debt see page 31.
Burberry Forward
The Burberry Forward strategy was launched in November 2024
and is focused on reigniting brand desire, improving performance
and driving long-term value creation.
The transformation programme incurred charges of £29 million
inFY 2024/25 and a further £45 million in the current year, asa
result of the implementation of organisational changes to enhance
collaboration across our business, increasing our agility, driving
efficiency while protecting investment in our customer focusing
areas. We expect to incur a further £5 million ofrestructuring
charges in FY 2026/27.
These changes have unlocked £80 million of savings in the
current year and annualised cost savings are expected to be
£100 million for FY 2026/27.
Outlook
As we look ahead, we are encouraged by the progress this year
and will build on this to drive performance and deliver sustainable
long-term value.
We expect to make further progress on our financial ambitions,
including delivering revenue growth and margin expansion.
Weare, however, mindful of the uncertain geopolitical and
macro-economic environment and its potential impact on consumer
confidence. The impact of retail space is expected tobe broadly
stable next year with capital expenditure ofaround£120 million.
Burberry Annual Report 2025/26 29

Strategic Report | Financial Review
Alternative performance measures
Alternative performance measures (APMs) are non-GAAP measures. The Board uses the following APMs to describe the Group’s financial
performance and for internal budgeting, performance monitoring, management remuneration target setting and external reporting purposes.
APM Description and purpose GAAP measure reconciled to
Constant
Exchange
Rates (CER)
This measure removes the effect of
changes in exchange rates compared
tothe prior period. The constant exchange
rate incorporates both the impact of
themovement in exchange rates on the
translation of overseas subsidiaries’
resultsand also on foreign currency
procurement and sales through the
Group’sUK supply chain.
Results at reported rates.
Comparable
sales
The year-on-year change in sales
fromstores trading over equivalent time
periods and measured at constant foreign
exchange rates. It also includes online
sales. This measure is used to strip out the
impact of permanent store openings and
closings, or those closures relating to
refurbishments, allowing a comparison
ofequivalent store performance against
the prior period.
Retail Revenue:
Period ended YoY%
52 weeks ended
28 March 2026
52 weeks ended
29 March 2025
Comparable sales 2% (12%)
Change in space (1%) 1%
CER retail 1% (11%)
FX (2%) (2%)
Retail revenue (1%) (13%)
Adjusted
Profit/(loss)
Adjusted profit/(loss) measures
arepresented to provide additional
consideration of the underlying
performance of the Group’s ongoing
business. These measures remove the
impact of those items which should be
excluded to provide a consistent and
comparable view of performance.
Reported Profit:
A reconciliation of reported profit/(loss) before tax to adjusted
profit/(loss) before tax and the Group’s accounting policy for
adjusted profit/(loss) before tax are set out in the financial statements.
Free Cash
Flow
Free cash flow is defined as net cash
generated from operating activities less
capital expenditure plus cash inflows from
disposal of fixed assets and including cash
outflows for lease principal payments and
other lease related items.
Net cash generated from operating activities:
Period ended
£m
52 weeks ended
28 March 2026
52 weeks ended
29 March 2025
Net cash generated from operating
activities 484 429
Capex (113) (151)
Lease principal and related cash flows (230) (225)
Proceeds from disposal
ofnon-currentassets – 12
Free cash flow 141 65
Burberry Annual Report 2025/2630

Strategic Report | Financial Review
APM Description and purpose GAAP measure reconciled to
Cash
Conversion
Cash conversion is defined as free cash
flow pre-tax/adjusted profit/(loss) before
tax. It provides a measure of the Group’s
effectiveness in converting its profit/(loss)
into cash.
Net cash generated from operating activities:
Period ended
£m
52 weeks ended
28 March 2026
52 weeks ended
29 March 2025
Free cash flow 141 65
Tax paid 45 43
Free cash flow before tax 186 108
Adjusted profit/(loss) before tax 94 (37)
Cash conversion 197% n/a
Net Debt Net debt is defined as the lease liabilities
recognised on the balance sheet plus
borrowings less cash net of overdrafts.
Cash net of overdrafts:
Period ended
£m
As at
28 March 2026
As at
29 March 2025
Cash net of overdrafts 614 708
Lease liabilities (955) (1,081)
Borrowings (511) (738)
Net debt (852) (1,111)
Adjusted
EBITDA
Adjusted EBITDA is defined as operating
profit/(loss), excluding adjusting operating
items, depreciation and impairment of
property, plant and equipment, depreciation
and impairment of right of use assets and
amortisation and impairment of intangible
assets. Any depreciation, amortisation or
impairment included in adjusting operating
items are not double counted. Adjusted
EBITDA is shown for the calculation of
NetDebt/EBITDA for our leverage ratios.
Operating profit/(loss):
Period ended
£m
52 weeks ended
28 March 2026
52 weeks ended
29 March 2025
Operating profit/(loss) 115 (3)
Adjusting operating items 45 29
Amortisation and impairment
ofintangible assets 48 58
Depreciation and impairment
ofproperty, plant and equipment 114 122
Depreciation and impairment
ofright-of-use assets 227 277
Adjusted EBITDA 549 483
Burberry Annual Report 2025/26 31

Strategic Report | Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK
Our strategy and targets are governed by our Capital
AllocationFramework, which we use to prioritise the use of cash.
This framework addresses the investment needs of the business,
dividend payments and additional returns to shareholders.
Theframework also seeks to maintain an appropriate capital
structure for the business and a strong balance sheet with
aninvestment grade credit rating.
While our capital allocation principles remain unchanged, given
the current trading environment, in the short term we are taking
aprudent approach to conserve cash and secure liquidity to
supportthe business through the Burberry Forward transformation.
Thishas temporary implications for the application of the
framework, including not declaring a dividend in respect
ofFY2025/26 and keeping future capital returns underreview.
Weintend to return to paying a dividend as soon as possible.
Net Debt/Adjusted Earnings Before Interest, Taxes, Depreciation
and Amortisation (Adjusted EBITDA) was 1.6x atFY 2025/26
(FY2024/25: 2.3x) on a rolling 12-month period, above our
targetrange of 0.5x to 1.0x. We continue to be a cash generative
business and are comfortable with this current leverage position
which is consistent with our policy to maintain an investment
grade credit rating. We will deliver sustainable profitable growth
and drive cash flow under our strategic plan, which we are
confident will organically de-lever the business toour target
range over time. The diagram below summarises the key priorities
of our framework.
Reinvest for
organicgrowth
Capital spend across new
stores, refurbishments
andnew fixtures in store;
ITinfrastructure, including
digital; and the supply chain.
Spend includes investment
inour Burberry Beyond
sustainability strategy.
Progressive
dividendpolicy
Subject to there being
capitalavailable after we
have reinvested for organic
growth, our second priority
isthe payment of a dividend.
The absolute amount of
dividend per share will
remainstable or increase
ona full-year basis, broadly
targeting a pay-out of around
50% of adjusted earnings
pershare at reported rates
ofexchange. The interim
dividend pay-out would
typically be 30% of the
absolute value of the prior
year full-year dividend.
Inorganic strategic
investment
Our third priority for capital
allocation is investment in
acquisitions to complement
our business activities, which
are expected to be infrequent.
Return excess cash
to shareholders
After allocation of capital
tothe first three priorities
ofourframework, any
excesscash would be
returned toshareholders.
Thedetermination of excess
cashis based on a leverage
range of 0.5x to1.0x after
considering future cash
generation and the
externalenvironment.
Maintain a strong balance sheet with an investment grade credit rating
Review the principal risks of the Group and relevant financial parameters, both historical and projected, including liquidity, net debt
andmeasures covering balance sheet strength.
These risks and financial parameters are considered by the Board when assessing the viability of the Group, as set out on pages 95 to 105.
Capital structure metrics FY 2025/26 FY 2024/25
Cash net of overdrafts £614m £708m
Lease liability (£955m) (£1,081m)
Borrowings (£511m) (£738m)
Net debt (£852m) (£1,111m)
Net debt/EBITDA 1.6x 2.3x
1 2 3 4
Burberry Annual Report 2025/2632

OUR PEOPLE
AND CULTURE
Strategic Report | Our People and Culture
At Burberry, our people and culture underpin how
wedeliver for our customers, our brand and our
shareholders. We are building a high-performance
culture that encourages creativity and collaboration,
and enables colleagues to do their best work.
Guided by our reimagined purpose, To Embrace the
Elements with Open Arms, we bring together diverse
perspectives, skills and expertise to create exceptional
luxury products and experiences. Our purpose
alsoinforms the standards of behaviour we expect,
howwelead and how we make decisions across the
business. The Board oversees and reviews how our
culture alignswith our purpose and strategic priorities
(seeMonitoring our Culture on page 116).
As a global organisation operating in more than 140 countries and
territories, we draw from our teams’ breadth of experience, ideas
and talent. Our heritage of innovation inspires our colleagues to push
boundaries, raise standards and help shape the futureofluxury.
This section outlines how we are bringing our purpose and
valuesto life, strengthening our culture and evolving the way
wedrive Burberry Forward. It highlights how we invest inleadership,
build capabilities and amplify colleague voices while fostering
growth, inclusion and a sense of belonging, with the aim
ofenabling our people to realise their potential.
Following its launch in FY 2024/25, we continued
toembed Burberry Forward into our People strategy
during FY 2025/26. With the aim of fostering a culture
that maximises the creativity and talent of our people,
ourroadmap has four pillars:
REIGNITING A
HIGH-PERFORMANCE CULTURE
Organising for Growth
Authentic Leadership
2
Talent at the Centre
3
Purpose and Belonging
4
1
Hand-stitched: a trench collar requires up to 270 stitches to create a fluid curve.
Burberry Annual Report 2025/26 33

Strategic Report | Our People and Culture
3. Talent at the Centre
The delivery of Burberry Forward is powered by our people.
Investing in their growth supports our collective efforts towards
realising Burberry’s full potential. To reignite our high-performance
culture, we have expanded opportunities for colleagues to build
skills and shape their own career paths. Tosupport this, we have
articulated our careers and growth philosophy, increased visibility
of internal career opportunities and equipped colleagues with
tools to drive their own careers and foster a learning mindset.
During the financial year, 294 colleagues were promoted internally
and 640 colleagues made lateral career moves across the business
globally, reflecting our continued focus on internal mobility and
the development of talent across markets, regions and functions.
In FY 2025/26, we evolved our talent review and performance
management processes to support succession planning and
long-term development. Executive Committee talent reviews
wereintroduced and cascaded across the organisation to
increase transparency and consistency in how talent is identified,
assessed and matched to career progression opportunities.
Guided bycolleague feedback, we also simplified our performance
management approach with the aim of supporting aculture that
isin line with our strategy.
Our UK Internal Apprenticeship Programme remains a key
pathway for colleague development. Co-designed with our people
and delivered with external training partners, the programme
enables UK-based colleagues to explore and develop skills across
more than 30 disciplines, working towards qualifications up
todegree level while remaining in full-time roles. In FY 2025/26,
wesustained a high standard of support for apprentices.
Weachieved a 77% increase in programme completions and
18%of our Apprenticeship Programme alumni were promoted
intonew roles in the period.
1. Organising for Growth
In FY 2025/26, following a period of significant underperformance,
and against a background of macroeconomic uncertainty, we
announced changes to our ways of working and organisational
structure that impacted circa 1,700 roles across the Company.
These changes were necessary to align our cost base with
thescale of the business, while protecting our investment
inconsumer-facing areas. The changes also enabled greater
collaboration and an increase in agility as we focused on returning
the business to sustainable and profitable growth for the long term.
Weevolved our Executive Committee to further sharpen our focus
on executional excellence. The creation of the Chief Operating
and Supply Chain Officer role strengthened our end-to-end product
operating model, while the introduction of the Chief Customer
Officer role supported our aim of expanding and deepening
customer relationships. Reflecting the calibre of talent in our
pipeline, both positions were filled internally. We also appointed
our Regional Presidents to the Executive Committee, for more
alignment between leadership decisions and our customers.
To bolster both our creative and commercial focus, we
transitioned our ready-to-wear design organisation from a combined
structure todedicated Womenswear and Menswear teams.
Thismodel enables clearer accountability and greater alignment
between ourrunway vision and the collections we deliver.
Throughout the transition, we prioritised colleague engagement
through more frequent global, functional and regional town halls,
employee listening forums and regular leadership communications.
Supported by the Executive Committee, the CEO used these
forums to provide clarity, guide leaders through the changes
andshare progress on Burberry Forward.
2. Authentic Leadership
Throughout the year, we focused on cultivating authentic
leadership, preparing our leaders to inspire colleagues and
guideteams as we continued to implement our Burberry Forward
strategy. As part of our B:Leaders Framework, our development
approach for senior leaders at Director level and above, we
hosted regional workshops which focused on leading through
transformation. These were supplemented with regular
communications from leaders to reinforce strategic priorities.
Wealso launched the Leadership Edition, an interview series
featuring Executive Committee members. Highlighting diverse
paths to leadership, the series also helps colleagues get to know
senior leaders better.
In October 2025, we introduced the B:Managers Hub, a learning
and development platform for Burberry line managers. Combining
skills-based virtual learning with a Line Manager Playbook,
itpromotes a consistent, high-quality management experience
andfurther strengthens our high-performance culture.
Burberry Annual Report 2025/2634

Strategic Report | Our People and Culture
Retail Forward
In FY 2025/26, we launched Retail Forward, a series of
programmes for our customer-facing teams thattranslate
our strategic priorities into tangible in-store actions.
Byproviding clear direction and practical tools, Retail
Forward empowers colleagues to navigate a rapidly
evolving retaillandscape and drive performance. It also
connects them more closely to our purpose, reinforcing
their role indelivering our strategy and fostering a greater
sense ofbelonging across the business.
4. Purpose and Belonging
In October 2025, we shared our reimagined purpose and
valuesat a dedicated global town hall, marking an important step
in strengthening a culture of belonging across Burberry. As our
purpose and values serve as the guiding framework for everything
we do, a network of champions was tasked with bringing our
values to life for their teams and business areas across Burberry.
The launch was further supported by a series of activations,
including a programme for our retail teams.
United by our purpose, we are creating more opportunities for
ourpeople to come together. We introduced two new employee
engagement groups to support cultural alignment, engagement
and communication across the organisation.
Our colleagues’ voices remain central to a culturewhere everyone
can thrive. Through our B:Heard listening framework, we gathered
insight from our Pulse and annual Employee Engagement Surveys
in FY 2025/26. (For further information see page 116). Scores for
comparable statements from FY 2024/25 improved or remained
stable, reflecting sustained engagement and a strong connection
to Burberry, evenduring aperiod of organisational change.
Tofurther embedlistening across the colleague experience,
weintroduced targeted surveys at pivotal moments for our
people, such as afterthey have been promoted and when they
return to work afterlong-term sicknessor parental leave.
Building on the foundations of our Diversity, Equity and Inclusion
Policy and programmes, we are evolving our approach to focus
more explicitly on belonging, which is resonating strongly across
our global workforce. This starts with listening to our colleagues.
In March 2026, we launched an internal campaign to help define
what belonging at Burberry means, bringing together colleague
perspectives into a shared definition aligned with our reimagined
purpose and values. In FY 2026/27, we will embed this throughout
our Human Resources processes, from talent acquisition and
development to engagement and performance, to support
anenvironment where colleagues can continue be themselves
andfeel valued and part of our brand.
Burberry at the Iguatemi São Paulo mall, Brazil.
Burberry Annual Report 2025/26 35

Strategic Report | Sustainability at Burberry
SUSTAINABILITY
AT BURBERRY
SUSTAINABILITY INFORMATION
Burberry Beyond 37
Value Chain 37
Section 172 (1) Statement and Stakeholder Engagement 38
Double Materiality Assessment 41
Governance and Management 43
Basis for Preparation 45
ENVIRONMENTAL DISCLOSURES
Climate Change 46
Chemical and Pollution Management 60
Water Conservation 62
Biodiversity and Ecosystems 65
Resource Use and Circular Economy 71
SOCIAL DISCLOSURES
Our Workforce 76
Occupational Health and Safety 79
People in our Supply Chain 82
Community Investment 87
BUSINESS CONDUCT DISCLOSURES
Anti-Bribery and Corruption 92
Animal Welfare 93
At Burberry, we endeavour to act responsibly with respect to climate and nature,
the communities in which we operate and those employed within our business
andwider supply chain.
Made in the UK: Heritage Trench Coats have been manufactured in Castleford, Yorkshire, for over 50 years.
Burberry Annual Report 2025/2636

SUSTAINABILITY INFORMATION
Strategic Report | Sustainability at Burberry
In FY 2025/26, we evolved our Burberry Beyond strategy with the
refinement of key targets across climate (page 55), deforestation
(page 68), packaging (page 73) and traceability (page 68) toreflect
our learnings and progress since Burberry Beyond was launched
in FY 2022/23. Further details of the revisions to the respective
targets are detailed in the relevant sections on pages46 to 75.
2. Value chain
Our Burberry Beyond strategy addresses material sustainability-
related IROs across our value chain. Our upstream value chain
covers activities involved in the development and manufacture
ofour products, including raw material production and processing.
While the majority of these activities take place with a network
ofsupply chain partners, our internal manufacturing sites are
alsoincluded in the scope ofthe upstream value chain. Our own
operations consist ofBurberry-managed sites and activities,
including our stores, offices and distribution centres. Finally, our
downstream value chain includes retailing and purchasing, as well
as the use, aftercare and end-of-life phases of our products.
Details of our material sustainability impacts, risks and
opportunities as identified in our double materiality assessment
(DMA) can be found on pages (46 to 103).
1. Burberry Beyond
Our business model relies upon the products we create and
thepeople who make them. From the materials we source to
theaftercare services we provide, we strive to deliver long-term
sustainable value for our stakeholders across the life cycle
ofourproducts. To deliver on this commitment, we aim to build
aresilient and sustainable value chain which supports the
business through our Sustainability strategy, Burberry Beyond.
Guiding how we manage material sustainability-related impacts,
risks and opportunities (IROs) within our value chain, Burberry
Beyond’s Product and Planet pillars, which are the subject
ofourEnvironmental Disclosures section (pages 46 to 75),
focuson strengthening Burberry’s resilience by minimising our
environmental footprint and taking a responsible approach to
howwe craft and package our products. Burberry Beyond’s People
and Community Investment pillars, which set out our approach
with respect to our people, the people in our supply chain and the
communities we impact, are addressed in our Social Disclosures
section from pages 76 to 90.
Upstream
value
chain
Own
operations
Tier Tier name Tier scope Example facility or process
Tier 4 Raw material
producers
Extraction and
production of raw
orsemi-raw materials
• Raw material extraction
• Agriculture/farming
• Mechanical fibre processing
(for example, ginning, which is the process
ofseparating cotton fibres from cotton seeds)
Tier 3
Raw material
processors
Treatment of fibre
oryarn
• Spinner (yarn supplier)
• Fibre dyer or scourer
• Unfinished leather supplier
Tier 2
Raw material
suppliers
Raw material
processes
• Trim supplier
• Fabric supplier
• Finished leather supplier
• Weaver
• Converter
Tier 1
Finished
goods
suppliers
Manufacturing of
finished products
• Factory where the cutting, sewing and
finishingof a garment occurs, including
internalmanufacturing
Tier 0
Company-
managed
assets
Physical sites
operated by Burberry
• Offices
• Retail stores
• Distribution centres, hubs and local
fulfilmentcentres (LFCs)
Retailing and
distribution
Distribution, marketing
and purchasing
ofproducts
• Customers
• Sales channels (licensees,
franchises,wholesalers)
Use phase Consumer use
ofproducts
• Customer care
End of life Product end-of-life
phase
• Prevent, reduce, reuse, recycle and recovery
Our value chain
Downstream
valuechain
Burberry Annual Report 2025/26 37

Strategic Report | Sustainability at Burberry
3. Section 172 (1) statement and stakeholder engagement
Section 172 (1) statement
In accordance with the Companies Act 2006 (the Act), the Directors provide this statement to describe how they have engaged with
andhad regard to the interests of our key stakeholders when performing their duty to promote the success of the Company, under
section 172 (1) of the Act.
The Board is aware of its obligations, both collectively and individually, to promote the success of the Company for the benefit of its
stakeholders. When making decisions, each Director ensures that they act in the way they consider, in good faith, would most likely
promote Burberry’s success for the benefit of its members as a whole, and in doing so has regard (among other matters) to the issues
setout below.
Section 172 (1) factor
(a) The likely
consequences of any
decision in the long term
The decisions taken by the Directors are aimed at ensuring Burberry has a stable and viable future.
Thekey decisions taken by the Board during FY 2025/26, namely the rearticulation of Burberry’s purpose
and values, the promotion of Burberry’s financial stability and our approach to sustainability, demonstrate
how the Directors considered the decisions’ likely consequences and how their outcomes would support
Burberry in the long term. The Directors’ considerations included macroeconomic and geopolitical
factors, trends in the global personal luxury goods market, and principal and emerging risks and how
these might impact the business.
Further information on the global luxury market can be found on page 14.
Further information on principal risks can be found on page 97.
Further information on key decisions can be found on page 119.
(b) Interests
ofemployees
Burberry’s people, whether direct colleagues or people in the supply chain, are fundamental
tothesuccess of our business. The Board’s decisions are aimed at fostering a high-performance culture
withBurberry’s values at the core. The Board’s decisions to re-articulate Burberry’s purpose and values
and implement a new organisational model support the long-term future of our people.
Further information on our people can be found on page 33.
Further information on the Burberry Forward pillar to Reignite a High-performance Culture can be found
onpage 24.
Further information on how the Board engages with employees can be found on page 115.
(c) Fostering the
company’s business
relationships with
suppliers, customers
andothers
Customers are at the centre of everything we do at Burberry. Reflecting this, the Board monitors brand
sentiment, customer engagement and trading performance. As a luxury goods business, our supply chain
is core to our success and we seek to promote and apply ethical conduct and principles of business
engagement in our relationships with our suppliers. The Board monitors these relationships through
reports from executive management.
Further information on how we engage with our customers can be found on page 39.
Details of the Burberry Forward strategy can be found on page 17 as well in the Business Update section
on pages 18 to 24.
Further information on supplier relationships can be found on page 40.
(d) Impact of operations
on the community and
environment
Acting responsibly with respect to the environment and the communities in which we operate
isakeyfocus for Burberry, as reflected in the Board’s decision to approve new sustainability targets
andour Climate Transition Plan.
Further information on the environment and the communities in which we operate can be found
intheSustainability at Burberry section from pages 36 to 90.
(e) Maintaining
areputation for
highstandards of
businessconduct
The Board periodically reviews and approves Burberry’s Code of Conduct and other key policies aimed
atupholding the highest standards of business conduct.
Further information on business conduct at Burberry can be found on pages 91 to 93.
(f) Acting fairly between
members of the
Company
When making decisions, the Board considers which outcomes will support Burberry’s long-term future
and promote the interests of the Company’s members as a whole. In this way, Burberry acts fairly
between members.
Further information on the Board’s engagement with shareholders can be found on page 39.
Burberry Annual Report 2025/2638

Stakeholder Why we engage How we engage
Example outcomes
oftheengagement
Customers
A broad range of luxury
customers who buy and
experience Burberry
through our global network
of directly operated stores,
concessions, wholesale
partners and Burberry.com.
Ourcustomers are
fundamental to our long-term
success. Weaim to inspire
anddelight them with luxury
products ofexceptional quality.
We provide exemplary
customer service through
aseamless omnichannel
experience and facilitate
meaningful connections
between our customers
andour brand.
We engage with our
customersthrough messaging
on products, marketing
campaigns, social media,
Company websites, global
consumer research and
in-store events.
The Board receives customer
insights through presentations
from the CEO and newly
appointed Chief Customer
Officer as well as regional
Presidents. Board members
regularly visit store locations
globally and attend special
events such as store events
and runwayshows.
During FY 2025/26, the whole
Board visited stores in the UK,
and individual Board members
visited stores in the USA,
Europe and Asia as well as
attending the Summer 2026
and Winter 2026 runway
showsin London.
The Board approved the
development of a holistic
customer strategy designed
todrive customer growth
andloyalty through enhanced
customer experience and
acustomer-first culture.
Implementation of the strategy
began in FY 2025/26 and
included bringing all customer
functions under the Chief
Customer Officer, improving
clientelling practices,
introducing customer Key
Performance Indicators (KPIs)
and training of retail teams.
While we are still in the early
stages of our transformation,
our customers have responded
positively to the changes
wehave made as part
ofBurberryForward.
Shareholders
Individuals and institutions
who own shares in
Burberry and invest in the
Company for long-term
sustainable value.
By investing in Burberry,
ourshareholders support the
Company’s ability to operate
and plan for the long term
through our Group’s strategy.
Weareopen and transparent
with our shareholders about
our strategy and business
performance, which enables
them to make informed
decisions.
We engage directly with
shareholders through quarterly
trading updates, results
presentations, investor
meetings and the AGM.
Board members attend
investormeetings and results
presentations. Shareholders
have the opportunity to engage
directly with the Board at
theAGM. The Board reviews
allmajor shareholder
communications and receives
regular updates on matters
ofinterest to investors.
During FY 2025/26,
Non-Executive Directors held
meetings with investors,
withExecutive Directors and
othermembers of the senior
management team, including
anumber of meetings to explain
the proposed Remuneration
Policy as described on pages
150 to 160. Investor concerns
were considered by the Board
when approving the key
decisions set out on page 119.
Furtherdetails on shareholder
engagement can be found
onpage 115 of the Corporate
Governance Statement.
Strategic Report | Sustainability at Burberry
Understanding our stakeholders’ perspectives, priorities and values allows us to position Burberry to deliver long-term sustainable value.
We regularly engage with ourstakeholders across the business and ensure that we balance the priorities of different stakeholder groups.
This insight influences decision-making and planning both at management and Board level and shapes how we deliver our strategy.
Documents submitted to the Board for approval are required to identify potential impacts onstakeholder groups. This process allows
theBoard to engage in informed discussions before making key strategic decisions.
The Board’s focus areas during FY 2025/26 and key decisions made in the period are set out on pages 118 to 119. References to how
stakeholder views were addressed as well as engagement outcomes are included on pages 39 to 40.
Through our engagement with our stakeholders and our work with our partners we aim to drive change and deliver sustainable value.
Burberry Annual Report 2025/26 39

Stakeholder Why we engage How we engage
Example outcomes
oftheengagement
People
Our colleagues work
across our global business,
representing a wide range
of roles from our Retail
teams to corporate
functions and supply
chainoperations.
Our people are creative and
highly skilled in their respective
fields and we are committed
totheir development. Ensuring
our workforce is engaged
andmotivated is an important
driver for our business.
Enhancing their skills and
training, supporting their
wellbeing and representing
their voices through our
belonging initiatives are
keypriorities.
In addition to Employee
Engagement Surveys, in
FY 2025/26 the CEO led
sevenglobal town halls for
colleagues while the Chair also
hosted a number of town hall
events when travelling around
the business. TheGlobal
Workforce Advisory Forum
(WAF) also provides an
opportunity for Non-Executive
Directors to hear directly from
employees. More details can
be found on page 115.
The results of Employee
Engagement Surveys have
supported the implementation
of the Reignite a High-
Performance Culture pillar of
Burberry Forward. Colleagues
have shown appreciation
forincreased communication,
transparency and simplification.
Feedback from colleagues led
to a greater focus on developing
career paths and learning and
development using our digital
learning platform.
Partners
Our partners include a
broad range of suppliers,
companies and third-party
retailers who we work with
across our value chain.
Working in collaboration with
our partners enables us to
share expertise and explore
opportunities for innovation.
We nurture close relationships
to ensure operational excellence
across our network and to
drive social and environmental
improvements.
The Board receives briefings
and updates on how we are
engaging with our partners
toachieve our sustainability
targets and updates on ethical
audits across our supply chain.
Our long-term partners support
our focus on core categories,
driving operational efficiency,
working together to reduce
environmental impact while
acting responsibly towards
thepeople in our supply chain.
We continue to explore
opportunities todevelop
products using innovative,
certified and responsibly
sourced raw materials
andexpand our circular
businessmodels.
Governments
Governments around
theworld who directly
influence matters which
impact Burberry, such
asthe long-term retail
environment, employment
laws, trade, environmental
and social priorities, tax
and other business matters.
Engaging with governments
inthe countries and territories
where we operate supports our
ability to operate effectively.
We seek to understand evolving
policy priorities and share
ourown perspectives,
workingtogether on shared
environmental, social, economic
and governance matters.
The Board is briefed
onengagements with
governments throughout the
year as well as key matters,
including economic, trade,
tariffs, investment outlook,
Value Added Tax (VAT),
workplace regulations and
theevolving environmental
andclimate change regulatory
landscape to ensure readiness
for implementation.
We continue to communicate
with governments on key
issues and solutions, for
instance, participating in policy
round tables, providing
evidence for consultations
andindustrypartners.
Communities
Communities where
weoperate and those
supported through our
supply chain and
charitableinitiatives.
We support our communities
through TheBurberry
Foundation (UKregistered
charity number 1154468) and
its flagship Burberry Inspire
programme, which drive
positive change and help build
a more sustainable future for
young people.
The Board approves
thebudgetfor charitable
donations, including to
TheBurberry Foundation.
TheBoard also receives
updates onhow Burberry
issupporting communities
aswell as opportunities
tosupport local projects
andorganisations.
The Burberry Inspire
programme supported
initiatives ina number of
regions to buildlife-long skills
through creativity, with the
goalof positively impacting the
livesof young people. Wealso
provided employee volunteering
opportunities connected
toourcommunities.
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/2640

4. Double Materiality Assessment
Purpose
In FY 2025/26, we carried out a double materiality assessment
(DMA) to identify and evaluate the sustainability topics across
ourvalue chain which are material tous as a business. Undergoing
aDMA enables us to understand materiality from twolenses:
financial materiality (the impact the environment and society
haveon Burberry’s financial position) and impact materiality
(theimpact Burberry has on the environment and society).
Understanding our materiality enables us to monitor the most
significant IROs across our value chainand manage these
accordingly. The results of our DMA havebeen used to support
the evolution of our Burberry Beyond strategy and will continue
toguide our actions across these sustainability topics.
Stakeholder engagement
We are building a stronger Burberry by listening to our
stakeholders. Regularly engaging with stakeholders throughout
the year helps us to understand their priorities and shape how
wedeliver our strategy (as detailed on pages 39 to 40). In addition
tothis ongoing engagement, we also incorporated insights from
stakeholders as part of our FY 2025/26 DMA process. Using a
combination of public reports and primary data from conversations
and surveys, we ensured our stakeholders’ priorities were
represented in the DMA and material topics were identified
andprioritised based on this.
Methodology
Performed using the concepts and framework of the European
Sustainability Reporting Standards (ESRS), our DMA involved
amulti-step process of identifying, assessing and validating
sustainability-related IROs across our value chain. Partnering with
a third-party AI-based application, which gathered information
from millions of publicly available sources, we used adata-driven,
evidence-based approach. Data sources included mandatory
regulations, corporate reports and media, in addition to information
garnered from voluntary initiatives and standards and frameworks
created by self-regulatory industry bodies and NGOs, such as
theGlobal Reporting Initiative (GRI) and Sustainability Accounting
Standards Board (SASB) standards. We also included data
representative of the opinions and voices of stakeholders
(asmentioned in the Stakeholder engagement section above).
Thiscomprised feedback derived from discussions with key
supply chain partners, customer insights and reports, as well
asthe results of a survey conducted with ourSustainability
Committee and Ethics Committee members. Theoutcomes
ofthisanalysis provided us with an understanding of the external
and internal context within which we operate, including a list
ofrelevant sustainability topics across our value chain to be
evaluated for IROs.
Based on the outcomes of the context analysis, a long list of IROs
was evaluated by 20 subject-matter experts across the business.
For financial risks and opportunities, subject-matter experts
determined the likelihood of the topics occurring and the magnitude
of potential financial effects if they were to occur. The scales used
for this assessment were aligned with our Group Risk Management
Framework. For negative and positive impacts, the IROs were
assessed based on scale, scope and irremediability (for negative
impacts). All IROs were also determined by their classification
(actual or potential), time horizon and their placement
onthevaluechain.
The assessed IROs were then validated by the Corporate
Responsibility and Sustainable Finance teams to ensure
consistency across the scoring and alignment of assumptions
made. All financial risks and opportunities were also reviewed
against our Group Risk Management Framework and principal
risks (see page 95 for more information). The IROs were then
mapped to a list of topics and sub-topics aligned to the ESRS.
Themateriality thresholds applied to the DMA were quantitative
and agreed across Corporate Responsibility and Sustainable
Finance to ensure levels were reflective of our organisational
sizeand structure while taking account of our external impacts.
Outcomes of our DMA
The calibration of the IROs resulted in a final list of 10 material
sustainability topics and 24 sub-topics. This list of material
sustainability topics was approved by the Audit Committee
inMarch 2026.
The material sustainability topics and sub-topics identified
inourDMA process as being the most significant to and for
ourbusiness are listed on page 42. The locations of disclosures
covering each material topic can also be found in this table.
Thesetopics form the basis of our FY 2025/26 sustainability
reporting asdemonstrated throughout this report
onpages36to90.
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/26 41

Upstream Own operations Downstream
Material sustainability topics
Topic Sub-topic
Value chain
location Disclosure location within Annual Report 2025/26
Climate
change
Climate change adaptation Climate Change section, pages 46 to 60
Water Conservation section, pages 62 to 65
Climate change mitigation
Climate Change section, pages 46 to 60
Energy
Climate Change section, pages 46 to 60
Pollution
Substances of concern Chemical and Pollution Management section, pages 60 to 62
Pollution of water
Chemical and Pollution Management section, pages 60 to 62
Water and
marine
resources
Water Water Conservation section, pages 62 to 65
Biodiversity
and
ecosystems
Direct impact drivers
ofbiodiversity loss
Biodiversity and Ecosystems section, pages 65 to 70
Impacts on the extent and
condition of ecosystems
Biodiversity and Ecosystems section, pages 65 to 70
Resource
use
andcircular
economy
Resource outflows related
toproducts and services
Resource Use and Circular Economy section, pages 71 to 75
Resource inflows, including
resource use
Resource Use and Circular Economy section, pages 71 to 75
Waste
Resource Use and Circular Economy section, pages 71 to 75
Own
workforce
Equal treatment and
opportunities for all
Our Workforce section, pages 76 to 79
Working conditions, including
employee health and safety,
wellbeing and wages
Our Workforce section, pages 76 to 79
Occupational Health and Safety section, pages 79 to 81
Workers
inthe value
chain
Equal treatment and
opportunities for all
People in our Supply Chain section, pages 82 to 87
Working conditions
People in our Supply Chain section, pages 82 to 87
Other work-related rights,
including human rights
People in our Supply Chain section, pages 82 to 87
Affected
communities
Community investment Community Investment section, pages 87 to 90
Consumers
andend
users
Information-related impacts for
consumers and/or end users
Risk and Viability report, page 101
Personal safety of consumers
and/or end users, including
product safety
Chemical and Pollution Management section, pages 60 to 62
Business
conduct
Animal welfare Animal Welfare section, page 93
Corporate culture, including
compliance with regulatory
standards
Risk and Viability report, page 103
Corruption and bribery
Anti-Bribery and Corruption section, page 92
Management of relationships
with suppliers
People in our Supply Chain section, pages 82 to 87
Intellectual property (IP)
Risk and Viability report, page 103
Strategic Report | Sustainability at Burberry
Note: although aligned to the ESRS topic list, we do not claim compliance with the Corporate Sustainability Reporting Directive (CSRD) nor the ESRS for FY 2025/26.
Burberry Annual Report 2025/2642

Disclosures relating to the sub-topics of corporate culture, IP,
andinformation-related impacts for consumers and/or end users
can be found within our Risk and Viability Report on pages 95 to 103
where details of these risks and the associated mitigating actions
are provided.
Risk management and internal controls
The overarching approach to identifying sustainability-related
risks is the same as for all principal risks, which is detailed
onpages 95 to 97. For each risk, including climate change and
supply chain impacts, we have a Risk Management Framework
detailing the controls in place and those responsible for managing
the overall risk and the relevant mitigating controls. We monitor
risks throughout the year to identify changes in principal risk
profiles. Management of sustainability-related risks is distributed
throughout the organisation, depending on where the risk resides.
For example, climate-related risks in relation to raw materials
inthe supply chain are managed by our Raw Material Procurement
team responsible for buying materials.
When sustainability-related risks are assessed, existing mitigating
activities and controls are highlighted and, where relevant and
appropriate, additional activities and controls are implemented
ifrisks fall outside of risk tolerance. Progress against these
mitigating activities is assessed by the appropriate Committee
responsible for monitoring the associated risk (as described
inthe Management oversight section on page 43).
Sustainability-related risks and opportunities are continually
monitored as part of our Group Risk Management Framework.
This allows us to evaluate the relative significance of our risks
based on their likelihood and impact, and to prioritise accordingly.
We also scan for new and emerging risks and keep abreast
ofevolving regulatory requirements.
5. Governance and management
Board oversight
Sustainability is a core part of Burberry’s strategy, with the
Boardresponsible for both its oversight and its integration
acrossthe business.
Our Governance Framework of Committees and advisory forums
provides updates and key information to the Board to ensure
itcan make informed decisions. This is outlined in the Corporate
Governance Statement on pages 121 to 122. The Matters Reserved
for Board Decision and the Committees’ terms of reference,
which are available in the Corporate Governance section
ofBurberryplc.com, provide more detail on the role of the Board
and each of its committees.
The Board considers sustainability-related issues, including
spend associated with our Burberry Beyond strategy, capital
expenditure relating to improving energy efficiency in our own
operations and colleague bonuses aligned to our sustainability
targets. The Board also oversees and monitors the risks and
opportunities related to climate change, nature and water.
Furtherinformation on Burberry’s risk management approach
isincluded in the Risk and Viability Report on pages 95 to 97.
As part of its review of preparedness for upcoming sustainability-
related regulatory requirements, the Audit Committee reviewed
and approved the results of the DMA for external publication.
Inaddition, sustainability reporting is considered as part of the
Board’s assessment of whether the Annual Report is fair,
balanced and understandable.
The Board also receives an annual update on the Company’s
community investment agenda and approves the budget for
charitable giving.
Management oversight
Burberry’s CEO is accountable for implementing Burberry Beyond
at the executive level and delegates managerial oversight of
environmental and social responsibility matters to our Corporate
Responsibility team. Led by the Vice President of Corporate
Responsibility, the team guides the execution of our Burberry
Beyond strategy by collaborating with teams across the business,
including Sustainable Finance, Information Technology (IT), Legal,
Product Development, Supply Chain and Human Resources.
Themanagement team tracks performance against our Burberry
Beyond commitments and mitigation measures and provides
regular updates to the Board and Committees on progress
andperformance.
The Company’s Sustainability Committee, which is chaired
bytheCEO, is responsible for reviewing and overseeing targets
relating to the Product and Planet pillars of our Sustainability
strategy, Burberry Beyond. The Committee is responsible for
theidentification, assessment and management of environmental
risks and opportunities, including nature- and water-related risks
such as land use change and water dependencies across our
value chain. The Committee plays an important decision-making
role in supporting Burberry’s environmental agenda, with
membership including senior leaders from across the organisation
who are responsible for the execution of the strategy within their
respective business areas. This includes operational planning
andsupply chain due diligence processes to manage exposure to
land conversion risks, water availability and quality constraints, as
well as associated regulatory and reputational risks. In FY 2025/26,
the Sustainability Committee met three times and provided the
Board with two updates. These included progress against the
Company’s sustainability-related goals and targets as well as
Burberry’s decarbonisation plans and disclosures.
The Ethics Committee oversees the Company’s governance and
strategy relating to our social agenda, including the governance
of human rights risks across our value chain. Where risks
areidentified, they are reported by management to the Ethics
Committee, which reports directly to the Audit Committee.
TheEthics Committee also has oversight of our community
investment workas it reviews the Company’s charitable
givingtwice a year.
The Risk Committee, which is chaired by the Chief Financial
Officer (CFO), is responsible for managing and monitoring
sustainability-related IROs. It has oversight of the Company’s
climate-related financial risk disclosures and preparations for
upcoming reporting regulations.
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/26 43

Knowledge and skills
As part of its ongoing review of Board composition, the Board
considers whether it has the appropriate skills and competencies
to oversee the delivery of Burberry Beyond. Where required,
additional training is provided. To support the Board in its review
and ongoing monitoring of Burberry’s Climate Transition Plan,
theBoard undertook carbon literacy training in February 2026.
Details regarding Board members’ sustainability skills and
experience areincluded in the biographies section on
pages109to 112.
Building sustainability knowledge and educating colleagues
across the business are both fundamental to the delivery of
ourBurberry Beyond strategy. Through frequent engagements
andcommunications, alongside tailored and targeted training,
westrive to develop the sustainability learning of our colleagues
onacontinuous basis.
We aim to reach as many colleagues as possible through internal
communications, including a weekly sustainability fast-fact series
and a periodic sustainability newsletter covering everything from
spotlights on colleagues who support the delivery of Burberry
Beyond to sustainability regulation updates. In FY 2025/26, we
introduced a weekly call entitled ‘Leaders Look Ahead and Round
Up’ with the purpose of sharing key business updates, including
relevant sustainability communications, for leaders to cascade
across their teams.
We have enhanced our colleague training to focus on reaching
new audiences during the year. For our supply chain and product
development colleagues, we continued to deliver training covering
how our Burberry Beyond strategy supports the delivery of
product sustainability and responsible sourcing. We also expanded
this training to include dedicated sessions for Design teams
witha focus on sustainable product development from materials
to manufacturing and circularity. On top of the guidance our
Marketing colleagues receive on our Sustainability Principles for
creative marketing, in FY 2025/26, we introduced tailored training
for relevant marketing teams on the responsible and compliant
use of environmental claims. The aim of this training is to reinforce
the importance of ensuring all sustainability-related product
claims are credible and in line with our internal Green Claims
Policy and Green Claims Standard Operating Procedure.
Raising awareness and conducting training on the risks
associated with modern slavery is essential for all relevant internal
stakeholders and functions that may identify or influence modern
slavery risks across the business. In FY 2024/25, welaunched
ouronline mandatory Modern Slavery training programme.
Weexpanded the rollout of this training in FY 2025/26, requiring
completion from over 1,695 colleagues globally across Supply
Chain, Product Development, Corporate Responsibility, Human
Resources and Retail functions, achieving a 94% completion rate.
This training helps colleagues who have close contact with our
key rights holders (including employees, supply chain workers,
communities and our customers) to be more familiar with the
riskareas, likely indications of human rights abuses (including
instances of modern slavery) and actions totake if an incident
ofmodern slavery is identified.
In addition to training and internal communications, we engaged
colleagues through in-person and live-streamed events, including
six panel events, two sustainable product showcases and two
Burberry Inspire showcases.
In FY 2025/26, we hosted two Sustainable Product and
ReBurberry showcases in our Leeds and London offices, inviting
colleagues to explore the materials, innovations, initiatives and
services behind our Burberry Beyond strategy. These exhibition-
style events provided colleagues with an opportunity to meet
subject-matter experts working on sustainability and experience
our ReBurberry services in person, including refreshing their
owncashmere and leather items. We also held Burberry Inspire
showcases in London and Milan to bring young people together
tocelebrate creativity and highlight successful collaborations
with local communities (see page 89 to 90 for more details
onBurberry Inspire events).
We prioritise connecting with our colleagues across the globe
toensure our teams have the relevant sustainability-related
knowledge and skills to support decision-making. In FY 2025/26,
we launched a series of live-streamed panel events covering all
four pillars of our Burberry Beyond strategy: Product, Planet,
People and Community Investment. The panel events covered
topics including the ‘Future of Sustainable Luxury’, ‘Ask Me About:
Sustainability at Burberry’ and a human rights-focused session.
Collectively these events reached an in-person audience of 500
colleagues and over 1,000 via digital streams.
Remuneration
The remuneration of Burberry’s Executive Directors is partly
linked to our progress in building a more sustainable future,
including progress towards Burberry’s longer-term climate
goals,via the annual bonus plan and our long-term incentive plan.
ForFY 2025/26, 25% of the annual bonus for Executive Directors
was linked to performance against strategic objectives related
toour Burberry Forward strategy, including key sustainability
measures. The Burberry Share Plan (BSP) award granted to the
Executive Directors in 2025 also included a sustainability
underpin. More information about our remuneration for
FY 2025/26 can be found on pages 141 to 177.
Since FY 2023/24, we have linked a proportion of our discretionary
annual corporate bonus plan for the wider workforce to the
achievement of sustainability metrics. This approach encourages
all colleagues to consider their contribution to our Burberry
Beyond strategy.
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/2644

Non-financial Key Performance Indicators
We have developed non-financial measures to assess our
performance against Burberry Beyond targets, with progress
regularly monitored by our Board. For further details on
environmental and social sustainability activities and FY 2025/26
progress against our Burberry Beyond targets, see pages 46to90.
The Group has considered the non-financial reporting requirements
under sections 414CA and 414CB of the Companies Act 2006
andhas included details in the Annual Report.
Thresholds for restatement
Any restatements to sustainability data are clearly indicated with
the reason provided. More information on our sustainability data
methodologies, including our approach to greenhouse gas (GHG)
emissions restatements can be found in our Sustainability Basis
of Reporting FY 2025/26 on Burberryplc.com.
External assurance
We have engaged Ernst & Young LLP (EY) to provide an external
independent limited assurance statement in accordance with
ISAE 3000 on our FY 2025/26 TCFD disclosures and specific
sustainability data denoted with a ^. For the outcomes of this
assurance, see the practitioner’s Limited Assurance Report
onBurberryplc.com.
6. Basis for preparation
Scope of data
The data in this section is based on the period 1 April 2025
to31 March 2026, unless otherwise stated. For the avoidance
ofdoubt, the Company’s financial accounting period is from
30 March 2025 to 28 March 2026. However, references to
FY 2025/26 for the indicators included in the Sustainability
atBurberry section (pages 36 to 90) refer to the period 1 April
2025 to 31 March 2026. Our sustainability data for FY 2025/26
covers our global operations. Any re-baselining undertaken due
to changes in calculation methodologies or data availability have
been added as footnotes to the data tables on the subsequent
pages. We publish a separate Sustainability Basis of Reporting
FY 2025/26 document on Burberryplc.com, which provides
further details ofthe scope of our assured data and targets,
aswell as any assumptions or exclusions that apply. We have
alsoadded footnotes to the data tables on subsequent pages to
explain anysignificant estimates or assumptions we have made.
Frameworks and legislation
This section contains our climate-related financial disclosure
consistent with the Task Force on Climate-related Financial
Disclosures (TCFD) (pages 46 to 75) to comply with the Companies
(Strategic Report) (Climate-related Financial Disclosure)
Regulations 2022 and UK Listing Rule 6.6.6R(8). Ourenergy
andcarbon data is reported on page 58 to comply with the UK’s
Streamlined Energy and Carbon Reporting requirements. We also
publish a Modern Slavery and Transparency in the Supply Chain
Statement on Burberryplc.com on anannual basis. This is in
accordance with the UK Modern Slavery Act 2015, the California
Transparency in Supply Chains Act of 2010, Canada’s Fighting
Against Forced Labour and Child Labour in Supply Chains Act
andAustralia’s Modern Slavery Act 2018.
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/26 45

ENVIRONMENTAL
DISCLOSURES
Strategic Report | Sustainability at Burberry
Our purpose, To Embrace the Elements with Open Arms, reflects our heritage
ofcreatingouterwear that protects people from the weather and our deep connection
tothe outdoors. Businesses and society at large continue to face challenges presented
bythe climate crisis, water insecurity and biodiversity loss. Burberry is committed
toaddressing these issues to create a resilient business and sustainable value chain.
This section explains how our Burberry Beyond strategy helps us to manage
ourmostsignificant environmental impacts and dependencies, mitigate risks
andrealiseopportunities.
CLIMATE CHANGE
Introduction
Burberry has a longstanding commitment to addressing the
impacts of climate change. Guided by the recommendations
ofthe TCFD, we identify, assess and manage climate-related risks
andopportunities, recognising climate change as a principal risk
for the Company (see our Risk and Viability report on page 95).
Materiality underpins our approach to our decarbonisation agenda,
and the results of the DMA we conducted in FY 2025/26
confirmed that climate change is a material topic for Burberry.
This assessment strengthens our understanding of the risks and
opportunities associated with climate change.
As our understanding of our GHG emissions has deepened,
particularly across our value chain, we have refined our climate
targets. We have extended our overall net zero target from
FY2039/40 to FY 2049/50, in line with the latest methodologies
from the Science Based Targets initiative (SBTi). We remain
committed to our short-term targets to deliver significant
emissions reductions across Scope 1 and 2 by FY 2026/27
andScope 3 by FY 2029/30. This decision, taken by the Board
inFY 2025/26, is grounded in our business transformation
andinbuilding clear, credible delivery pathways that we know
arerequired to decarbonise our business. As part of this, we have
published our first Climate Transition Plandisclosure (available
via Burberryplc.com) which outlines Burberry’s objectives,
strategy and governance to realise our netzero ambition.
A campaign image from the Gabardine Capsule 2026, photographed in Snowdonia, Wales.
Burberry Annual Report 2025/2646

The Burberry TCFD Basis of Reporting outlines how we have
prepared the Financial Statements and disclosures, considering
relevant TCFD guidance publications and the principles for effective
disclosure. We have engaged EY as independent practitioners
toprovide a limited assurance statement in accordance with
ISAE3000 on our FY 2025/26 TCFD disclosures and specific
sustainability data denoted with a ^.
TCFD statement
Below is a TCFD index outlining where we have reported on all key disclosure requirements.
TCFD recommendations and recommended disclosures
Disclosure location within
Annual Report 2025/26
Governance
Disclose the organisation’s
governance around climate-related
risks and opportunities.
a. Describe the board’s oversight of climate-related
risks and opportunities.
Governance and management,
pages43 to 44
b. Describe management’s role in assessing and
managing climate-related risks and opportunities.
Strategy
Disclose the actual and potential
impacts of climate-related risks and
opportunities on the organisation’s
businesses, strategy and financial
planning where such information
ismaterial.
a. Describe the climate-related risks and
opportunities the organisation has identified over
the short, medium and long term.
Climate Change, pages 46 to 55
Action sections in:
Climate Change, pages 56 to 57
Chemical and Pollution Management,
page 61
Water Conservation, pages 63 to 64
Biodiversity and Ecosystems, page69
Resource Use and Circular Economy,
pages 73 to 75
b. Describe the impact of climate-related risks
andopportunities on the organisation’s businesses,
strategy and financial planning.
c. Describe the resilience of the organisation’s
strategy, taking into consideration different
climate-related scenarios, including a 2°C
orlowerscenario.
Risk management
Disclose how the organisation
identifies, assesses and manages
climate-related risks.
a. Describe the organisation’s processes for
identifying and assessing climate-related risks.
Risk management and internal
controls, page 43
b. Describe the organisation’s processes for
managing climate-related risks.
Risk and Viability Report,
pages95to105
c. Describe how processes for identifying,
assessing and managing climate-related risks
areintegrated into the organisation’s overall
riskmanagement.
Climate Change, pages 46 to 55
Metrics and targets
Disclose the metrics and targets
used to assess and manage
relevant climate-related risks
andopportunities where such
information is material.
a. Disclose the metrics used by the organisation
toassess climate-related risks and opportunities
inline with its strategy and risk management process.
Targets sections and Metrics
sections in:
Climate Change, pages 55 to 59
Chemical and Pollution Management,
page 62
Water Conservation, pages 63and65
Biodiversity and Ecosystems,
pages68 and 70
Resource Use and Circular Economy,
pages 73 and 75
b. Disclose Scope 1, Scope 2 and, if appropriate,
Scope 3 GHG emissions and the related risks.
c. Describe the targets used by the organisation
tomanage climate-related risks and opportunities
and performance against targets.
Strategic Report | Sustainability at Burberry
For the results of that assurance, see EY’s Independent Limited
Assurance Report andBurberry’s TCFD and Sustainability Basis
ofReporting FY 2025/26 on Burberryplc.com.
Burberry Annual Report 2025/26 47

Approach
Strategy
Climate change has been identified as a principal risk to Burberry
and has the potential to impact our business in the short, medium
and long term. Our strategy to address climate-related risks
isintegrated into our business strategy and decision-making
inareas such as capital allocation, investment appraisal, supply
chain planning and raw material sourcing.
Background to scenario analysis
Scenario analysis is a process for identifying and assessing the
potential implications of a range of plausible future states under
conditions of uncertainty. Scenarios are hypothetical constructs
and not designed to deliver precise outcomes or forecasts.
Instead, scenarios provide a way for the business to consider
howthe future may look if certain trends continue, or certain
conditions are met, and to assess Burberry’s strategic resilience.
Climate-related risk scenario analysis is led by Sustainable
Finance, with input from Supply Chain, Corporate Responsibility,
Commercial and Finance teams across the business.
Our approach to scenario analysis
Our scenario analysis incorporates the Group’s financial forecasts,
operational footprint, supply chain information andenvironmental
data to create a digital twin representation ofthebusiness.
Theproduct portfolio is modelled based on our strategy, with
theGroup’s value chain being modelled using historical data.
Thisinformation is combined with industry reference scenarios
onclimate emission pathways, including assessments by the
Intergovernmental Panel on Climate Change (IPCC), International
Energy Agency (IEA) and Network for Greening the Financial
Systems (NGFS), to consider the potential impact ofphysical
andtransition risks on the business.
Each physical and transition risk was modelled independently
dueto the complexity and uncertainty associated with measuring
the interconnectivity of risks and how they influence each other.
Planned future mitigating actions, including those to deliver
ourambition to be net zero by 2050, have not been taken into
consideration in the scenario analysis.
In addition, we considered how a market shock arising from
thetransition to a low-carbon economy may impact the Group’s
cost of debt and how low-carbon innovations could potentially
devalue the Group’s technology. We have concluded that these
risks arenot significant at this time due to the Group’s cash
position, focus on renewable energy consumption and absence
ofcarbon-intensive machinery. We will continue to monitor
andreport on these risks.
Scenarios evaluated
The impact of physical and transition risks has been considered
over a range of possible scenarios and temperature outcomes.
This is in line with the recommendations of the TCFD to select
aset of scenarios that cover a reasonable variety of future
outcomes, both favourable and unfavourable.
In FY 2025/26, we updated the scenarios used in our assessment
of transition risks, drawing on scenarios developed by the NGFS,
a coalition of central banks and supervisors. These scenarios
focus more on how a potential transition to a low-carbon economy
may take place and whether this is in an orderly ordisorderly
manner, moving away from the previously modelled linear
scenarios. The scenarios used to evaluate physical risks remain
consistent with prior years and are based on the IPCC’s Shared
Socioeconomic Pathways. For disclosure purposes, we have
aligned the physical risk and transition risk scenarios, based
onequivalent temperature outcomes.
The scenarios assessed include a low-emissions Net Zero
2050pathway designed to limit global warming to below 1.5°C,
inlinewith the TCFD recommendation that organisations assess
resilience under a 2°C or lower scenario. The >4°C scenario
usedin previous years has been retired as it relies on outdated
assumptions which do not reflect current energy transitions,
particularly the rapid decline in renewable energy costs, which
makes a significant global resurgence in coal use increasingly
unlikely. The scenarios used in the modelling of climate-related
risks are outlined on page 50, along with a summary of the
potential global implications for both transition and physical
risksunder each pathway.
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/2648

Our scenario analysis considers the impacts of both physical and transition risks:
Physical risks Transition risks
Definition These are risks related to the physical
impacts of climate change. They include both
acute weather events, such as heatwaves
and chronic long-term climate shifts,
suchasrising sea levels.
These are risks that may occur while transitioning to a
lower-carbon economy, such as policy, market, reputation
and liability risks. The level of risk depends on the nature
and speed of the transition.
Timing of
impacts
Acute physical risks are already occurring,
and these are expected to happen more
often and with greater severity. Chronic
physical risks are more likely in the long term.
The timing of transition risks is uncertain, but they are
more likely to occur in the short to medium term.
Physical risk Policy risk Market risk Reputation risk Liability risk
Time horizons considered
We have defined our time horizons as:
• short term (five years);
• medium term (five to 20 years); and
• long term (more than 20 years).
The time horizon used for our detailed scenario analysis is a
short-term outlook of five years, during which we can influence
decisions through strategy, capital allocation, costs and revenues.
Typically, three years is used for our financial and operational
planning, as this is sufficient to cover the majority of approved
capital expenditure projects and most current business
development projects will be completed in this period.
Our viability assessment is broadly aligned to this timeframe,
covering a three-year period. For the purposes of scenario
analysis, we have extended the timeframe to five years using
agrowth assumption, which more closely aligns with our
expected asset lifetimes and strategic plans.
Furthermore, we have used our detailed five-year analysis
toconsider how climate-related risks may evolve over 10 years
tofurther guide the development of our climate strategy.
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/26 49

Results of our scenario analysis
The output of our scenario analysis considers the financial impact
of climate-related risks on Burberry. This entails estimating the
loss of value to the Group’s discounted cash flows over the next
five years, assuming no mitigating actions are taken.
Overall, the results of our scenario analysis indicate that the
physical and transition risks associated with climate change
could impact the business in the short, medium and long term.
The size of the impact will depend on the nature and speed of
theglobal transition towards a low-carbon economy and the level
of uncertainty increases beyond a five-year horizon. In the short
to medium term, the Net Zero 2050 scenario would have most
impact on Burberry before considering any mitigating actions,
with market risk being a key driver of the impact.
Scenarios evaluated in Burberry’s climate-related risk analysis
Scenario name Scenario description Global impact of climate-related risks over time
Average global
temperature rise
by 2100
Net Zero 2050 This scenario limits global warming
to1.5°C through stringent climate
policies and innovation, reaching
global net zero emissions by
around2050.
To limit global warming to less than 1.5°C
compared to pre-industrial levels, collective
global action willbe needed, leading to
significantly higher transition costs. By taking
collective action, the impact of physical risks
occurring in the long term may be reduced.
~1.5°C
Nationally
Determined
Contributions
(NDCs)
This scenario assumes countries
meet their pledged climate targets,
even if not backed up by implemented
andeffective policies.
Actions in line with Paris Agreement
commitments would lead to increased transition
risk in relation tocurrent policies.
~2.5°C
Current Policies This scenario assumes only currently
implemented and binding policies
areadhered to.
In the absence of additional interventions by
governments globally, the pace of transition is
slower and exposure to physical risks increases.
~3.0°C
Transition risks are expected to be the most impactful in the short
to medium term, continuing the trends our five-year scenario
analysis identified, as they relate to events such as policies and
market behaviour that are either current or anticipated to come
into effect in the near future. Physical risks are expected to
become most impactful in the long-term, with the size of the
impact dependent on the success of global initiatives to limit
therepercussions of climate change.
These long-term physical risks may disrupt our supply chain
andcreate operational challenges. Our commitment to procure
certified or responsibly sourced raw materials and our continued
focus on innovation are key to limiting this impact. We will remain
agile and continue to monitor this risk, informed by the latest
scientific understanding of climate change. We will also continue
to assess how the outputs of our scenario analysis can be utilised
to inform future strategic planning, including our Climate
Transition Plan, where relevant.
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/2650

Detailed risk analysis
This section details the approach and results of our scenario analysis for each modelled risk. The financial impact reflects the estimated
loss in the Group’s discounted cash flows over the next five years, assuming no mitigating actions are taken. This impact has been
categorised as ‘High’, ‘Medium’ or ‘Low’, reflecting materiality to the Group’s Financial Statements.
Our strategic response to the identified climate-related risks can be found within the Actions sections on pages 55 to 75 as indicated
bythe risk type icons.
Physical risk
Scenario
Net Zero
2050
NDCs Current
Policies
Financial impact:
Medium Medium Medium
How we modelled the risk
We quantified how extreme weather events and chronic
changes in the climate might disrupt manufacturing and
distribution of goods, damage assets and impact retail
activities, leading to changes in consumption patterns.
Wealsoconsidered how chronic changes in climate may
impact yields of the key raw materials we use.
Potential areas of impact
An increase in the frequency and severity of acute weather
events may impact raw material sourcing, disrupt operations
and damage facilities. Facility disruption may result from an
increased risk of tropical windstorms and floods in Asia as well
as increased risk of droughts and heatwaves in Asia, Europe
and the Americas.
The impact of physical risks will become more significant
inthe medium and longer term, particularly in the higher
temperature scenarios. The impact of chronic physical risks,
such as increasing global temperatures, will be particularly
impactful over this time period.
Key assumptions
• Scenario analysis is based on our current asset base
andvalue chain. Planned changes to our asset base and
sourcing locations have not been taken into consideration
inquantifying the five-year earnings at risk
• We have considered the extent to which financial impacts
may be passed on to consumers. This has been assessed in
line with expectations of market capacity for price increases
Financial impact
Potential impact on Burberry’s cumulative discounted cash flows over five years, assuming no mitigating actions are taken:
Low: (£0 – £20 million) Medium: (£20 million – £100 million) High: (£100 million – £200 million)
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/26 51

Policy risk
Scenario
Net Zero
2050
NDCs Current
Policies
Financial impact:
Medium Low Low
Timeframe for most significant impact: shortto medium term
How we modelled the risk
We quantified how the implementation of carbon pricing
mayresult in increased costs associated with production,
distribution and raw materials.
Carbon prices and projected changes in these have been
considered at a country level.
Potential areas of impact
An increase in costs of production, distribution and raw
materials in the short to medium term, with a higher carbon
price required to achieve a lower temperature scenario.
Key assumptions
• Scenario analysis and quantification of the five-year
earnings at risk does not take into consideration our actions
to be net zero by 2050 and therefore assumes a growth
inGHG emissions aligned to an average growth rate used
inour product forecast
• GHG emissions are based on our assured restated
FY 2024/25 footprint. See page 58 for details
• We have considered the extent to which financial impacts
incurred may be passed on to consumers. This has been
assessed in line with expectations of market capacity for
price increases
• The carbon prices used in the modelling are shadow prices
as determined by the NGFS. This indicates what the price
needs to be for the given NGFS pathway target to be
achieved. Below details the average carbon price at the
endof the modelling period:
• Net Zero 2050 = USD 246 per tonne
• NDCs = USD 63 per tonne
• Current Policies = USD 6 per tonne
• The change in price relative to previous years’ modelling
isprimarily driven by the adoption of the NGFS’s scenarios
and carbon prices. This has resulted in higher potential
financial impacts under the Net Zero 2050 scenario, which
shows the largest increase in global average carbon prices
in comparison to FY 2024/25’s equivalent pathways
Market risk
Scenario
Net Zero
2050
NDCs Current
Policies
Financial impact:
High Low Low
Timeframe for most significant impact: shortto medium term
How we modelled the risk
We quantified how shifts in consumer preferences towards
more sustainable and less carbon-intensive goods may
impactdemand for our products.
Consumer preference shifts have been considered
atacountry level.
Potential areas of impact
A shift away from products constructed using less sustainable
raw materials, including animal-based materials, towards
organic, regenerative or recycled fabrics. This shift is expected
to happen in the short to medium term, and more quickly in
geographical regions where public attention on the sustainable
materials used to produce clothing is greater, such as Europe
and North America. The shift will be more apparent in a
lower-temperature scenario, which assumes that a higher
proportion of consumers will adopt more sustainable choices.
Key assumptions
• Consumer perception of Burberry products is assumed
tobelinked to the carbon footprint of sourcing raw materials,
production and distribution
• Scenario analysis is based on Burberry’s Product strategy
and revenues, aligned with its strategic vision and projected
raw material usage
• We have considered how shifts in consumer preferences
may impact operating margin and net cash. This has been
assessed in line with our current cost structure
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/2652

Reputation risk
Scenario
Net Zero
2050
NDCs Current
Policies
Financial impact:
Low Low Low
Timeframe for most significant impact: shortto medium term
How we modelled the risk
We quantified how climate activism due to negative perception
of our climate impact and strategy may lead to reputational
damage resulting in both loss of revenue and increased labour
costs due to challenges in retaining and attracting employees.
Society’s opinion with respect to the threat of climate change
has been considered at a country level.
Potential areas of impact
Society may engage in climate activism in the short to medium
term with companies perceived as less sustainable being
targeted, resulting in decreased revenue and reduced market
share. Despite minimal shifts in consumer preferences in the
short term under a Current Policy scenario, a section of society
may engage in general activism against organisations due
totheir inaction in relation to climate change, resulting in
disruption and lost revenue. Negative reputational impacts
may also lead to difficulties in retaining and attracting
employees, resulting in additional costs.
Key assumptions
• The model was updated in FY 2025/26, shifting from a
probability-based approach to an events-based approach
when assessing the potential likelihood and severity of
reputation damaging events. Reputational impacts on
employee retention and hiring have also been considered
inFY 2025/26
• Scenario analysis is based on Burberry’s product
strategyandits GHG emissions when compared with
thewiderindustry
• We have considered the extent to which financial impacts
may be passed on to consumers. This has been assessed in
line with expectations of market capacity for price increases
Liability risk
Scenario
Net Zero
2050
NDCs Current
Policies
Financial impact:
Low Low Low
Timeframe for most significant impact: shortto medium term
How we modelled the risk
We quantified how perceptions regarding involvement in
climate change-contributing activities, sustainability-related
claims and failure to transition the business towards a
low-carbon future could lead to increased operating expenses
through litigation.
Potential areas of impact
Potential operating expenses may arise from fines, settlements
and legal costs in the short to medium term.
Key assumptions
• Historical precedents and recent climate-related litigation
trends were used to model the potential impacts of climate
change litigation on Burberry. These were updated
inFY 2025/26
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/26 53

Opportunities
In addition to climate-related risks quantified through scenario analysis, Burberry continues to identify and act upon climate-related
opportunities aimed at supporting the Company’s overarching Climate Transition Plan and net zero target. The Sustainability Committee
plays a pivotal role inidentifying, prioritising and realising climate-related opportunities. The Committee receives pertinent opportunities
from internal teamsworking on our environmental agenda, which are then evaluated for feasibility and potential impact, as well as their
alignment withkey priorities.
Examples of such climate-related opportunities are summarised below.
TCFD
opportunity
area
Opportunity
description Actions taken to realise opportunity
Time horizon
ofimpact
Resource
efficiency
Use of more efficient
production and
distributionprocesses
We continue to implement energy efficiency measures across our
operations. At our distribution hub in Blyth, we replaced the roof and
installed new solar panels to increase on-site renewable energy generation.
In addition, we conducted energy audits and introduced further efficiency
improvements, including upgraded lighting across both our Blyth hub and
internal manufacturing facilities in Italy.
Short/medium term
We continue to monitor our real-time electricity consumption to identify
anomalous consumption patterns and to support energy efficiency across
our retail sites. We have targets in place for our internal sites to ensure
continued progress in reducing emissions.
Short term
Move to more efficient
buildings
Improved building efficiency through obtaining LEED Gold certification in
18additional stores and BREEAM Excellent certification for one of our sites,
bringing our total to 153 certified sites since FY 2018/19.
Short/medium term
Energy source
Use of lower-emission
sources of energy
100% of the electricity we consume is matched by an equivalent amount
ofrenewable generation sourced from renewable tariffs, Energy Attribute
Certificates, or generated through on-site renewables.
Short term
Products
andservices
Development and/or
expansion of low-emission
goods and services
In our Spring 2026 collection, we introduced our first product made from
100% recycled nylon. The fabric was crafted entirely from production
offcuts. Through a textile-to-textile recycling process, the offcuts were
transformed into a fabric suitable for use in future collections. This marked
an exciting step forward in our commitment to sourcing responsible materials.
We continue to explore ways to expand textile-to-textile recycling within
oursupply chain.
Short/medium term
Our global ReBurberry aftercare services enable our customers to care
fortheir products so that they can enjoy them for longer. By keeping items
in use longer and minimising waste, these services lower demand for raw
materials, energy and transportation, ultimately helping to reduce our
overall carbon footprint. In FY 2025/26, we strengthened our aftercare
offering for our iconic trench and scarf products and onboarded a further
10repair vendors to support our aftercare service network. Our aftercare
services comprise Trench Refresh and Reproofing, Outerwear Reproofing,
Apparel Repair, Alterations, Scarf Refresh, Scarf Upcycle, Leather
Refresh,Leather Repair, Canvas Bag Cleaning, Shoe Repair, Sneaker
Refresh andRewax.
Short/medium term
The Corporate Responsibility team works closely with the Buying and
Product Development teams to embed sustainability opportunities into
seasonal merchandise plans.
Short term
Products
andservices
continued
Development of new
products or services
through research and
development and
innovation
Our Material Innovation team leads on identifying and developing innovative
materials and processes that will help lower the environmental footprint
ofour business. As part of this, we are exploring waterless dyeing, a process
during which pressurised carbon dioxide is used to dye fibres, almost
entirely eliminating the need for water. This results in a more efficient
dyeing process, reducing both chemical use and water intensity compared
with conventional methods.
Short/medium term
Resilience
Participation in renewable
energy programmes
andadoption of energy
efficiency measures
As a member of The Fashion Pact, we collaborate with peers to support
ourEuropean suppliers to transform energy use within their facilities
through the European Accelerator Programme. In FY 2025/26, through
thisprogramme, we engaged selected suppliers to identify opportunities
for energy efficiency improvements and decarbonisation.
Short/medium term
Strategic Report | Sustainability at Burberry
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Strategic Report | Sustainability at Burberry
Summary of response to scenario analysis
At Burberry, we believe our long-term success depends on
proactively addressing the potential impact of climate-related
risks while positioning the business to adapt to emerging
opportunities. As such, we have adopted strategies and actions
tomitigate these risks and ensure our strategy adapts to the
potential opportunities. Where such actions have quantifiable
investments associated with them, these are embedded within
our Board-approved financial plans, which are translated
intoannual budgets.
We have also considered the impact of climate change in the
preparation of our Financial Statements, which can be found
onpage 197. As scientific understanding of climate change,
availability of data and modelling methodologies continue to
evolve, we will further develop and update our scenario analysis
to support our assessment of the resilience of our business
strategy to climate-related risks and ensure relevant mitigating
strategies are in place.
Details on targets and metrics aligned to the identified climate-
related risks can be found within the Targets sections and Metrics
sections on pages 55 to 75, as indicated by the risk type icons.
Policies
Our Global Environmental Policy establishes Burberry’s
commitment to improving our environmental performance and
topreventing or minimising any potential negative impacts
ontheenvironment along Burberry’s value chain.
The Global Environmental Policy defines Burberry’s target to
reach net zero by 2050, requiring the reduction of GHG emissions
across our value chain (Scope 1, 2 and 3 emissions) in line with
our science-based emissions reduction targets. The policy includes
our commitment to procure or generate 100% of our electricity
from renewable sources, where feasible, and to improve the
efficiency of energy consumption at Burberry’s own sites.
The policy applies to all Burberry operations and compliance
ismandatory for all Business Associates. Business Associates
include any individual, entity, business or company associated
with Burberry, including supply chain partners who carry out any
processing or provide any goods directly or indirectly supplied
toBurberry. Burberry engages key stakeholders, including
industry partners, government bodies and NGOs, in setting
andimplementing the policy effectively. Regular training and
communication are key aspects of our environmental programmes.
The policy is available on Burberryplc.com and shared with
employees, contractors and Business Associates during their
onboarding as part of their contractual compliance obligations.
Burberry’s Sustainability Committee, chaired by the CEO,
oversees the implementation of the Group Environmental Policy.
Targets
We have refined our climate targets to reflect a greater
understanding of GHG emissions across our value chain,
investments in our GHG data management capabilities and
updates to the SBTi and GHG Protocol standards and frameworks.
Ourrevised targets also take into account the observed and
projected speed and scale of decarbonisation across our industry
and economies where we operate, both significant dependencies
for the realisation of our goals. Based on these insights, we
haveextended our overall net zero target from FY 2039/40
toFY 2049/50 and segregated our Scope 3 targets between
FLAG (Forests, Land and Agriculture) and non-FLAG emissions
1
.
We believe our revised targets reflect a pragmatic response to
external factors, while allowing us to maintain a level of ambition
in line with our assessment of climate change as a principal risk
facing our business.
Our targets remain aligned to a 1.5°C pathway and will be
submitted to the SBTi for validation against the current Corporate
Net-Zero Standard (V1.3).
Our methodology for measuring progress towards our emissions
targets is aligned with the Greenhouse Gas Protocol Corporate
Accounting and Reporting Standard. Please see Revisions to
ourGHG accounting on page 57 for further details on how we
have evolved our GHG accounting methodology in FY 2025/26
toensure that our reported data is as accurate, transparent and
actionable as possible. Further details on our GHG accounting
methodology can be found in our Sustainability Basis of Reporting
FY 2025/26 on Burberryplc.com.
We actively monitor changes to external guidance and standards
for corporate emissions targets, receiving insights from bodies
such as the SBTi and ISO. We will continue to evolve our targets
as required.
Net zero
Reach net zero GHG emissions across our value chain
byFY2049/50.
FY 2025/26 performance
In FY 2025/26, we continued to make meaningful progress
towards reaching net zero, with sustained reductions across
Scope 1, 2 and 3 GHG emissions. Our approach to achieving
netzero is to first work towards the level of emissions reductions
required by our Scope 1, 2 and 3 reduction targets (see page 56),
before neutralising our residual emissions with limited use
ofhigh-integrity and certified carbon removal credits from
FY 2049/50 onwards. This approach is in line with the SBTi’s
Corporate Net-Zero Standard.
1. FLAG emissions refer to GHG emissions and removals from land-based activities, including land use change and land management. Non-FLAGemissionsencompass all other GHG
emissions not directly related to these land-based activities, such as those from energy or industrial processes.
Burberry Annual Report 2025/26 55

Scope 1 and 2
Reduce absolute Scope 1 and 2 GHG emissions by 95%
byFY 2026/27 from a FY 2016/17 base year, and maintain
this from FY 2026/27 through FY 2049/50.
FY 2025/26 performance
In FY 2025/26, we achieved a 94.3% reduction from our FY
2016/17 baseline (compared with a 93.7% reduction achieved in
FY 2024/25). Our continued progress towards our target reflects
a year-on-year decrease in Scope 1 and 2 emissions of 7%.
This was achieved through reductions in gas consumption across
several Burberry sites attributable to warmer winter temperatures
and a roof upgrade at our UK hub site, as well as energy
efficiency and education measures. Further details on actions
taken in FY 2025/26 are provided in the following sections.
Scope 3
Reduce absolute Scope 3 non-FLAG GHG emissions
by46.2% by FY 2029/30 and by 90% by FY 2049/50
fromaFY 2018/19 base year.
Reduce absolute Scope 3 FLAG GHG emissions
by30.3%by FY 2029/30 and by 72% by FY 2049/50
fromaFY 2018/19 base year.
FY 2025/26 performance
In FY 2025/26, we achieved a 3.9% reduction in our overall Scope
3 emissions compared to FY 2024/25. This was a 22.1% reduction
since FY 2018/19, the base year of our Scope 3 targets.
Our non-FLAG Scope 3 emissions decreased 6.5% year-on-year,
and 20.2% compared with FY 2018/19.
While our FLAG Scope 3 emissions increased 9.2% year-on-year,
this represents a reduction of 29.5% since FY 2018/19. Further
information regarding our updated GHG accounting methodology
can be found on page 57.
While our Scope 3 performance continues to be partly determined
by the volume and mix of products we produce, we have reduced
the intensity of production- and shipping-related emissions
bymore than 15% per unit of finished goods since FY 2018/19.
Our ongoing improvement was supported in FY 2025/26
bytheactions detailed in the following section.
Actions
In FY 2025/26, we continued to take action to manage climate-
related risks and opportunities through the development of our
Climate Transition Plan; action on energy decarbonisation and
business travel; and through the actions detailed in our Chemical
and Pollution Management (pages 60 to 62), Water Conservation
(pages 62 to 65), Biodiversity and Ecosystems (pages 65 to 70)
and Resource Use and Circular Economy (pages 71 to 75) sections.
Interventions which made significant contributions to progress
against our climate targets during FY 2025/26 included energy-
and business-travel-related actions (see page 57); continued
progress against our responsible sourcing target (see pages 68
to 70); and efforts to prevent and minimise manufacturing waste
(see page 74 to 75).
1. Climate Transition Plan development
We published our first Climate Transition Plan, which is available
on Burberryplc.com, outlining Burberry’s objectives, strategy and
governance regarding:
• reducing GHG emissions from FY 2026/27 toFY 2029/30
inline with our science-based climate targets;
• managing our climate-related risks and opportunities to build
climate resilience across our business; and
• working with partners to support an industry-wide transition
tonet zero in line with the goals of the Paris Agreement.
It includes actions aimed at delivering near-term emissions
reductions as well as strategies to build the organisational
capacity and capability required to enable the longer-term future
emissions reductions that will keep us on a pathway to becoming
net zero by 2050.
The Climate Transition Plan was informed by both internal and
external Burberry stakeholders and was approved by the Board.
2. Business operations
Energy efficiency
In FY 2025/26, we maintained our efforts to reduce emissions
through operational energy efficiencies and now have targets
inplace for our distribution hubs, fulfilment centres and internal
manufacturing sites. In FY 2025/26, our total energy consumption
decreased by 43% from a FY 2016/17 baseline and by 5%
fromFY 2024/25.
Energy efficiency measures across our own sites were key to
achieving this reduction. At our distribution hub in Blyth, the roof
was replaced and solar panels installed, leading to improvements
in energy efficiency, reduction in heat loss and new capabilities
for on-site renewable energy generation. In addition, energy
audits and energy-saving measures, including lighting upgrades,
were undertaken at our distribution hub and internal
manufacturing sites in Italy.
Across our operations, 153 sites have been LEED or BREEAM
certified since FY 2018/19. In FY 2025/26, we obtained the
LEEDGold certification in 18 additional stores and the BREEAM
Excellent certification at our London headquarters, Horseferry
House. These certifications set the standard for energy efficiency
globally. They require the implementation of energy-saving
measures, which resulted in a reduction in energy consumption
ofup to 8% when compared to previous conditions. By obtaining
these certifications we are ensuring our buildings areoperating
toa high energy efficiency standard as we continue to implement
energy-saving practices across our newsites and renovations.
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Burberry Annual Report 2025/2656

Renewable electricity
In FY 2025/26, we maintained the progress made in previous
financial years. All of the electricity we consumed was matched
with an equivalent amount sourced from renewable tariffs
andEnergy Attribute Certificates or generated through on-site
renewables, including solar panels installed at select sites
intheUK, Italy and the USA.
3. Supply chain
Business travel GHG emissions
To minimise future GHG emissions from business travel, we
strengthened our Global Travel Policy in FY 2025/26. Measures
included adjusting flight duration requirements to qualify for
business class travel; encouraging colleagues to stay in hotels
with recognised sustainability certifications; and requiring
colleagues to prioritise train travel over short-haul flights in
regions where it is feasible to do so. The implementation of this
policy has been supported by increased sustainability-related
communications for colleagues at the point of booking, including
visibility of the GHG emissions impact of their travel.
Supply chain decarbonisation
Collaboration with key Tier 1 and 2 suppliers is essential
toreducing Scope 3 GHG emissions. In FY 2025/26, we
strengthened our work with key supply chain partners to enhance
energy efficiency, accelerate the adoption of renewable energy
and reduce reliance on fossil fuels within our supply chain.
Thisincluded the development and regular review of supply
chainpartner-specific energy and decarbonisation roadmaps
inline with our climate ambition.
In addition, in FY 2025/26, we delivered four in-person sessions
for 78 supply chain partners in Italy, Vietnam and South Korea
aswell as periodic virtual events. The purpose of these sessions
was to foster dialogue with our supply chain partners, address
shared decarbonisation challenges and promote the exchange
ofknowledge and best practice. Sessions focused on identifying
key decarbonisation levers and addressing barriers to renewable
electricity access.
To optimise decarbonisation within our supply chain, we take
collective action with industry peers, including through our
workas a member of The Fashion Pact’s European Accelerator
Programme. In FY 2025/26, for instance, participating brands
launched a joint environmental data questionnaire to improve
thequality of data collected and ease the reporting burden
onsuppliers. The questionnaire was promoted across industry
forums and made publicly available to encourage its adoption
beyond the programme. The European Accelerator Programme
also aims to facilitate the implementation of decarbonisation
initiatives and renewable energy solutions, with a particular
focuson the Italian supply chain. In FY 2025/26, as part of the
programme, we engaged selected suppliers in site-specific,
technology-assisted studies to identify energy efficiency
anddecarbonisation opportunities.
Additionally, Burberry joined the Carbon Target Setting
programme, led by Apparel Impact Institute, in collaboration with
other luxury and fashion brands. The initiative is another example
of collective action towards the decarbonisation of shared Italian
supply chains, supporting partners in their transition to lower-carbon
manufacturing, developing aligned emissions reduction targets
and identifying the interventions needed to achieve them.
Thisapproach also supports alignment and consistency across
brand expectations and reduces duplicative efforts for suppliers.
Overall, our joint action activities through the European Accelerator
and the Carbon Target Setting programmes have involved a total
of 39 partners, 22 of which are in our own supply chain. Both
cohorts are expected to conclude their activities in early FY 2026/27.
The progress made to date in advancing these collaborative
efforts represents an important step; through these collective
actions, we are supporting partners to understand, unlock and
scale decarbonisation opportunities across the supply chain.
Metrics
Revisions to our GHG accounting
We measure and publicly report our Scope 1, 2 and 3 GHG
emissions on an annual basis in accordance with GHG Protocol
standards and guidance. As our access to data improves
andexternal standards are refined, we continue to evolve our
methodology to ensure that our reported data is as accurate,
transparent and actionable as possible. In FY 2025/26, we
re-baselined our FY 2018/19 and FY 2024/25 Scope 3 GHG
inventory to account for the latest GHG Protocol standards
andguidance, greater supply chain data availability and new
industry Life Cycle Assessment (LCA) studies.
While re-baselining resulted in adjustments to our previously
reported figures, the process has improved consistency and
comparability with our reported impacts across financial years.
This enables Burberry to track progress against our GHG targets
with greater integrity and to ensure that our emissions reduction
strategies are as targeted and effective as possible.
In addition, re-baselining allowed us to split Burberry’s GHG
inventory by FLAG and non-FLAG emissions, as required
bytheGHG Protocol’s Land Sector and Removals Standard.
Thisfacilitates greater understanding of our climate impacts
related to land use, land management and land use change,
andhas enabled the update of our Scope 3 near-term targets
(asoutlined on page 55).
Further details on our methodology and restatements, including
the original reported values, can be found in our Sustainability
Basis of Reporting FY 2025/26 available on Burberryplc.com.
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/26 57

Total Scope 1, 2 and 3 GHG emissions
FY 2025/26
FY 2024/25
Restated
Total Scope 1, 2 and 3 emissions (market-based) (tonnes CO
2
e) 276,602 287,926 R
Scope 1, 2 and 3 emissions intensity (tonnes CO
2
e per £1m sales revenue) 114.3 117.6 R
R – Restated figure. Our FY 2024/25 GHG inventories have been restated to reflect new industry LCA studies and emissions factors, methodological enhancements, improved data
availability, and to account for the latest GHG Protocol standards and guidance. Further details on our methodology and restatements, including the original reported values, can be found
in our Sustainability Basis of Reporting FY 2025/26 (available on Burberryplc.com).
Scope 1 and 2
FY 2025/26 FY 2024/25 FY 2023/24
Global
UK and
offshore only Global
UK and
offshore only Global
UK and
offshore only
Total energy including: purchase of electricity,
the operation of any facility, combustion of fuel
for facilities and vehicles/kWh 48,876,660^ 12,631,884 51,647,269 13,686,450 54,735,836 15,402,415
Scope 1 – Combustion of fuel and operation
offacilities (tonnes CO
2
e) 1,378^ 728 1,470 845 1,545 1,056
Scope 1 – Combustion of fuel from owned
orleased transport (tonnes CO
2
e) 53^ 2 68 2 122 3
Scope 2 – Electricity purchased and used
foroperations (location based) (tonnes CO
2
e) 15,129^ 1,517 16,347 1,782 17,308 1,998
Scope 1 and 2 – Total emissions (location
based) (tonnes CO
2
e) 16,560^ 2,247 17,885 2,629 18,975 3,057
Scope 2 – Electricity purchased and used
foroperations (market based) (tonnes CO
2
e) 0^ 0 0 0 0 0
Scope 1 and 2 – Total emissions (market based)
(tonnes CO
2
e)
1
1,430^ 730 1,538 847 1,667 1,059
Total emissions offset by Verified Emissions
Reduction Certificates (tonnes CO
2
e) 0 0 0 0 1,667 1,059
Scope 1 and 2 intensity (location-based)
(tonnes CO
2
e per £1m sales revenue) 6.84 N/A 7.27 N/A 6.4 N/A
% of energy and electricity consumption (kWh)
sourced from renewable sources (%) 84%^ 68% 84% 66% 84% 63%
Burberry applies an operational control approach to defining its organisational boundaries. Data is reported for sites where it is
considered that Burberry has the ability to influence energy management. Data is not reported for sites where Burberry has a physical
presence but does not influence the energy management for those sites, such as a concession within a department store. Overall, the
emissions inventory reported equates to 98% of our net selling space square footage. Burberry uses the Greenhouse Gas Protocol (using
a location- and market-based approach to reporting Scope 2 emissions) to estimate emissions and applies conversion factors from UK
DESNZ (2025) and the International Energy Agency (IEA) (2025), according to geography. All material sources of emissions are reported.
Refrigerant gases were deemed not material and are not reported. Market-based emissions globally and for the UK relating to purchased
electricity within our operations (Scope 2) are stated as zero due to us procuring or generating an amount of renewable electricity
equivalent to 100% of our annual consumption. GHG emissions data reported is based on the period from 1 April 2025 to 31 March 2026.
For the avoidance of doubt, the Company’s financial accounting period is from 30 March 2025 to 28 March 2026. However, references
toFY 2025/26 for the selected metrics included in the Sustainability section refer to the period 1 April 2025 to 31 March 2026.
Moreinformation on our methodology can be found in our Sustainability Basis of Reporting FY 2025/26 on Burberryplc.com.
1. Figure used to calculate progress against our Scope 1 and 2 science-based target.
^ This metric was subject to external independent limited assurance by Ernst & Young LLP (EY). For the results of that assurance, see EY’s Independent Limited Assurance Report
andBurberry’s Sustainability Basis of Reporting FY 2025/26 on Burberryplc.com.
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/2658

Energy – Own operations
FY 2025/26 FY 2024/25 FY 2023/24
Total electricity (kWh) 41,134,457 43,369,097 45,977,503
Percentage of electricity from renewable sources
1
100% 100% 100%
Total gas (kWh) 7,531,034 8,035,291 8,246,431
Total fuel from owned or leased transport (kWh) 211,169 242,882 369,636
Total energy
2
(kWh) 48,876,660 51,647,269 54,735,836
Percentage of energy from renewable sources 84% 84% 84%
Energy efficiency (energy relative to net selling space) (kWh/sqft) 15.91 16.55 16.32
Energy by facility type
Internal manufacturing 6,543,097 6,564,238 7,009,228
Distribution centres 4,693,598 5,628,024 5,214,419
Stores 31,747,476 33,387,491 34,309,998
Offices 5,681,320 5,824,635 7,832,555
Total energy (facilities only – excluding energy from vehicles) 48,665,491 51,404,388 54,366,200
Number of sites with LEED or BREEAM certification
3
153 134 105
1. Renewable sources include on-site generation, green tariffs and energy attribute certificates.
2. Includes purchase of electricity, the operation of any facility and combustion of fuel for facilities and vehicles.
3. Accepted certificates: LEED (Platinum or Gold level), BREEAM (Outstanding or Excellent level).
Scope 3
FY 2025/26
FY 2024/25
Restated
FY 2018/19
baseline
Restated
Cat 1: Purchased goods and services (tonnes CO
2
e) 209,245 206,709 R 251,004 R
Cat 2: Capital goods (tonnes CO
2
e) 21,906 23,558 R 12,474 R
Cat 3: Fuel- and energy-related activities (not included in Scope 1 and 2) (tonnes CO
2
e) 4,126 4,233 4,625
Cat 4: Upstream transportation and distribution (tonnes CO
2
e) 29,286 41,628 R 65,546 R
Cat 5: Waste generated in operations (tonnes CO
2
e) 104 1,192 R 5,137 R
Cat 6: Business travel (tonnes CO
2
e) 5,958 4,566 R 8,733 R
Cat 7: Employee commuting (tonnes CO
2
e) 2,960 2,542 4,784
Cat 9: Downstream transportation and distribution (tonnes CO
2
e) 1,005 1,263 R –
Cat 12: End-of-life treatment of sold products (tonnes CO
2
e) 581 697 R 1,105 R
Scope 3 total (tonnes CO
2
e) 275,172^ 286,387 R 353,407 R
Scope 3 total (non-FLAG)
(tonnes CO
2
e)
4
224,286 239,773 281,182
Scope 3 total (FLAG)
(tonnes CO
2
e)
4
50,886 46,614 72,226
Note: Scope 3 categories not included are deemed not relevant to footprint and are excluded from target and reporting boundary. Category 14 has been removed from reporting scope
asemissions have been recategorised to align with GHG Protocol definitions.
4. Categories 1 and 2 are split between non-FLAG and FLAG emissions. All other categories are non-FLAG only.
^ This metric was subject to external independent limited assurance by Ernst & Young LLP (EY). For the results of that assurance, see EY’s Independent Limited Assurance Report
andBurberry’s Sustainability Basis of Reporting FY 2025/26 on Burberryplc.com.
R – Restated Figure. In FY 2025/26, we restated our Scope 3 baseline (FY 2018/19) and FY 2024/25 GHG inventories to reflect new industry LCA studies and emissions factors, methodological
enhancements, improved data availability, and to account for the latest GHG Protocol standards and guidance. This has adjusted our performance against our previous aggregated
(non-FLAG and FLAG) Scope 3 science-based target for FY 2024/25 from a 51.2% reduction (as reported in our Annual Report 2024/25) to a 19.0% reduction against our FY 2018/19 base year.
Further details on our methodology and restatements, including the original reported values, can be found in our Sustainability Basis of Reporting FY 2025/26 available on Burberryplc.com.
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/26 59

CHEMICAL AND POLLUTION MANAGEMENT
Introduction
As a luxury fashion brand, we use chemicals in our textile
manufacturing processes. This could potentially result in negative
environmental impacts if, for example, improper management
ofchemicals resulted in the contamination of water and/or soil.
Inaddition, if raw materials are incorrectly treated with harmful
chemicals, customer safety could be compromised. We believe
that promoting the responsible use of chemicals throughout our
supply chain is essential to ensuring the safety of our people and
the products we create, and for the protection of the environment.
We are committed to eliminating the use of hazardous chemicals
across our supply chain and supporting the fashion industry’s
transition towards zero discharge of hazardous chemicals.
This section outlines our approach to addressing potential
pollution impacts arising from supply chain activities. It also
addresses the actions we are taking to prevent and mitigate
chemical-related risks, including robust governance, detailed
monitoring and capacity building across our supply chain partners.
Approach
Our Chemical Management Programme ensures safer
products,reduced exposure for supply chain workers and
communities adjacent to our supply chain and cleaner water,
airand soil intheenvirons of our production sites. We are
committed toimplementing, monitoring and continuously
improving ourChemical Management Programme with the use
ofZero Discharge of Hazardous Chemicals (ZDHC) Roadmap
toZero Guidelines, Tools and Platforms for Input, Process and
Output focus areas, along with our Manufacturing Restricted
Substance List (MRSL), which is aligned with ZDHC’s
MRSL,andour Product Restricted Substances List (PRSL).
TheBurberryChemical Management Manual consolidates
allourprogrammerequirements.
Our approach is based on the three key pillars of the ZDHC
Roadmap to Zero: Input, Process and Output.
• Input focuses on the use of MRSL-conformant chemical
formulations. Supply chain adherence is monitored through
ZDHC reporting tools
• Process relates to the strengthening of suppliers’ chemical
management systems and alignment with best practices.
External verification is undertaken through the ZDHC Supplier
to Zero (S2Z) programme (Level 2) and we track the percentage
of products delivered by partners completing S2Z requirements
each year (see Metrics section on page62)
• Output addresses effluent quality, air emissions and product.
The ZDHC Wastewater Guidelines (WWG) provide a framework
to assess the presence of MRSL-related parameters in effluent,
as well as more broadly conventional pollutants across supply
chain facilities. Partners are required to conform to the guidelines,
with wastewater sampling conducted by ZDHC-approved
third-party laboratories. Results are reported annually on
Burberryplc.com. Any non conformity requires a root cause
analysis and corrective action plan, ensuring continuous
improvements in effluent quality. ZDHC Air Emissions Guidelines
also became available for supply chain implementation,
whichwe communicated across our supply chain for adoption.
Finally, on product, we undertake robust testing standards
across all our products to monitor PRSL conformance.
We assess supply chain partners’ chemical management
performance against clearly defined requirements across all
Input, Process and Output categories. Partners are expected
todemonstrate continuous improvement to meet our highest
standards and must develop and execute corrective action plans.
This framework supports the business in making informed and
responsible sourcing decisions.
Internally, we deliver ongoing training and awareness
programmes to relevant employees to ensure effective
implementation of our chemical management requirements.
Policies
Our Global Environmental Policy outlines our commitment to
eliminate harmful chemicals and prevent environmental pollution
across our supply chain. The chemical management requirements
within our Global Environmental Policy are regularly reviewed to
ensure latest guidelines are adopted by our Business Associates.
Our policy requires Business Associates to adhere to our MRSL,
which is aligned with the ZDHC MRSL. Additionally, we are
committed to the implementation of the ZDHC S2Z programme
across our supply chain to ensure best practices in chemical
management are adopted. We monitor conformance with our
MRSL and track adoption of the ZDHC S2Z programme across
oursupply chain. Progress against these measures is disclosed
inthe Metrics section on page 62.
Strategic Report | Sustainability at Burberry
Energy – Supply chain
FY 2025/26
Global EMEIA Asia Pacific
Electricity consumption
1
at direct Tier 1 supply chain partners (kWh) 12,784,240 4,389,085 8,395,155
Percentage of electricity consumption
1
from renewable sources at direct Tier 1
supplychainpartners (%) 44% 93% 18%
Note: data based on calendar year (1 January – 31 December). The scope of the metric includes primary data collected from direct Tier 1 supply chain partners only, representing 95%
ofproducts delivered. Internal manufacturing sites are excluded from this scope and are reported under ‘Energy – Own Operations’ data.
1. Covers purchased and self-generated and consumed electricity attributed to Burberry production.
Burberry Annual Report 2025/2660

To monitor their effectiveness and to drive continuous
improvement, we are also committed to adopting, monitoring and
disclosing wastewater quality against the ZDHC WWG; the results
are published annually on Burberryplc.com. In addition, all of our
supply chain partners must comply with our PRSL, which ensures
the safety of our products through robust testing standards.
More details of our Global Environmental Policy can be found
onpage 55.
Targets
Eliminate hazardous chemicals
Our goal is to eliminate the use of hazardous chemicals
across our supply chain.
We define annual aggregated supply chain performance targets
for the implementation of our Chemical Management Programme
requirements, aligned with the three key pillars of the ZDHC
Roadmap to Zero: Input, Process and Output (as outlined on page
60). These targets guide our progress towards eliminating the use
of hazardous chemicals across our supply chain. Sub-targets are
assigned to each business unit to strengthen accountability and
support informed decision-making.
Targets are defined in terms of percentage of product units
delivered by partners.
To achieve the aggregated supply chain performance target,
specific partner-level targets are assigned, with progress
reviewed monthly internally and, where appropriate, quarterly
with supply chain partners. Performance across the three areas
isdisclosed within the Metrics section (on page 62).
To report chemical management performance in our supply chain,
we rely on a dedicated ZDHC platform.
FY 2025/26 performance
In FY 2025/26, 93% of products were delivered by Tier 1
andTier2 supply chain partners who reported their chemical
inventory conformance against the ZDHC MRSL. Additionally,
wemaintained our FY 2024/25 progress with 93% of our Tier 1
and Tier 2 supply chain partners holding S2Z certification.
Forafull detailed breakdown of our S2Z achievements
inFY 2025/26, refer to the Metrics section on page 62.
The continued use of compliant chemicals and good chemical
management practices across our supply chain resulted in a high
level of conformity. In effluent, we achieved 99% conformance
with the ZDHC WWG MRSL parameters, 97% with conventional
parameters and 100% conformity with heavy metal requirements
in the ZDHC WWG. These results represent 85% of our mapped
wet processing partners across Tier 1 to Tier 3 who performed
wastewater testing during FY 2025/26 in line with the ZDHC
WWG, a 9% increase compared to the previous financial year.
Actions
1. Chemical Management Programme
Our Chemical Management Programme is applicable to all supply
chain partners involved in the manufacture of our products. We
continue to monitor implementation of the requirements outlined
in our Global Environmental Policy through annual internal and
external targets as outlined in the Targets section above.
In FY 2025/26, we strengthened our approach by expanding
technical support sessions to increase MRSL conformance in our
supply chain, where we worked closely with chemical formulators
to trial safer and high-performing alternatives.
While we require our supply chain partners to assess their
chemical management systems against the S2Z programme
requirements, we also played an active role in shaping the
nextversion of the ZDHC S2Z programme. During the year,
wereviewed the draft version, provided early feedback to ZDHC
andnominated key supply chain partners to participate in a
self-assessment pilot in November 2025. In addition, we nominated
several partners to join an on-site pilot scheduled for April to June
2026, supporting the continued evolution of S2Z as the leading,
industry-aligned framework.
In December 2025, we published our annual wastewater testing
trend analysis report on Burberryplc.com, outlining the results
ofeffluent testing carried out by Burberry’s supply chain partners
throughout the calendar year.
2. Capacity building
Capacity building remains the cornerstone of our Chemical
Management Programme. With the support of external
stakeholders such as ZDHC, chemical formulators and solution
providers, we continued to conduct knowledge-enhancing
sessions for our supply chain partners to assist them in their
chemical management journey. Following its launch in FY 2024/25,
we continued to strengthen our supply chain collaborative
learning community in FY 2025/26. During the period, we placed
greater emphasis on enabling our Tier 1 and Tier 2 partners to
lead the implementation of chemical management best practices
within their upstream supply chains. Through targeted training
modules and expanded peer-learning opportunities, our partners
increasingly drive improvements independently and support their
own suppliers in meeting our chemical management requirements.
3. Joint implementation
In FY 2025/26, we collaborated with external technical experts
todeepen our understanding of wastewater testing results
andtheir connection to suppliers’ chemical inventories and
manufacturing processes. This insight will support suppliers
inidentifying root causes more effectively and maintaining
bettereffluent quality over time.
Additionally, we continued to engage with our luxury peers,
third-party suppliers and external chemical experts to drive
collective progress on the chemical management roadmap.
In addition to being a longstanding member of the ZDHC, we
continue to play an active role in shaping industry guidelines,
participating in the Brand Advisory Group and several co-creation
taskforces. In 2025, our chemical management implementation
was recognised as ‘Champion’ for the fifth consecutive year,
which is the highest attainable level in ZDHC’s Brands to Zero
Leader programme.
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/26 61

WATER CONSERVATION
Introduction
We use raw materials, including cotton, wool and leather, to
create luxury fashion goods. The processes used to manufacture
these materials often rely heavily on water. If not responsibly
managed, water use across our supply chain could contribute
towater stress and the depletion of freshwater resources,
whichcould, in turn, have negative impacts on the environment.
This section sets out our approach to water conservation,
whichfocuses on increasing resource efficiency, assessing and
mitigating water risks, reducing our water impacts and increasing
water resilience across our manufacturing operations.
Approach
Our Water Conservation Programme seeks to minimise potential
negative impacts across our supply chain by working closely with
supply chain partners to strengthen levels of water resilience.
Our approach to managing water-related impacts and risks
begins with mapping our Tier 1 to Tier 3 supply chain to identify
facilities and their water-related risks, locating areas of high
water stress. These are defined as areas with high or very high
risk to water availability, adversely impacting the ability to meet
human or ecological demand for water. We work with our partners
to implement our Water Resilience Assessment, which acts as
aroadmap to improve water management by promoting a better
understanding of water demand, driving water efficiency and
recycling, and encouraging greater disclosure.
This assessment helps us identify potential hotspots, which
aresites where water management levels aredisproportionate
totheir levels of water intensity and risk. Allpartners undergoing
a water assessment are required to develop continuous
improvement plans to ensure their resilience level is maintained
or improved in subsequent assessments.
The frequency of reassessments is determined by the partner’s
resilience rating: facilities rated Green/Excellent are reassessed
every two years, Amber facilities every 18 months, while Red-rated
or Hotspot sites are prioritised and reassessed annually.
Continuous improvement is essential to address evolving water
risks and changes in water use, particularly for partners classified
as Red or Hotspot. To support this process, training and capacity
building sessions are delivered several times each year (both
inperson and online) to raise awareness of our programme
andstrengthen supply chain engagement on water risks.
We set targets to source more sustainable and certified raw
materials, including organic and recycled, which can significantly
reduce water impacts at the raw material extraction phase.
Moreinformation about our raw material targets can be found
onpage 68.
Metrics
Chemical management of supply chain partners
FY 2025/26 FY 2024/25 FY 2023/24
Tier 1 Tier 2 Tier 1 Tier 2 Tier 1 Tier 2
Percentage of products delivered by partners
who reported MRSL conformance
1
95% 91% 94% 89% 80% 74%
Average MRSL conformance
(bycountofchemicals)
1,2
71% 74% 62% 73% 54% 69%
Percentage of products delivered by
partnersassessed against the ZDHC S2Z
programme requirements
1
93% 92% 96% 90% 89% 88%
Percentage of products delivered by suppliers
rated Level 2 (previously called Progressive Level)
by the ZDHC S2Z programmerequirements
1
83% 86% 86% 79% 68% 57%
Percentage of products delivered by supply
chain partners who have disclosed their
wastewater testing as per the ZDHC
Wastewater Guidelines
3
90% 79% – 76% – 70%
Conformance to the ZDHC WWG
MRSLparameters – 99% – 99% – 99%
1. Includes supply chain partners Burberry sources from directly. Does not include or apply to subcontractors.
2. Conformant chemicals are those listed as such on ZDHC platforms. Other chemicals may not be registered and conformance information is not readily available. Conformity applies
tothe entire facility’s chemical inventory and is not specific to Burberry production.
3. In FY 2025/26, we updated our methodology to include direct and indirect Tier 1 supply chain partners. The scope of the metric now applies to direct and indirect Tier 1 and 2.
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/2662

Policies
As part of our Global Environmental Policy, we commit to assessing
the water risk in our supply chain and regularly monitor our water
withdrawal and consumption, including sources, destination and
wastewater volumes. We also commit to identifying water withdrawn
from areas of water stress and reducing water withdrawal across
our own operations. As detailed in our policy, we engage our
partners through our Water Conservation Programme to raise
awareness about water conservation and support responsible
water management practices across our supply chain. Our supply
chain partners are required to ensure safe water, sanitation and
hygiene at their facilities at all times. Inline with our commitments,
they must also assess the water risk of their manufacturing
facilities and report and track their water withdrawal and discharge.
More details of our Global Environmental Policy can be found
onpage 55.
Targets
Addressing hotspots in our supply chain
We aim to have zero hotspots in our supply chain by2030
1
.
To achieve this target, we work closely with our direct supply
chain partners to conduct Water Resilience Assessments that
focus on three key pillars: basin status and water risk (using the
WWF Water Risk Filter); sites’ water intensity; and how partners’
water management practices compare to best-in-class standards.
Together, these three variables help us identify potential hotspots.
These assessments are designed to be cascaded through
thesupply chain. This means upstream suppliers’ results are
weighted into our direct supply chain partners’ own assessment
and progress is capped if hotspots are present within their own
key supply chain. This cascading approach ensures we focus
efforts where we have the greatest risk and impact, while also
spreading water resilience principles upstream and surfacing
anyrelevant risks.
FY 2025/26 performance
In FY 2025/26, two facilities were identified as hotspots among
our direct partners, with results remaining consistent with the
previous year. This compares to five facilities in our baseline year,
FY 2020/21. We monitor these partners quarterly by reviewing
thestatus of their action plans to ensure improvements are made
to change their hotspot status.
Actions
1. Water withdrawal accounting
During the financial year, we refined our accounting methodology
for water withdrawals across our wet processing manufacturing
facilities, including subcontracted partners and upstream supply
chain partners from Tier 1 to Tier 3. Quantifying the volume of
water withdrawn in the manufacturing of our products enables us
to better understand our impacts and dependencies and to more
effectively manage water-related risks. Our approach focuses
onfacilities where there is a material use of water involved in the
manufacturing processes. These include facilities carrying out
wet operations, such as dyeing, finishing and tanning of leather.
The information received from our water accounting enables
ustoidentify facilities operating in higher water stress areas
andsupports us in making informed decisions relating to our
Water Conservation Programme and targets.
2. Capacity building within supply chain
In FY 2025/26, 86% of products were delivered by direct
Tier1and 2 supply chain partners assessed against our Water
Conservation Framework. The percentage of products delivered
by partners with low levels of water resilience (Red/Hotspot)
decreased from 3.5% in FY 2024/25 to 2.3%, while the percentage
of products delivered by partners with good levels ofwater
resilience (Green/Excellent) increased from 59.5% to 69.2%.
Forthe partners identified as Red/Hotspot, action plans were
requested and monitored on a quarterly basis to review the
statusof the actions and ensure progress.
We have improved our resilience profile annually through partner
engagement, capacity building and direct support. For example,
in FY 2025/26, we ran several in-person and online sessions
which covered all of our Sustainable Manufacturing programmes
(Water Conservation, Chemical Management, Energy and Waste).
These capacity building events aim to enhance our supply chain
partners’ knowledge by providing external stakeholder input
andsharing best practice. We also delivered a Sponsorship
Programme, which aims to bring together supply chain partners
that are more advanced in their sustainability agenda to provide
support and encouragement to partners at earlier stages in their
journey. Sponsored partners work towards their set objectives
(related to water conservation, chemical management or energy)
and are helped by their Sponsor to achieve their targets.
3. Corporate Water Leaders
We are members of the Corporate Water Leaders (CWL), a global
network of working groups dedicated to addressing industrial
water challenges and advancing water stewardship. The initiative
is led by Global Water Intelligence (GWI). We participate in
theTextile and Leather Taskforce, which brings major brands
together to strengthen operational resilience and promote more
environmentally sustainable practices across the industry’s
globalsupply chain. Together with other brands in the Taskforce,
we developed a Common Water Framework that outlines the
keyguiding principles for the fashion industry on water, while
leveraging existing tools and initiatives. It provides clear direction
and a practical roadmap for the industry to support measurable
progress against water-related goals through supply chain
engagement and targeted actions. By adopting a shared approach
among brands, these actions become scalable and more impactful.
The framework aims to align and streamline the growing number
of requirements from brands, thereby reducing the reporting
burden on the supply chain. It is structured around three key
pillars of risk and impact, governance and action and is aligned
with our Water Conservation Framework, enabling us to address
industrial challenges through collective action.
In FY 2025/26, the framework was piloted with selected suppliers
and subsequently launched for public consultation. As part of
thisconsultation process, an open stakeholder event was held
topresent the framework and encourage participation in providing
feedback from industry stakeholders.
Strategic Report | Sustainability at Burberry
1. Scope of the target applies to direct supply chain partners covered by our water resilience assessments, representing at least the top 80% of our supply chain by volume
ofproductdelivered.
Burberry Annual Report 2025/26 63

5. Raw material sourcing and innovation
Given the impacts and dependencies our business activities
haveon water related to raw material farming and production,
wearealso taking steps to mitigate our impacts and risks at
theraw material sourcing phase of our value chain. We are doing
thisby evolving our responsible sourcing criteria, ensuring they
align to our ambition and industry best practice. These actions
reflect our approach to protecting biodiversity and ecosystems.
We embed best practice environmental management in Burberry’s
certified or responsibly sourced raw material targets, including
initiatives related to managing water impacts. For more information
about our raw material targets see page 68.
Global Organic Textile Standard (GOTS) and Organic Cotton
Standard (OCS) certifications have been included in our
Sustainable Raw Materials Portfolio, for instance, as less water
isrequired to cultivate organic cotton than conventional virgin
cotton. We recognise opportunities lie in driving material
innovation. Bydeveloping new materials and technologies
todeliver high-quality fabrics we can at once reduce our
environmental impact and deliver products with sustainability
benefits. Forexample, in FY 2025/26, we continued to explore
waterless dyeing technologies as well as safer chemistry, which
allow ustomaintain performance and aesthetics while reducing
our waterimpact. These techniques represent an opportunity
tohelpmitigate the risk of water stress by replacing
conventionaldyeingtechnology.
4. Extreme weather events mapping
Every year we conduct a supplier survey to map the occurrence and impact of extreme weather events in our value chain. Our aim
istoraise awareness among our stakeholders and support strategies which help to prevent and mitigate water-related risks. In addition,
thissurvey helps us understand the impact of these events across our Tier 1 to Tier 3 supply chain. In 2025, 109 supply chain partners
responded to our survey. Supply chain partners were asked whether they experienced any extreme weather events during the previous
calendar year, followed by additional questions to capture the type of event, the number of sites affected and the nature ofthe impacts,
including property damage, operational disruption, or effects on goods and inventory, as well as impacts on people and the environment.
In 2025, 10% of respondents reported having experienced at least one extreme weather event, a percentage in line with results from the
previous year’s survey. In 2023, 22% of respondents had reported extreme weather events.
Supply chain partners impacted by extreme weather events
2025 2024 2023
Percentage of supply chain partners impacted by extreme weather events 10% 10% 22%
Note: data based on calendar year (1 January to 31 December).
Among those impacted, heavy storms and typhoons remain the most frequently reported events across our supply chain, identified
by50% of respondents over thepast two calendar years. Flooding ranks as the second most common event. Water scarcity was reported
by8% of impacted partners in 2023, whileno such incidents were recorded in 2025. In 2025, partners selecting ‘other’ identified heavy
snowfall and wildfires as additional climate-related events.
Breakdown of extreme weather events
2025 2024 2023
Storm/typhoon 50% 50% 38%
Flooding 25% 20% 29%
Scarcity 0% 0% 8%
Heatwave 8% 10% 8%
Other 17% 20% 17%
Note: data covers percentage of respondents impacted by weather event. Data based on calendar year (1 January to 31 December).
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/2664

Metrics
Water usage of supply chain partners
FY 2025/26 FY 2024/25
Direct Tier 1 Direct Tier 2
Indirect and
upstream Direct Tier 1 Direct Tier 2
Indirect and
upstream
Total water withdrawal (m
3
) 42,543 278,174 474,951 29,524 240,502 464,966
Total water discharge (m
3
) 38,316 252,416 389,165 28,215 218,617 418,671
Total water recycled and reused (m
3
) 488 5,647 2,151 508 7,870 1,264
Total water consumption (m
3
) 4,227 25,758 85,786 1,308 21,886 46,294
Total water withdrawal in water-stressed
areas(m
3
) 0 5,393 32,361 3 5,163 9,788
Note: direct Tier 1 and direct Tier 2 partners include supply chain partners Burberry directly sources from that have wet processing facilities where the main material procured is textile or
leather. Indirect and upstream covers partners of Tier 1 and Tier 2 (i.e. subcontractors) and Tier 3.
Water assessment of direct
1
supply chain partners
FY 2025/26 FY 2024/25 FY 2023/24
Tier 1 Tier 2 Tier 1 Tier 2 Tier 1 Tier 2
Supply chain coverage 89% 83% 88% 86% 86% 80%
Green/Excellent 82% 56.5% 64% 55% 45% 51%
Amber 7% 22% 23% 25% 40% 23%
Red/Hotspot 0% 4.5% 1% 6% 1% 7%
Note: figures are weighted based on the percentage of product units delivered by direct supply chain partners.
1. Includes Tier 1 and Tier 2 supply chain partners Burberry sources from directly. Does not include or apply to subcontractors.
BIODIVERSITY AND ECOSYSTEMS
Introduction
Our business activities, which include the sourcing of raw
materials and the use of paper-based packaging, interact
withnature inways that are associated with the key biodiversity
pressures identified by the Science Based Targets Network
(SBTN). Thesepressures include land, freshwater and marine
usechange, overexploitation of natural resources, pollution
andclimate change. Given the impacts and dependencies
ourbusiness activities have on biodiversity and ecosystems,
itisessential thatwe act toidentify, assess and mitigate
biodiversity loss andsupport itsrecovery.
We are committed to protecting nature and contributing to global
efforts to tackle nature loss. The ongoing management of natural
capital requires a concerted approach to protecting biodiversity
and ecosystems across our value chain.
This section outlines how we assess, manage and mitigate
nature-related impacts across our operations and broader
valuechain. During FY 2025/26, we strengthened our disclosure
approach by becoming adopters of the Taskforce on Nature-related
Financial Disclosures (TNFD), reinforcing our commitment to
transparent reporting and continuous improvement in managing
nature-related risks and opportunities.
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/26 65

Strategic Report | Sustainability at Burberry
TNFD index
Below is a TNFD index outlining where we have reported on key disclosures.
Pillar Ref TNFD recommended disclosure
Disclosure location within
Annual Report 2025/26
Governance
A Describe the Board’s oversight of nature-related
dependencies, impacts, risks andopportunities
Governance and management
section, page 43
B Describe management’s role in assessing and managing
nature-related dependencies, impacts, risks and opportunities
Strategy
A Describe the nature-related dependencies, impacts, risks and
opportunities the organisation has identified over the short,
medium and long term
Climate Change section, page 56
Biodiversity and Ecosystems section,
page 67
B Describe the effect nature-related dependencies, impacts,
risks and opportunities have had on the organisation’s
business model, value chain, strategy and financial planning,
as well as any transition plans or analysis in place
D Disclose the locations of assets and/or activities in the
organisation’s direct operations and, where possible,
upstream and downstream value chain(s) that meet the criteria
for priority locations
Risk and
impact
management
A(i) Describe the organisation’s processes for identifying,
assessing and prioritising nature-related dependencies,
impacts, risks and opportunities in its direct operations
Chemical and Pollution Management
section, page 60
Water Conservation section, page62
Biodiversity and Ecosystems section
pages 67 to 68
A(ii) Describe the organisation’s processes for identifying,
assessing and prioritising nature-related dependencies,
impacts, risks and opportunities in its upstream
anddownstream value chains
B Describe the organisation’s processes for managing nature-
related dependencies, impacts, risks and opportunities
C Describe how processes for identifying, assessing, prioritising
and monitoring nature-related risks are integrated into and
inform the organisation’s overall risk management processes
Metrics and
targets
A Disclose the metrics used by the organisation to assess
andmanage material nature-related dependencies, impacts,
risks and opportunities in line with its strategy and risk
management processes
Chemical and Pollution management
section, pages 61 to 62
Water Conservation section,
pages63 to 65
Biodiversity and Ecosystems section,
pages 68 to 70
B Disclose the metrics used to assess and manage
dependencies and impacts onnature
C Describe the targets and goals used by the organisation
tomanage material nature-related dependencies, impacts,
risks and opportunities and performance against these
Burberry Annual Report 2025/2666

Approach
In FY 2025/26, we identified biodiversity as being material
toourbusiness. This assessment was based on the impacts our
activities could have on the extent and condition of ecosystems
and as a potential driver of biodiversity loss. As a result, we have
continued to expand our assessment of these impacts across
ourvalue chain, guided by the TNFD LEAP approach (Locate,
Evaluate, Assess, Prepare).
Our assessment began with a materiality screening to identify
theunderlying nature-related pressure categories material to our
economic activities, enabling us to then carry out more detailed
impact- and activity-specific assessments, as detailed below.
Materiality screening
Our materiality screening was first conducted in FY 2024/25
using the Materiality Screening Tool developed by the SBTN,
which considered each stage of our business model (see page 12).
Updated in FY 2025/26, our screening focuses on 12 pressure
categories, grouped by five drivers of nature loss defined by the
Intergovernmental Science-Policy Platform on Biodiversity and
Ecosystem Services (IPBES) in the 2019 Global Assessment.
These drivers consist of: land, water and sea use change; resource
exploitation; climate change; pollution; and invasive alien species.
Our screening identified material pressures on ecosystem
andwater use, as well as pollutants and GHG emissions. Soil
pollutants linked to raw material sourcing, particularly in relation
to the production of natural fibres and leather, were also identified,
as were material pressures linked to the production of finished
products. Risks associated with such pressures, including
biodiversity loss and land use change (for example, deforestation),
have the potential to disrupt material and product supply,
reducethe quality of materials, increase input costs and impact
operational continuity. These pressures may also give rise
toheightened regulatory scrutiny and reputational risk.
The results of our materiality screening have led us to undertake
further location-specific risk assessments for biodiversity loss
and land use change, complementing our approach to identifying
and managing impacts and risks related to water use (detailed
onpages 62 to 65), GHG emissions (detailed on pages 48 to 60),
and pollution (detailed on pages 60 to 62).
Location-specific biodiversity risk assessment
Following the results of our materiality screening, in FY 2025/26,
we advanced our location-based assessment of biodiversity risks
across our operations and key supply chain partner sites. As the
most significant pressures identified in our materiality screening
occur in our upstream value chain, we extended our assessment
to Tier 1 supply chain partners, which represent approximately
80% of our finished goods production.
Consistent with the TNFD LEAP approach, we conducted a
geographic screening ofapproximately 500 direct operational
sites and around 100 strategic supply chain partners’ sites globally.
Using the WWF Biodiversity Risk Filter, we assessed each site’s
proximity to and potential interaction with areas of high biodiversity
importance and ecosystem integrity. This included Protected
andConserved Areas, Key Biodiversity Areas (KBAs) and other
internationally recognised important biodiversity areas.
The analysis indicates that approximately 30% of assessed sites
are located within orin close proximity to areas classified as having
high or veryhigh biodiversity sensitivity. These findings provide
an evidence-based foundation for prioritising locations for further
analysis and management.
To support progress towards our deforestation targets, in
FY 2025/26, we further developed our approach to supply chain
mapping, risk assessments, monitoring and verification for primary
deforestation-linked commodities
1
. This approach includes direct
engagement with suppliers to verify the deforestation-free status
of primary deforestation-linked commodities.
Summary of response to risk assessments
In response to our materiality screening and risk assessments,
weconsider the management of nature-related pressures across
our sourcing and production activities, following the SBTN Nature
Action Framework (AR3T). The framework outlines measures that:
• avoid and reduce negative impacts on biodiversity and support
restoration and regeneration practices so that the state of nature
can recover; and
• transform underlying systems to address the drivers
ofnatureloss.
In particular, to reduce negative impacts on biodiversity,
weensure environmental considerations are factored into
thedecisions we take with respect to the design, sourcing and
manufacture of our products. For example, we set a target for all
key raw materials in our products to be certified or responsibly
sourced by FY 2029/30, which is driven by our Sustainable Raw
Materials Portfolio (available on Burberryplc.com). This portfolio
sets out the accepted certification and responsible sourcing
criteria across our raw materials. It is regularly reviewed to
ensurethe criteria align to our ambition and industry best practice.
Inaddition, biodiversity impacts are reviewed as part of the
implementation of our sourcing controls process, which embeds
environmental and social considerations into our sourcing decisions
to inform our Product strategy. Furthermore, as part ofthis
process, nature-related criteria are integrated into supply chain
partner onboarding and contractual requirements. This process
allows us to identify, mitigate and manage nature-related risk
inour upstream value chain and is designed to uphold high
standards of environmental stewardship, ethical trading and
product integrity.
Our Water Conservation (pages 62 to 65), Climate Change
(pages48 to 60) and Chemical and Pollution Management (pages
60 to 62) sections provide further details regarding ourresponse
to our water-, climate- and pollution-related risk assessments.
The following pages provide details on our policies, targets and
actions related specifically to our management of the impacts
ofour activities on biodiversity loss and land use change.
Policies
Our Global Environmental Policy establishes our aim to protect
nature across our value chain. This commits us to assessing
andreporting our biodiversity impacts, dependencies, risks and
opportunities in line with best practice, including guidance from
the TNFD. We also commit to ensuring that all our marketing
campaigns and activities follow our Sustainability Principles for
Marketing and Production, which include strict criteria on the
management of biodiversity risks and nature conservation.
Strategic Report | Sustainability at Burberry
1. Primary deforestation-linked commodities are defined as Burberry material commodities that are either directly derived from, or are derivatives of, commodities contributing most
significantly to deforestation globally. Such commodities include bovine leather, viscose, wood and paper.
Burberry Annual Report 2025/26 67

Strategic Report | Sustainability at Burberry
1. Scope of the target applies to all main materials and down filling, where more than 50% of the composition within the specific material is either cotton; synthetics, including nylon,
polyester, PU and TPU; viscose; wool; leather; and feather and down. For further information on our updated calculation methodology, see Metrics section on page 70.
2. We rely on transaction certificates collected to support our target of 100% Responsible Down Standard certification to trace down and feather across our supply chain.
^ This metric was subject to external independent limited assurance by Ernst & Young LLP (EY). For the results of that assurance, see EY’s Independent Limited Assurance Report
andBurberry’s Sustainability Basis of Reporting FY 2025/26 on Burberryplc.com.
Through our Global Environmental Policy, our Business Associates
are required to comply with applicable nature protection legislation
and to ensure that materials used in our products, packaging
orgoods not for resale have not directly or indirectly caused
orcontributed to deforestation or forest degradation. More details
of our Global Environmental Policy can be found onpage 55.
Our work on raw material sourcing is guided by our Responsible
Raw Materials Sourcing Policy. This policy (available on
Burberryplc.com) outlines our requirements for Business Associates
and colleagues, as well as our commitment to ensuring that our
materials are sourced in a responsible way that respects human
rights and minimises negative environmental impacts. For example,
we do not permit the use of any material listed as endangered
onthe International Union for Conservation of Nature and Natural
Resources (IUCN) Red List of threatened species or considered
endangered within a national border by an individual nation state.
In addition, all animal and plant materials used by Burberry
mustbe sourced in compliance with CITES (the Convention on
International Trade in Endangered Species of Wild Fauna and
Flora). The policy also specifies our requirements with respect
topackaging, animal welfare and testing.
Targets
Supporting zero deforestation
We are committed to contributing to the sustainable
management of natural forests and supporting zero
deforestation across our products and supply chain
byFY 2025/26.
We continued to take action in FY 2025/26 to enhance our
management of our deforestation-related risks (see Approach
section on page 67). As FY 2025/26 was the final year of the
above deforestation commitment, we have established a new
target for FY 2026/27 onwards to achieve no deforestation
acrossour primary deforestation-linked commodities (bovine
leather, viscose, wood and paper) by FY 2029/30. This target
isintended to enhance our alignment with the requirements of
theAccountability Framework initiative (AFi) and to ensure greater
robustness in the scope, definitions and assessment methodology
of Burberry’s deforestation risk management.
FY 2025/26 performance
Progress towards our commitment to support the sustainable
management of natural forests and zero deforestation is measured
by the enabling targets and metrics in place which support
implementation. These include our performance on certified
orresponsibly sourced viscose (see the Metrics section on page
70) and the percentage of Forest Stewardship Council (FSC
®
)-
certified paper-based packaging we source (see Metrics section
on page 73).
Starting from FY 2026/27, to assess progress against our
newtarget we will report annually the percentage of primary
deforestation-linked commodities assessed as meeting our
deforestation-free requirements.
Raw materials sourcing
100% of key raw materials in our products to be certified
orresponsibly sourced by FY 2029/30 (as defined in our
Sustainable Raw Materials Portfolio)
1
.
FY 2025/26 performance
In FY 2025/26, 86%^ of key raw materials in our products were
certified or responsibly sourced (as defined in our Sustainable
Raw Materials Portfolio). Six key raw materials (cotton; synthetics,
including nylon, polyester, polyurethane (PU) and thermoplastic
polyurethane (TPU); viscose; wool; leather; and feather and down)
are included in the scope of our target. These represent over 90%
of the total volume (in weight) of materials within our products.
More details of our target calculation methodology, including
exclusions, can be found in our Sustainability Basis of Reporting
FY 2025/26 available on Burberryplc.com.
Traceability of raw materials
Continue to strengthen traceability approach of Burberry’s
raw materials.
Traceability remains a key enabler for the delivery of our
environmental and social programmes. For Burberry, traceability
underpins our approach to responsible raw material sourcing,
providing the transparency needed to verify environmental and
social standards across our supply chain. We set ourselves a
target in FY 2022/23 for 100% of key raw materials to be traceable
by 2030. Since then, we have been working with a third-party
traceability tool to gain the transparency needed to identify,
assess and manage environmental and social risks within our
supply chain. We have evolved our approach to traceability as our
understanding of our supply chain has deepened, and recognise
the need to cover a broader range of raw materials to strengthen
our supply chain transparency.
In response to an evolving regulatory landscape, we are moving
from a time-bound target to a more flexible, comprehensive
commitment to continue to strengthen our traceability approach
of Burberry’s raw materials. We believe this will help us gain
greater visibility of our supply chain and enable regulatory
readiness. This change in target reflects our repositioned
Traceability Programme which is now aligned to a risk-based
approach and our business strategy.
FY 2025/26 performance
With the realignment of our traceability commitment, we have
undertaken supply chain mapping. To date, in line with our
certified and responsibly sourced raw materials programme,
wehave mapped 91% of our key
2
raw materials to Tier 2 (country
of raw material manufacturing). For strategically important raw
materials, progress has extended upstream with 66% of cotton
and 58% of bovine leather mapped to Tier 4 (country of raw
material production, for example, country of farming).
Burberry Annual Report 2025/2668

Strategic Report | Sustainability at Burberry
Actions
Managing our material nature-related impacts, risks and
opportunities means implementing actions following the
AR3Tapproach.
1. Avoid and reduce
We continue to take steps to avoid and reduce our impacts
onnature associated with our raw material sourcing.
To support the identification of our nature-related impacts,
inFY 2025/26, we continued to expand our use of a third-party
traceability platform with supply chain partners to standardise
data collection across our supply chain and enable enhanced
visibility of our sourcing locations. Through our traceability
programme, we are developing and delivering a series of holistic
actions needed to strengthen our identification and management
of risks and opportunities associated with our raw material sourcing.
Collaborating to manage our nature-related impacts, our
Corporate Responsibility and Supply Chain teams implement
sourcing controls in our raw material procurement processes
tovalidate the country of origin at each stage of production.
These controls ensure we have robust coverage of our supply
chains to manage and mitigate environmental and social risks
andimpacts associated with our sourcing. This process aligns with
our certified and responsibly sourced raw materials programme,
which independently verifies country of origin through certification.
The insights obtained from our Traceability Programme are
embedded into broader risk management and responsible
sourcing activities to inform decision-making activities within
thebusiness.
During the year, we also continued to evolve our responsible
sourcing criteria to ensure they align with our ambitions and
industry best practice (see our Sustainable Raw Materials Portfolio
on Burberryplc.com for details). Reflecting the benefitsof
regenerative farming practices on climate, soil heath, biodiversity,
animal welfare, social equity and farmer livelihoods, this year we
expanded our Sustainable Raw Materials Portfolio to encompass
regenerative standards including Regenagri, Nativa Regen and
ZQ+. We also delivered training to colleagues working closely
with these fibres, including our Product Development, Sourcing,
Design, Raw Materials and Merchandising teams, to enhance
their understanding of the benefits of regenerative materials
andassociated positive environmental impacts.
In FY 2025/26, we maintained our performance across leather,
viscose and down and feather with 100% of these materials
beingcertified or responsibly sourced (see Metrics section
onpage 70 for more details). Certified wool increased from 58%
inFY 2024/25 to 76% in FY 2025/26. As part of our Autumn 2025
collection, we introduced our first scarf crafted from 100% British
wool, traceable to individual farms, commemorating 125 years
ofpartnership with family-run Scottish mill Johnstons of Elgin.
The scarf was made on traditional dobby looms using wool from
Bluefaced Leicester sheep.
In addition to our responsible sourcing, we also completed a
closed-loop textile-to-textile recycling pilot for our Spring 2026
ready-to-wear collection. This pilot featured a womenswear jacket
created using as its main material 100% recycled nylon, which
was derived entirely from Burberry production offcuts. We continue
to assess opportunities to scale and expand our textile-to-textile
recycling programmes as part of our broader ambition to support
circular material flows and reduce reliance on virgin resources.
For more details of our circular business models see pages 71to72.
2. Restore and regenerate
Between 2021 and 2025, Burberry partnered with PUR to support
12 Australian wool farmers in adopting regenerative farming
practices. As part of the initiative, the farmers, who were certified
by the Responsible Wool Standard (RWS), focused on improving
soil health, biodiversity and pasture resilience through enhanced
farm management. This included implementing practices such
asseeding new pasture grasses, setting aside wildlife corridors
and installing new fencing and paddocks to allow more
rotationalgrazing.
Burberry also continues to support the Hainan Net-Zero Project
incollaboration with the Department of Forestry, the Hainan
Bureau of International Economic Development and the Hainan
Reform and Development Research Foundation. This initiative
isin itsthird year and is dedicated to ecological conservation and
restoration efforts across Hainan, China, with a particular focus
on preserving the island’s tropical rainforests, mangrove
ecosystems and diverse habitats.
3. Transform
As part of our commitment to reducing the environmental impact
of the raw materials we source, we recognise that meaningful
progress can only be achieved through strong industry
collaboration. In FY 2025/26, our efforts focused on two
ofourcore raw materials, cotton and cashmere.
As a signatory to The Fashion Pact, we support its mission to
safeguard nature by accelerating collective action across the
fashion sector. Through The Fashion Pact’s ‘Unlock’ programme,
we are supporting the development of financial and technical
mechanisms that encourage cotton farmers to adopt
lower-impact agricultural practices.
In support of our responsible sourcing of cashmere, we have
taken an active role in cross-industry research studies to
strengthen understanding of the material’s environmental
footprint. From 2022 to 2025, we participated in a Life Cycle
Assessment (LCA) study on cashmere production led by Textile
Exchange. This initiative established a robust methodology for
evaluating the environmental impacts associated with cashmere
and provided important insights into its contribution to GHG
emissions. The findings serve as a foundation for continued
industry collaboration to advance the sustainability
ofcashmeresupply chains.
In FY 2025/26, we also commenced participation in the UK Nature
Transition Plan Pilot led by the Green Finance Institute and the
TNFD UK Consultation Group. The pilot programme supports UK
businesses in integrating nature into corporate transition planning.
Our participation reflects our commitment to strengthening
nature-related governance, strategy and risk management
inlinewith the TNFD framework.
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Strategic Report | Sustainability at Burberry
Metrics
Certified or responsibly sourced key raw materials
FY 2025/26
FY 2024/25
Restated FY 2023/24
Percentage of key raw materials in our products certified or responsibly sourced
(as defined in our Sustainable Raw Materials Portfolio) 86%^ 90% R 55%
Percentage of certified or responsibly sourced cotton 87% 97% 56%
Percentage of certified or responsibly sourced synthetics (nylon, polyester, PU and TPU) 81% 84% 53%
Percentage of certified or responsibly sourced viscose 100% 100% 100%
Percentage of certified or responsibly sourced wool 76% 58% 27%
Percentage of leather from certified tanneries 100% 100% 100%
Percentage of certified or responsibly sourced feather and down 100% 100% 100%
Note: scope of the target applies to all main materials and down filling, where more than 50% of the composition within the specific material is either cotton, synthetics (nylon, polyester,
PU and TPU), viscose, wool, leather or feather and down. These materials are defined as key as they make up over 90% of the total volume (in weight) of main materials within our products.
^ This metric was subject to external independent limited assurance by Ernst & Young LLP (EY). For the results of that assurance, see EY’s Independent Limited Assurance Report
andBurberry’s Sustainability Basis of Reporting FY 2025/26 on Burberryplc.com.
R – Restated figure. The total figure for FY 2024/25 has been restated to reflect a change in calculation methodology which was made in FY 2025/26. The change in methodology
istofocus on those raw materials with well-established certification schemes or which meet responsible sourcing criteria as defined within our Sustainable Raw Materials Portfolio
andwhich are already included within our target scope. Therefore, the new calculation methodology accounts for only those key main materials in scope of the target. In previous years
allmain materials were included in the calculation. Raw materials previously included in the accounting, but not in the target scope, have been removed. This has adjusted our performance
for FY 2024/25 as the difference in the reported figure was greater than our 5% threshold for restatement.
More information on our updated calculation methodology can be found in our Sustainability Basis of Reporting FY 2025/26 available on Burberryplc.com.
Key raw materials
Percentage of product by volume
FY 2025/26 FY 2024/25 FY 2023/24
Cotton 44% 48% 44%
Synthetics (nylon, polyester, PU and TPU) 20% 24% 24%
Viscose 0.2% 0.2% 0.5%
Wool 12% 10% 10%
Leather 8% 7% 10%
Feather and down
1
3% 3% 2%
Note: percentage of product by volume refers to the percentage of total number of products containing the commodity as a main material. Only raw materials with FY 2029/30 certification
targets, as of FY 2025/26, are included in this table. This means that the aggregate percentage of all materials referenced does not equal 100% of product volume.
1. Feather and down refers to the percentage of products containing feather and down filling as opposed to the percentage of products with feather and down as main materials.
Traceability of key
2
raw materials
FY 2025/26
Level of mapping
Percentage
mapped
Cotton Back to Tier 2 91%
Back to Tier 4 66%
Synthetics (nylon, polyester, PU and TPU) Back to Tier 2 91%
Viscose Back to Tier 2 86%
Wool Back to Tier 2 95%
Leather (bovine) Back to Tier 2 82%
Back to Tier 4 58%
Note: Tier 2 refers to country of raw material manufacturing. Tier 4 refers to country of raw material production, for example, country of farming.
2. We rely on transaction certificates collected to support our target of 100% Responsible Down Standard certification to trace down and feather across our supply chain.
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RESOURCE USE AND CIRCULAR ECONOMY
Introduction
We are conscious that the resources used to create our products
and packaging could result in negative environmental impacts,
including excessive waste generation and environmental
degradation as a result of resource depletion.
We also recognise that, guided by our Burberry Beyond
Sustainability strategy, we have developed business practices
designed to deliver positive impacts for the environment.
Theseinclude driving a more circular economy to extend product
life and sustainable packaging initiatives. We are dedicated to
reducing the impacts of our material and product use by scaling
our circular efforts and minimising theenvironmental and social
impacts within our value chain.
This section details our work across our circular business models,
packaging and waste.
1. Circular business
Approach
We are continuously working to embed circularity across the
lifecycle of our products, ensuring they are designed to be used,
cared for and valued for longer. Through our circular business
models and global ReBurberry aftercare services we extend
product life, preserve craftsmanship and deepen the emotional
connection between our customers and their Burberry products.
By keeping products in use through resale, restoration and repair,
we aim to create lasting value while responding to evolving
consumer expectations.
Targets
Continue to evolve our aftercare offer and trial new
circularbusiness models.
FY 2025/26 performance
At the end of FY 2025/26, 385 stores across 32 countries
andterritories offered one or more of our global ReBurberry
aftercareservices. During the year, over 41,000 products were
repaired orrefreshed, representing a 9% year-on-year increase.
Foradetailed breakdown of our ReBurberry aftercare services,
see page 72.
We also continued our resale initiatives in the UK and USA
through our partnership with Vestiaire Collective and further
evolved our Trench Restored offering. In addition, we completed
our second ‘Reimagining Materials’ competition in partnership
with the London College of Fashion.
Actions
Our circular business models currently consist of Resale,
Remake, Restored, Repair and Refresh. In FY 2025/26, we
madethe decision to stop Rental based on the valuable insights
gained through our partnerships with MWHQ, Cocoon and HURR.
Thisshift allows us to deepen our focus on the services that deliver
the greatest long-term impact for our customers. Weprioritise
giving products a second life through resale, expertly restoring
our iconic trench coats and inspiring the next generation
ofdesigners to reimagine existing materials through Remake.
Inparallel, we continue to explore opportunities to evolve and
enhance our circular offering.
We seek to engage our customers on the circularity of our
products through our partnerships and our ReBurberry services.
Wealso deliverengagement opportunities toraise awareness
onthe topic. InFY 2025/26, we hosted a panel discussion
inourRegent Street store on sustainable luxury and circular
business models featuring the CEO of HURR and the co-founder
of Vestiaire Collective. Customers were able to engage directly
with our Aftercare Services team based in the Burberry factory
inCastleford, Yorkshire, and gain insight into thecraftsmanship
involved in making our Heritage Trench Coats.
1. Resale
During FY 2025/26, we continued our partnership with global
luxury resale platform Vestiaire Collective in the UK and the USA.
On the Burberry x Vestiaire Collective platform, customers can
trade in women’s outerwear, ready-to-wear, shoes and handbags
as well as men’s outerwear, in exchange for a Burberry gift card,
which can be used in store or online. Pre-loved Burberry pieces
are available to purchase globally through Vestiaire Collective.
Asa result of our partnership with Vestiare Collective, we have
garnered insights into how customers are engaging with
pre-loved Burberry items.
2. Restored
We continue to celebrate our trench coat, exploring new
andinnovative ways to bring the iconic product to life for our
customers. Through our Trench Restored initiative, trench coats
dating from pre-1999 are carefully sourced and individually
authenticated, repaired, cleaned and reproofed in the Burberry
factory in Castleford, Yorkshire. In FY 2025/26, we hosted
apop-up showcasing a collection of restored trench coats
inourRegent Street store.
We continued to source and restore pre-1999 trench coats
throughout FY 2025/26 to be sold at client events.
3. Remake
Through our Remake programmes, we aim to inspire our customers
and future designers to reimagine their products and materials
innew ways.
In the UK, USA and Mainland China, we continued our Cashmere
Upcycle service, which enables customers to have their Burberry
cashmere scarf repaired using darning techniques and custom
embroidery. The service allows customers to extend the life
oftheir products while also offering them a bespoke finish
forgarments they love.
We also conducted our second ‘Reimagining Materials’
competition in partnership with the London College of Fashion.
Titled ‘Reimagined Trench’ and celebrating 170 years of Burberry,
this year’s competition challenged students to reimagine our
most iconic piece. We tasked students with repurposing our
materials in a creative and innovative way, providing them with
anopportunity to gain first-hand experience of managing a real
industry brief. Over 130 students applied, and we selected nine
finalists and one winner. The winning student was awarded
acashprize and an internship at Burberry.
Strategic Report | Sustainability at Burberry
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4. Repair and Refresh
Our global ReBurberry aftercare services demonstrate our
commitment to helping our customers to care for their products
for longer. In FY 2025/26, we focused on efficiency and embedding
best practice across the delivery of our aftercare services. During
the financial year, we aligned scarf services across all Scarf Bar
locations and completed the global rollout of repair services for
our trench coats and outerwear. We also launched our Jewellery
Repair and Refresh services in the UK and the EU.
We offer ReBurberry aftercare services across the majority
ofourproduct categories. Our aftercare services comprise
Trench Refresh and Reproofing, Outerwear Reproofing, Apparel
Repair, Alterations, Scarf Refresh, Scarf Upcycle, Leather
Refresh, Leather Repair, Canvas Bag Cleaning, Shoe Repair,
Sneaker Refresh and Rewax and Jewellery Repair and Refresh.
For a breakdown of our ReBurberry aftercare services see the
Metrics section below.
Metrics
ReBurberry aftercare services
FY 2025/26 FY 2024/25 FY 2023/24
Number of stores offering one or more aftercare services 385 390 383
Number of countries and territories with stores offering one or more aftercare services 32 33 33
Number of stores offering Repair services 384 382 379
Number of stores offering Refresh services 320 339 312
Total number of products repaired using our aftercare offer 38,110 34,950 39,495
Total number of products refreshed using our aftercare offer 2,909 2,685 3,163
Breakdown of number of products repaired using our aftercare offer
Trench coats 7,993 8,278 9,525
Leather 7,098 7,876 9,127
Outerwear 6,901 6,434 4,550
Ready-to-wear 13,919 10,079 4,614
Scarves
1
359 345 N/A
Footwear
1
493 702 N/A
Other 1,347 1,236 10,997
1. Categories were included from FY 2024/25, therefore data for previous years is not available.
2. Packaging
Approach
Burberry is committed to the responsible sourcing of
materials,including those used across our packaging portfolio.
InFY 2025/26, we maintained our plastic-free consumer packaging
offering and continued to explore lower-impact alternatives
foroperational packaging and new packaging developments.
Across our total packaging portfolio, 85% of our packaging
ismade from paper and cardboard.
Our Preferred Packaging Materials List and Packaging Material
Impact Matrix inform all new packaging developments to ensure
associated environmental impacts are considered. These include
impacts on water and land use, recyclability, embodied carbon
and packaging weight. Additionally, adherence to our Preferred
Packaging Materials List promotes readiness for legislation, such
as Packaging and Packaging Waste Regulation (PPWR) and the
EU Deforestation Regulation (EUDR).
Policies
Our Global Environmental Policy provides detailed guidance
topackaging suppliers on sustainable manufacturing practices
regarding chemical and water usage, as well as nature protection
legislation, such as the EUDR. More details on our Global
Environmental Policy can be found on page 55.
In addition, our Responsible Raw Material Sourcing Policy
outlines our requirements for value chain partners and our
commitments to responsible raw materials sourcing, including
materials used in packaging. As the majority of our packaging
ispaper-based, this policy also sets out clear requirements for
the management and mitigation of deforestation risks. Where
packaging remains necessary, we maximise use of certified and
reusable or recyclable materials in line with circular economy
principles set out in our Responsible Raw Material Sourcing
Policy and our Preferred Packaging Materials List (available
onBurberryplc.com).
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Targets
In FY 2025/26, we refined our packaging targets to reflect our
learnings and progress since we established our plastic elimination
targets in FY 2022/23. From FY 2026/27, we will focus on
eliminating unnecessary single-use plastic and limiting remaining
use (6% of our portfolio) to essential applications only, where
noviable alternatives exist. This includes packaging which offers
essential protection from moisture and humidity damage, and
minimises breakages to fragile products. In these cases, we will
mandate the use of either reusable or certified recycled and
recyclable plastic.
From FY 2026/27, our updated packaging targets are:
1. eliminate unnecessary single-use plastic from our packaging
byFY 2029/30
1,2
; and
2. ensure use of preferred materials in our packaging
byFY2029/30.
Consumer packaging
Eliminate plastic from our consumer packaging
byFY 2025/26.
Operational packaging
Eliminate unnecessary plastics used in operational
packaging and maximise recycled content (with at least
50% of plastic to be made from fully recycled content)
byFY2029/30.
FY 2025/26 performance
Our consumer packaging offering has been plastic-free since
FY 2023/24. We maintained this position in FY 2025/26.
To track and monitor the origin of wood and paper used for
packaging, we aim to ensure that all our packaging is FSC
®
certified, a globally recognised standard for responsible forest
management, mitigating deforestation risks. In FY 2025/26, 100%
of our paper-based consumer packaging and 94% of our total
paper-based packaging portfolio was certified by the FSC
®
andwidely recyclable.
Beyond paper and wood, 89% of cotton used in consumer
packaging, including garment covers and dust bags, contained
aminimum of 50% recycled content.
For operational packaging, we continued to work on eliminating
unnecessary plastics, focusing on single use plastic as a
priority.Where plastic remains necessary, we have increased
thepercentage of recycled content used. In FY 2025/26, 90%
ofoperational packaging was made from fully recycled content
and 92% of plastic packaging was made from a minimum of 50%
recycled content.
Actions
1. Operational efficiency
Beyond the materials used in our packaging, we have prioritised
improving operational efficiencies to reduce our associated
environmental impact. For example, in FY 2025/26, we redesigned
the shipping boxes used for our larger leather products, replacing
conventional rectangular-shaped boxes with a wedge-shaped
boxfor select styles. This reduced the overall box size by 35%
and minimised the empty space within each box. This redesign
not only reduced the amount of packaging we use but also has
the additional benefits of lower associated carbon emissions
andreduced costs from shipping and storage.
2. Digitalisation of packaging
In FY 2025/26, we digitalised our physical care booklets,
previously printed and shipped with footwear, leather goods
andjewellery products. Global customers can now access care
information through our new FAQ-style Product Care page on
Burberry.com via a QR code printed on product labels. We estimate
this initiative will save 20 tonnes of printed paper annually.
Tominimise waste, existing printed booklet stocks are being
utilised across allcategories before a complete transition
toQRcodes.
1. Unnecessary single-use plastic packaging is defined as plastic packaging that can be avoided or replaced without impacting the functionality of protective packaging.
2. Necessary single-use plastic packaging is defined as single-use plastic packaging that cannot be avoided or replaced given its essential protective functionality. Protective qualities
ofnecessary single-use plastic include but is not limited to protection from moisture, humidity damage, breakages and scratches to Burberry products.
Metrics
Packaging
FY 2025/26 FY 2024/25 FY 2023/24
Percentage of plastic packaging made with a minimum of 50% recycled plastic 92% 87% 86%
Percentage of paper-based packaging procured that is FSC
®
certified 94% 98% 96%
Percentage of paper-based consumer packaging procured that is FSC
®
certified 100% 100% 100%
Note: in order to calculate the percentages of recycled content and FSC
®
-certified paper-based packaging, we have relied on the accuracy of information supplied to us by packaging
manufacturers directly managed and/or nominated by Burberry regarding the packaging sold to Burberry.
Figures are based on total volume (in weight) of in-scope packaging, where the packaging is made entirely, or at least more than 50% by weight, from plastic, cotton or paper materials.
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3. Waste management
Approach
We are committed to minimising resource use and reducing
waste across our operations and supply chain in line with the
EUWaste Framework Directive waste hierarchy. This gives priority
to waste prevention, followed by reuse, recycling, recovery and
finally disposal. Our preferred approach is to avoid waste before
it is created by designing and planning with circularity in mind.
Where waste still occurs, we aim to maximise the proportion sent
for reuse or recycling.
Waste hierarchy
In addition, we delivered training to over 430 colleagues
atourinternal manufacturing and distribution hub locations
onthe responsible management of waste and how they can
support adherence to the Burberry waste hierarchy.
Non-stock waste
We strive to make the most of the resources we use and find new,
creative solutions for utilising materials across our operations.
InFY 2025/26, the draping materials featured in our Burberry
Winter 2025 and Burberry Summer 2026 runway show sets
wererepurposed in our window displays in our Milan, London,
New York and Paris stores. Remaining draping materials were
transformed into tote bags used for client gifting. We also reused
279 kilograms of loom offcuts from Burberry Mill as a plastic-free
alternative to tinsel used in our festive window displays across 26
stores globally. In addition, to reduce the quantity of packaging
used on sets and within stores, we developed tote bags
manufactured from excess denim material to facilitate the
transportation of equipment.
While we promote internal reuse of our visual merchandising and
set builds across our store network and client events, we continue
to support local charities and organisations through donations
ofprops, furniture and materials. For example, in FY 2025/26,
500chairs from our Burberry Summer 2025 runway show and
121bench cushions from our Burberry Winter 2026 runway show
were donated toour longstanding partner, The BRIT School.
During the year, weestablished a new partnership with Last Yarn,
a London-based social marketplace facilitating fabric donations
to creatives, designers and students. In FY 2025/26, we donated
5,710 kilograms of fabric and 705 kilograms of yarns to the
initiative. Through Last Yarn, we also launched an internal
quarterly collection of redundant swatch samples from our Fabric
Development teams to donate toLondon-based design students
to support the development oftheir university material portfolios.
In FY 2025/26, our renovated London headquarters, Horseferry
House received aBREEAM ‘Excellent’ environmental rating (see
page 56 for moredetails on BREEAM).
Manufacturing waste
In FY 2025/26, we progressed our waste management
programme focusing on key priority areas.
• Reduction: our priority is to prevent and minimise waste
inmanufacturing, including production losses, offcuts and
defective material, by enhancing material utilisation efficiency.
In FY 2025/26, we launched Efficiency Hubs, which are
cross-functional working groups focused on specific product
categories. These hubs are designed to test and scale practical
solutions that address waste at its source by introducing new,
more efficient ways of working and removing operational
barriers to waste reduction
1. Operational waste consists of dry mixed recycling (cardboard, plastic and paper), confidential paper, general waste, organic waste, glass, wood and metal leftover materials.
Policies
Our Global Environmental Policy sets out our commitment
tomanaging resources to prevent and minimise waste, as well
asthe responsible disposal of any waste generated across our
ownoperations and supply chain in line with the waste hierarchy.
Burberry’s Sustainability Committee, chaired by the CEO,
oversees overallpolicy adherence. The policy is made available
toBurberryemployees, contractors and Business Associates on
Burberryplc.com and is included in relevant onboarding procedures.
More details of our Global Environmental Policy can be found
onpage 55.
Actions
Operational waste
To minimise and reduce waste across our own operations,
inFY 2025/26, we diverted 100% of operational waste
1
from landfill
with an average recycling rate of 76% in our own operations
(compared to 75% in FY 2024/25). We continue to implement
waste segregation within our own operations, minimising
contamination within the waste streams and maximising the
volume that can be reused or recycled in line with the Burberry
waste hierarchy.
Most
preferred
Least
preferred
Prevent and Reduce
Reuse
Recycle
Recovery
Disposal
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Metrics
Operational waste
FY 2025/26 FY 2024/25 FY 2023/24
Percentage of operational waste diverted from landfill 100% 100% 100%
Percentage of average recycling rate in our own operations 76% 75% 74%
Note: data based on calendar year (1 January – 31 December). The scope of this metric covers key UK and Italy operations, comprising Burberry’s internal manufacturing facilities and
distribution centre in Northern England, Burberry’s London headquarters, Burberry’s office in Leeds, retail stores in the UK, Burberry’s manufacturing site and distribution centres in Italy,
aswell as Burberry’s distribution centres in Vineland and Shanghai.
Manufacturing textile waste
FY 2025/26 FY 2024/25
Total textile waste
1
(tonnes) 790 761
Waste diverted from disposal (tonnes)
2
691 N/A
Reuse and Recycle (tonnes) 243 359
Other recovery (tonnes)
2
448 N/A
Waste directed to disposal
2
99 N/A
Note: the scope of the metric includes primary data collected from direct Tier 1 supply chain partners only, representing 92% of products delivered.
1. Textile waste refers to production-related textile and leather waste.
2. Waste diverted from disposal in FY 2024/25 included reuse and recycling only. From FY 2025/26, reporting has been expanded to include other recovery routes and disposal.
• Revaluing: when waste cannot be prevented, we look for
opportunities across our supply chain to repurpose it in line
with Burberry’s waste hierarchy, ensuring materials retain the
highest possible value. We continue to work closely with our
Innovation team to identify, adopt and scale textile-to-textile
recycling solutions. As part of our Spring 2026 collection, we
introduced a jacket made using 100% recycled Burberry nylon
production offcuts as its main raw material. This closed-loop
textile-to-textile recycling process transformed Burberry’s own
manufacturing waste into new materials, strengthening our
commitment to circular design
• Mindset shift: we aim to drive a zero-waste culture among
internal and external stakeholders by raising awareness
ofwaste’s impact and its connection to other resources.
Inorder to progress on our priorities to reduce and revalue
waste, wedeliver training programmes for our supply chain
partners and internal teams
Finished goods
At Burberry, we design with circularity and longevity in mind,
making high-quality luxury products made to last. From the way
we design and source materials to the aftercare services we
offer, we embed circular principles to extend our products’ life
cycle. In accordance with Burberry’s waste hierarchy, we prioritise
the prevention of waste generation at source. Weactively minimise
waste in the manufacturing process through our WasteManagement
Programme with supply chain partners andby prioritising
materialutilisation.
We also continue to develop operational solutions to prevent
andreduce excess inventory, including optimising our planning
and forecasting processes through a data-driven approach.
Thisenables us to streamline planning, improve our forecasting
accuracy and our responsiveness to in-season adjustments.
Optimising stock utilisation allows us to operate with greater
precision and advance towards a more responsible and
resource-efficient supply chain. This includes leveraging our
outlet network and employee sales. We continue to explore
opportunities to expand our circular business models as an
additional avenue for our products to reach our customers and
tohelp them enjoy their products for longer (see page 72 for
further information on our ReBurberry Services). We also donate
suitable items through creative partnerships and educational
institutions or charities where possible. Finally, we recycle,
whileactively diverting waste from incineration and landfill.
InFY 2025/26, we donated approximately 1,000 items to our
longstanding UK charity partner, Smart Works. Smart Works help
women transition into employment by providing high-quality
interview clothes and interview training.
In certain cases, the continued circulation of products is
notpossible due to age or unavoidable damage. Our approach
toresponsible management of unsaleable products is led by
ourGlobal Environmental Policy, which prohibits the destruction
ofunsaleable products globally, specifically by means
ofincineration (with or without energy recovery) or landfill.
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Strategic Report | Sustainability at Burberry
SOCIAL
DISCLOSURES
Our people, both direct colleagues and those in our supply chain, are crucial to our
business and operations. We respect and uphold human rights wherever we operate
andwe work to enhance our people’s wellbeing through targeted initiatives.
This section highlights our commitment to creating an environment for our people
thatnot only safeguards their health and human rights, but also enables us to make
apositive impact on society.
OUR WORKFORCE
Introduction
Our purpose, To Embrace the Elements with Open Arms, is
brought to life through our values of Protect, Explore and Inspire,
which define the behaviours that matter most at Burberry.
Thesevalues shape how colleagues collaborate, how leaders
setdirection andhow the business balances creativity with
responsibility, performance with wellbeing, and ambition with
respect for peopleand craft.
Our values help to create an environment where belonging and
high performance go hand in hand. Colleagues are encouraged
toshare diverse perspectives, challenge constructively and keep
learning in an environment where they feel supported. Through
investment in leadership, wellbeing and inclusive ways of
working, Burberry aims to help every colleague succeed.
Together, our purpose and values provide a shared foundation
that connects colleagues across the organisation, strengthens
accountability and supports sustainable performance for
thelongterm.
Approach
Our approach to our people is defined by our Burberry Forward
strategy and our objectives to organise for growth, strengthen
ourleadership and ensure that talent is at the centre of everything
we do. We empower colleagues to seek opportunity in everyday
challenges and feel connected to our business and each other.
Finer details: Heritage Trench Coats are crafted in Yorkshire and hand-finished by specialist tailors.
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Strategic Report | Sustainability at Burberry
Diversity, equity and inclusion are deeply embedded in our
waysof working at Burberry and we are strengthening a culture
ofbelonging across the business. We have established strong
foundations through policies, programmes and representation,
and continue to support behaviours that mirror who we are as
aCompany. As part of our transformation, we are reigniting
ahigh-performance culture centred on belonging and grounded
in our reimagined purpose and values. Our purpose, To Embrace
the Elements with Open Arms, provides a shared foundation
thatkeeps us connected asone Burberry community while
encouraging diversity to thrive. Ourvalues ensure we recognise
achievements, support collaboration and engage diverse
perspectives, so that our people feel valued and part of Burberry.
We believe that everyone at Burberry is responsible for bringing
our purpose and values to life.
Policies
Our people-focused policies and procedures are aligned to
ourcommitment to support colleagues throughout their career
atBurberry.
Our Code of Conduct, available on Burberryplc.com, sets out
thebehaviours expected of our people and Business Associates.
Created to enable our people to make informed, ethical and
sustainable decisions, it outlines the key policies, processes and
ways of working that must be adhered to while following all local
laws and regulations.
Included within the Code:
• Our Burberry Confidential Policy is in place to ensure both
colleagues and external parties can speak up about serious
concerns. Available in countries and territories where we are
present and where it is legally permitted, Burberry Confidential
is a global helpline available 24/7 online as well as via telephone
• Our Global Diversity, Equity and Inclusion Policy defines
clearexpectations, including shared responsibility and
formalresolution mechanisms, to underpin an inclusive
andequitableworkplace
• Our Global Parental Leave Policy offers 18 weeks’ paid leave
forall employees with six months or more of continuous service,
regardless of their gender. Similarly, our Bereavement Leave
Policy supports bereaved parents, including foster, adoptive and
intended parents, for both pregnancy loss and the loss of a child
We make reasonable adjustments for people with disabilities
(including any colleagues who become disabled during their
career at Burberry) and ensure our online materials, policies
andprocesses are inclusive of people with both visible and
non-visible disabilities.
Actions
1. Embedding our culture of belonging
In line with our aim to Reignite a High-performance Culture, we
are working to ensure our people feel connected to our purpose,
confident in their contribution to the business and clear on their
role in shaping Burberry’s future. We are doing this through our
Belonging strategy, which forms part of our evolving approach
todiversity, equity and inclusion. In March 2026, we launched
acampaign asking colleagues to help us define what belonging
means at Burberry in order to create a simple definition.
InFY 2026/27, we will embed these learnings across the business,
including in Human Resources processes from talent acquisition
and development to engagement and performance.
In FY 2026/27, we will launch an internal Council with the aim
ofturning insights into action and strengthening the connection
between colleagues and our culture, including our approach
towellbeing and performance. We are also taking belonging into
account when considering the strategy, structure and governance
required to guide decisions on partnerships and how we participate
in key cultural moments. This includes a review of the purpose,
structure and impact of our Employee Resource Groups (ERGs)
toensure they operate as effective insight, connection and cultural
feedback mechanisms that complement Employee Engagement
Survey data and leadership listening.
The upcoming relaunch of the Icon Awards, our flagship
recognition programme, will reinforce belonging as a driver
ofhigh performance. A peer-led, globally accessible celebration,
the event highlights colleagues who have demonstrated high
performance and modelled our purpose and values. The refreshed
approach will focus on clear behavioural criteria and inclusive
participation, helping to make cultural expectations visible and
valued across the organisation.
In parallel, we continue to advance our diversity, equity andinclusion
initiatives through external benchmarking, suchasthe FTSE
Women Leaders Review, and by embedding therecommendations
from our participation in the Investing inEthnicity Maturity Matrix
and the Stonewall Global Workplace Equity Index during the year.
In addition, our voluntary disclosure of ethnicity data in our
annualgender pay gap reporting builds onour commitment
totransparency and greater data disclosureand governance.
By partnering with organisations such as the Business
DisabilityForum, we are able to identify gaps in our diversity
andinclusionefforts. In addition, we can access expert guidance
andimplementpractical actions that strengthen accessibility,
developinclusive leadership behaviours and improve support
forpeoplewith disabilities so all our people can feel a sense
ofbelongingatBurberry.
2. Growing our talent pipelines
Building on progress in diversifying the talent pipeline, we are
strengthening our approach to ensure the fair and consistent
hiring of the best talent, supported by accessible systems
andprocesses. We continue to review our recruitment process
toensure it is fair and impartial. In addition to tools like gender
decoders, data monitoring and standardised interview forms,
wealso continue to deliver Interviewing with Impact, a programme
that supports hiring managers with best practice interviewing
anddecision-making.
Our established partnerships remain central to our talent
strategy. The Outsiders Perspective continues to deliver targeted
pipelines for experienced people of colour into Burberry, while
the ambition for our Principal Sponsorship of The BRIT School
Fashion, Styling and Textiles course is to evolve it from a
high-performing education partnership into a structured early
talent pipeline for the business.
To support fair and objective performance management, we
provide training and guidance for line managers, which places
anemphasis on evaluating colleagues based on clear objectives,
skills, capabilities and demonstrated performance.
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Metrics
Our workforce
FY 2025/26 FY 2024/25 FY 2023/24
Total employee headcount in direct operations 7,299^ 8,459 9,336
Percentage of employee headcount by significant operating location
EMEIA 50%^ 51% 51%
Americas 14%^ 14% 14%
Asia Pacific 15%^ 35% 35%
Greater China
1
21%^
Percentage of employee headcount by business function
Consumer 13% 13% 14%
Design 1% 1% 1%
Enabling
2
14% 14% 14%
Retail 57% 55% 55%
Supply Chain 15% 17% 17%
Percentage of employee headcount in each age category
Under 30 19% 21% 25%
30-50 68% 65% 63%
50+ 13% 14% 13%
Employee engagement score
3
72 points
4
69 points 74 points
Note: data as of 31 March 2026.
1. Operational location is based on colleague employment location. From FY 2025/26, Asia Pacific is reported as two distinct regions, Greater China and Asia Pacific, to reflect changes
ininternal reporting and organisational structure. In previous financial years, both regions were reported together under Asia Pacific. Therefore, FY 2025/26 figures are not directly
comparable with previous reporting periods.
2. Function that provides essential support services/activities that keep Burberry’s core business running smoothly and efficiently, including Finance, Human Resources, Information
Technology, Legal, Strategy and Property and Facilities Management.
3. Our engagement score is derived from colleague listening surveys conducted via the Microsoft Viva Glint platform and reflects the average of voluntary responses. During FY 2025/26,
the engagement measure was refined to be based on a single employee satisfaction question, replacing the previous two-question approach, to ensure consistent measurement across
all experience surveys.
4. Our FY 2025/26 annual Employee Engagement Survey, conducted in October 2025, indicated an increase in engagement compared with the prior year. Continued listening suggests
this uplift was supported by confidence in Burberry’s leadership and strategic direction, reflected in clearer decision-making and stronger leadership role modelling.
^ This metric was subject to external independent limited assurance by Ernst & Young LLP (EY). For the results of that assurance, see EY’s Independent Limited Assurance Report
andBurberry’s Sustainability Basis of Reporting FY 2025/26 on Burberryplc.com.
More information on our methodology can be found in our Sustainability Basis of Reporting FY 2025/26 on Burberryplc.com.
3. Careers and growth
We strengthened our approach to careers and growth through
thecreation of a dedicated Career Development role focused
onimproving career clarity, building career confidence and
reinforcing an internal talent first mindset. Career clarity hasbeen
enhanced through greater visibility ofinternal career pathways
and roles, supported by initiatives such as Inside Our Teams and
Career Colleague Spotlights, withresources available via our
intranet to explain our teams’ responsibilities and highlight live
vacancies. Career confidence issupported through practical
toolsand resources that enable colleagues to take a more active
role in shaping their development.
To support internal mobility, many vacancies are advertised
internally for a minimum of five days, with more roles promoted
internally than externally. We offer career coaching to support our
internal talent, while our career resources have been consolidated
within a Careers & Growth Hub to improve accessibility and
usability. Capability-building is further reinforced through structured
development for managers and leaders. In FY 2026/27, we will
continue to focus on strengthening meaningful career conversations
and building the skills required to deliver Burberry Forward.
4. Our commitment to fair and equitable pay practices
At Burberry, we are committed to paying our colleagues equally
for work of equal value and to providing all colleagues across the
organisation with competitive total reward. As part of our reward
reviews, we regularly undertake pay analysis to ensure we meet
our commitment to pay all colleagues in line with their level and
experience and at a competitive and fair market rate.
In line with regulations, we have reported gender pay gap figures
annually for our UK employee population since 2017. For FY 2025/26,
we also voluntarily reported ethnicity pay gap figures for the fifth
consecutive year, reflecting our commitment to transparency and
to creating lasting change by continually monitoring our progress.
The gender and ethnicity pay gaps are distinct from equal pay,
which is a comparison of the pay for men and women carrying out
the same or equivalent roles. For FY 2025/26, we reported a median
gender pay gap of 15.5%, a mean gender pay gap of 20.2%, a median
ethnicity pay gap of 0.1% and a mean ethnicity pay gap of 15.7%.
We will focus our efforts on creating opportunities for development
as well as monitoring our progress with the support of industry
reports and benchmarks. This includes the FTSE Women Leaders
Review, which recognised Burberry for the eighth consecutive
year as a top performer for women in leadership, and the Investing
in Ethnicity Maturity Matrix, for which we were rated a Level 3
Advanced Employer and recognised as a Top 30 Employer for our
commitment to creating a more inclusive and equitable workplace.
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Our workforce by gender
FY 2025/26 FY 2024/25 FY 2023/24
All workforce 7,299^ 8.459 9,336
Female 67%^ 67% 67%
Male 33%^ 33% 33%
Junior managers 968 1,058 1,142
Female 64% 63% 65%
Male 36% 37% 35%
Senior managers 383 414 452
Female 56% 56% 57%
Male 44% 44% 43%
Leadership (Director and above)
1
253 293 331
Female 60% 58% 57%
Male 40% 42% 43%
Executive Committee 13 9 11
Female 46% 33% 27%
Male 54% 67% 73%
Note: data as of 31 March 2026.
1. Senior managers as defined in the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013.
^ This metric was subject to external independent limited assurance by Ernst & Young LLP (EY). For the results of that assurance, see EY’s Independent Limited Assurance Report
andBurberry’s Sustainability Basis of Reporting FY 2025/26 on Burberryplc.com.
More information on our methodology can be found in our Sustainability Basis of Reporting FY 2025/26 on Burberryplc.com.
Supporting belonging
FY 2025/26 FY 2024/25 FY 2023/24
Percentage of employees completing our online diversity, equityandinclusionlearning journey
Diversity, Equity and Inclusion (DEI) Module 99% 86% 89%
Increasing representation
FY 2025/26 FY 2024/25 FY 2023/24
Shortlists across recruitment campaigns
2
Female 58% 59% 57%
Male 41% 39% 41%
Other 1% 2% 2%
2. These values are based on candidates who choose to voluntarily disclose.
OCCUPATIONAL HEALTH AND SAFETY
Introduction
Our operations and facilities span retail sites, corporate offices
and supply chain facilities.
Physical and process-related hazards in certain working
environments could have negative impacts on our colleagues’
health and wellbeing. To foster a safer working environment
thatpositively impacts our people, we have put in place a global
Health and Safety Management System to identify hazards,
control risks and train colleagues. We are committed to empowering
ourpeople to support their own health, safety and wellbeing,
while also managing impacts that occur across our operations.
This section outlines the work undertaken to minimise negative
impacts relating to health and safety across our global operations.
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Approach
We embed health and safety considerations into all global activities,
setting out our commitments and continuous improvement
targets within our Global Health and Safety Policy.
Following a Plan/Do/Check/Act approach, we implement risk
reduction plans using our hierarchy of controls. These are
supported by employee training, procedure updates, equipment
or process changes and emergency preparedness. Using incident
data, audits, inspections and safety metrics, we regularly monitor
and review health and safety performance to ensure measures
remain effective and aligned with our policies, objectives and
goals. Based on these reviews, we take proactive action to address
non compliance, correct unsafe conditions, improve procedures
and investigate incidents through a root cause analysis process.
Burberry’s Health and Safety strategy is shaped by the Director
ofHealth and Safety, who provides strategic direction and
issupported by a global team responsible for translating
governance expectations into operational practice. Strategy
anddecision-making are informed by annual goal-setting aligned
with industry best practice, ongoing performance analysis and
risk-based prioritisation across the global footprint. Impact and
risk are managed through a comprehensive Health and Safety
Management System, which includes policy reviews, training,
riskassessments, operational standards, wellbeing support,
fireand event safety arrangements, and continuous
improvementmechanisms.
The implementation of our health and safety standards is
monitored through a structured assurance and reporting system.
The global Health and Safety team leads the Global Assurance
Audit Programme (GAAP), a proactive audit initiative designed
toensure that all our Burberry-managed locations can demonstrate
the effective management of health and safety and to help ensure
compliance with all relevant policies, including both internal
procedures and local regulatory requirements. Unannounced
global audits are carried out at a defined frequency, with findings,
risk reduction actions and performance metrics reported through
regional committees to the Global Health and Safety Committee
and Board-level oversight committees. These audits are
complemented by incident reporting through systems ensuring
transparent tracking of serious incidents, near misses and
corrective actions.
Operational ownership for this area sits with the Global Health
and Safety Committee (GHSC), chaired by the General Counsel.
This Committee, which meets twice a year, is responsible for
reviewing the global policy framework, monitoring implementation
and ensuring alignment with Burberry’s regulatory obligations
andinternal standards. Supporting the GHSC are regional and
local Global Health and Safety Committees operating across
thebusiness which enable location-specific risk decisions
andescalation pathways to senior management.
If any health and safety risks are identified, the GHSC will raise
them to the Risk Committee which ultimately reports into the
Audit Committee. The Audit Committee monitors policies and
processes for identifying, assessing and managing business
risks, including health and safety, and receives regular reporting
on performance and emerging risks. (For more details of our
Corporate Governance structure, see page 121). The Board
isultimately accountable for the implementation of good health
and safety practice across the business.
Policies
Our Global Health and Safety Policy underpins our commitment
tomaintaining the highest achievable standards of health, safety
and wellbeing across our global operations by providing a unified
framework that guides how risks are identified, managed and
continually improved upon.
The policy mitigates risk and impacts by setting mandatory
standards for hazard identification, risk assessment, incident
reporting and investigation. It also outlines fire safety and
emergency procedures, defines wellbeing support and specifies
training and competency expectations for all colleagues and
contractors. This policy reinforces our commitment to a safe
working environment and outlines clear governance structures
and responsibilities. Implementation and monitoring are supported
by the GAAP to proactively check compliance and risk control
effectiveness across all global locations.
The policy applies to all colleagues, contractors, suppliers and
anyone working in or visiting Burberry-managed sites worldwide,
ensuring comprehensive coverage across our global operations.
The policy is publicly available on Burberryplc.com and internally
via Burberry World, our colleague intranet, where it has been
translated to 12 languages. In addition, the policy has been made
available and displayed in locations accessible to employees.
The policy is approved by the CEO on behalf of the Board,
whichholds ultimate oversight and monitors the implementation
of health and safety practices across the organisation.
Targets
In FY 2025/26, we set our internal health and safety targets
basedon our incident reporting, audit results and trend analyses
from previous financial years, as well as consultation with
regional health and safety managers and third-party specialists.
Aimed at continually improving our performance year on year,
wefocused on addressing site reporting participation, reducing
serious accidents, increasing near-miss reporting and
improvingauditscores.
Actions
1. Continuous improvement
Global Health and Safety team
Our global Health and Safety team provides expert guidance,
governance and assurance across all regions to support our
commitment to protecting people, property and brand reputation.
The team is responsible for developing, maintaining and continually
improving the global Health and Safety Management System,
including analysing leading and lagging performance indicators.
Working in partnership with key functions, the team ensures that
health and safety standards are consistently embedded across
global operations. Regional Health and Safety Champions
furthersupport this by serving as visible operational leads
andrepresenting colleague safety within local committees
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Metrics
Health and safety data
FY 2025/26
Rate of employee serious work-related accidents per 100,000 employees 26.4
Number of employee work-related serious accidents 24
Rate of employee time loss from work-related serious accidents per 100,000 employees 23
Note: data is based on self-reported accidents on our global reporting system. For FY 2025/26, data represents 84% of global employee headcount. Calculation is not based on pro-rated data.
Health and wellbeing
Our Health and Wellbeing strategy focuses on supporting
colleagues’ mental, physical and financial wellbeing through
targeted global initiatives. In FY 2025/26, the mental health
ofourcolleagues remained a key priority with the continued
delivery of support sessions and mental health awareness
training. Beyond our colleagues, the Global Health and Safety
team also carried out model wellbeing surveys. Models engaged
by Burberry were encouraged to provide anonymous feedback
regarding their experience of working with the brand from
ahealth and safety perspective. Over two runway shows,
oursurveys, which included questions ontopics such as access
to healthy food and refreshments andbeing treated with respect
and professionalism, received an87%positive response rate.
2. Training, governance and communications
Burberry’s global health and safety training programme ensures
that colleagues across all regions received relevant, engaging
and legally compliant learning. In FY 2025/26, Health and Safety
Essentials remained a core mandatory training module, achieving
a 99% completion rate. Across FY 2025/26, our global Health and
Safety team also delivered a range of tailored classroom-based
courses and other role-specific qualifications to meet operational
needs. This hybrid training approach, combining mandatory
digital learning, targeted regional sessions and recognised
accredited programmes, supports colleagues in managing their
own health, safety and wellbeing while raising standards and
reducing incidents across global operations.
3. GAAP
The GAAP delivers a continuous schedule of unannounced audits
across all business areas to ensure consistent compliance and
high safety standards. The programme maintained its
commitment to continuous improvement through updated audit
protocols, quarterly review cycles and focused action on repeat
audit findings and fire safety risks. In FY 2025/26, 103 audits were
carried out globally.
4. Targeted risk reduction
Fire safety and emergency planning
The global Health and Safety team remains focused on supporting
all locations with the implementation and maintenance of the
highest fire safety standards. We regularly connect with external
specialist support, internal stakeholders and project teams to
provide technical advice and fire prevention guidance. We ensure
our strategic fire safety commitments are kept under continuous
review across all our global operations.
5. Evolving the organisation
Global supply chain
Ensuring best-in-class health and safety standards across our
global supply chain operations remains a key priority area for the
Health and Safety and site leadership teams. While we continue
to adapt to organisational change and supporting Burberry
Forward, in FY 2025/26 we aligned our strategic approach to
setclearer, smarter targets, removed silos and improved overall
compliance. We also set and maintained consistent health and
safety standards across our global supply chain sites. We have
expanded and formalised Health and Safety Committees across
all locations and enhanced our general and task-based risk
assessment process. We also completed annual health
surveillance for specific workplace hazards, confirming effective
control measures to support health and wellbeing, and continued
to provide support for construction and improvement projects.
Events, campaigns and brand moments
The Health and Safety team plays a critical role in ensuring the
safe delivery of events, campaigns and brand moments across
the business. By collaborating closely with internal colleagues
and external specialist event partners, the team consistently
supports creative objectives while maintaining robust safety
standards for global brand activations, including runway shows
and high-profile marketing experiences. The team’s involvement
extends from early planning through to onsite assurance,
providing event safety oversight, risk assessments, technical
guidance and presence at key moments to safeguard attendees,
colleagues and brand reputation.
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Strategic Report | Sustainability at Burberry
PEOPLE IN OUR SUPPLY CHAIN
Introduction
With a value chain that operates across the world, our activities
impact the lives of the workers who help craft and manufacture
our products. As a Company, we respect and uphold human rights
and address impacts relating to working conditions and the unfair
treatment of workers while mitigating risks of modern slavery and
labour law violations. This agenda is deeply embedded in how we
operate and is reflected in the management of our relationships
with our supply chain partners.
Our commitment to supporting our people and their wellbeing
extends to those across our value chain. We collaborate with
supply chain partners and external experts across our sector
todrive positive, long-term outcomes for supply chain workers
through strengthening compliance standards and promoting
equal treatment and opportunities, as well as capacity
buildingprogrammes.
This section covers our approach to managing the impacts
andrisks relating to people in our supply chain. It also outlines
theactions we have undertaken with our supply chain partners
todrive meaningful change across our value chain.
Approach
Overall governance and oversight of our human rights work,
across our supply chain and direct operations, sits with our Ethics
Committee, which is chaired by the General Counsel and meets
three times per year.
If any labour or human rights risks are identified, these will be
escalated in line with internal governance processes, including
reporting to the Vice President of Corporate Responsibility
and,where appropriate, to the Ethics Committee. The Ethics
Committee reports to the Audit Committee, which is chaired
byanindependent Non-Executive Director (see page 121 for
details of our Corporate Governance structure).
To identify our most material human rights impacts, risks and
opportunities, we conduct a Human Rights Impact Assessment
(HRIA) of our operational activities and those of our extended
supply chain every two years. We have implemented this process
since 2014 and continue to evolve our approach through our
Ethical Trading Programme and our broader human rights due
diligence framework (see our Modern Slavery and Transparency
in the Supply Chain Statement FY 2025/26 on Burberryplc.com
for more details).
Our most recent bi-annual HRIA took place at the end of
FY 2024/25 and was conducted with the support of external
experts. Our methodology involves a comprehensive review
ofour global supply chain, including the identification and
mapping of human rights risks and potential impacts. The process
is informed by Organisation for Economic Co-operation and
Development (OECD) guidelines, specifically the OECD Due
Diligence Guidance for Responsible Business Conduct. It is also
supported by desk-top research and on-site assessments, as well
as engagement with external stakeholders, such as workers, local
communities, supply chain partners and NGOs. In addition to our
standard assessment, we undertook supplementary analyses
tobetter understand how the human rights of vulnerable groups
working within our supply chain may be impacted, including
afocus on gender and on countries with a higher prevalence
ofmigrant workers.
The assessment identified the following salient human rights
risksacross our supply chain:
• Working hours and wages
• Worker voice and access to grievance mechanisms
• Harassment and discrimination, particularly affecting women
and migrant workers
• Modern slavery and forced labour risks linked to
recruitmentpractices
• Worker health and access to health services
The assessment also identified areas where there is a heightened
risk of modern slavery occurring, including within deeper tiers
ofour extended supply chain, specific countries and regions with
higher levels of risk related to labour rights and migrant workers,
as well as specific goods or service industries, such as logistics,
cleaning and employment agencies.
During FY 2025/26, we implemented a range of mitigation actions
focused on these risk areas (as detailed on pages 83 to 85).
Policies
Our Code of Conduct guides our actions and supports our
partners to make informed, ethical and sustainable decisions
andhas been developed in line with our commitments and
experience over many years. The Code includes our Ethical
Trading Code of Conduct and Human Rights Policy, which sets
out standards to protect the rights of workers across our supply
chain, as well as policies that aim to protect vulnerable workers,
such as a supply chain Migrant Worker Policy and a Child
Labourand Young Worker Policy. Our policies within the Code
ofConduct are underpinned by the UN Guiding Principles on
Business and Human Rights, the Ethical Trading Initiative Base
Code, the International Bill of Human Rights and the Fundamental
Convention of the International Labour Organization.
Policies relating to modern slavery and human rights are reviewed
annually by our Corporate Responsibility team to ensure they
aremeeting the latest best practice guidelines and emerging
regulatory requirements. This is carried out in conjunction
withrelevant internal departments, such as Human Resources,
and are approved by our Ethics Committee.
We seek to apply the Code of Conduct to all our Business
Associates, which include, but are not limited to, raw material
suppliers, finished goods suppliers, subcontractors, supporting
facilities, non-stock suppliers, construction contractors,
licenseesand franchisees. Compliance with the Code of
Conductis a condition of working with Burberry (whether directly
or indirectly).All applicable policies are made publicly available
on Burberryplc.com and shared with new Business Associates
during onboarding. They are available to colleagues via Burberry
World, our internal colleague intranet.
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Targets
In FY 2025/26, we developed new goals to better demonstrate
the impact of our programmes. These targets focus on improving
worker engagement, strengthening supplier capacity and
elevating compliance standards across our supply chain.
Elevate compliance standards
Enhance worker-related rights and elevate compliance
standards across our value chain through our audit
programme and due diligence framework.
FY 2025/26 performance
During the financial year, 436^ on-site social compliance audits
were carried out across our Tier 1 and 2 supply chain. Among
ourTier 1 supply chain partners, 69% were either audited or
remained in scope of their most recent audit, compared to 75%
inFY 2024/25. In addition, 15% of supply chain partners that had
anaudit in FY 2025/26 improved their ethical trading performance
compared to their previous grading. We also further expanded
therollout of our online mandatory modern slavery training
programme. This training aims to support internal teams in making
responsible sourcing decisions that assist in managing human
rights-related risks across our supply chain. In FY 2025/26,
weachieved a 94% completion rate.
Collaborate with supply chain partners
Engage our supply chain partners in capacity-building
programmes to strengthen their risk management
capabilities and improve working conditions throughout
their supply chains.
FY 2025/26 performance
In FY 2025/26, we continued to make significant progress
inengaging our supply chain partners in capacity-building
programmes to strengthen their own risk management capabilities,
including delivering our Vendor Ownership Programme (VOP),
which is in place at 28 partners globally. In addition, our Migrant
Worker Responsible Recruitment and Employment (R&E)
programme, in collaboration with the International Organization
for Migration (IOM), was established as a fully operational
programme in FY 2025/26 and involves 25 partners across
threekey countries within our EMEIA supply chain. As part of our
commitment to raising awareness of modern slavery risks across
our supply chain, we partnered with a digital training provider
inFY 2025/26 to enable us to make our Modern Slavery training
more widely available. During the financial year, 138 supply
chainpartners had completed the training.
Empower supply chain workers
Promote equal treatment and opportunities for supply chain
workers through programmes that support wellbeing,
livelihoods, inclusivity and worker voice.
FY 2025/26 performance
We continued to strengthen our Worker Wellbeing Programme,
which aims to enhance employee satisfaction and create
opportunities for meaningful dialogue between management and
workers. This programme is in place at 10 supply chain partners
across four countries. We also continued to improve access
toand raise awareness of Burberry-sponsored confidential
hotlines across our global supply chain and direct operations.
Theseservices are now available to 100% of Tier 1 global
supplychain workers.
Actions
1. Working conditions
Ethical trading programme
Our Human Rights Due Diligence strategy ensures we adopt
arisk-driven avoidance, assessment, mitigation, remediation
andprevention approach across our supply chain. This strategy
supports compliance with upcoming human rights regulations
andaims to embed a proactive, pragmatic culture that protects
Burberry’s values, strengthens stakeholder trust and enables
sustainable growth. In line with that, during the financial year,
wecontinued to implement robust auditing and compliance
programmes to effectively identify, manage and mitigate
potentialviolations of our Code of Conduct.
Audit activities this year were prioritised using a risk-based
approach, focusing on facilities where labour rights issues
aremore likely to occur and where our engagement can deliver
meaningful outcomes. This approach included targeted audits
ofraw material suppliers to further strengthen our understanding
of Tier 2 supply chain risks. Partners that were identified as
higher-risk received enhanced engagement and follow-up from
our teams. Audit planning across the remainder of the supply
chain continued to be informed by risk assessments, supply chain
and operational factors as well as previous audit performance.
In FY 2025/26, 69% of our Tier 1 suppliers were either audited
orremained in scope of their most recent audit. Less than
3%ofsupply chain partners were identified as having Critical
orBusiness Critical findings and were managed in line with
ourCritical procedure. This requires a formal commitment and
corrective action plan within 15 working days, followed by either
announced or unannounced audits to ensure sufficient progress
is shown before continuing the partnership. Where a partner
isunable to remediate identified issues and meet agreed
improvement deadlines with our support, we may consider
responsible disengagement as a last resort. We analyse all our
audit findings on a global scale to understand where to focus our
remediation and social impact programmes. During the financial
year, the main areas of non-conformance with our standards
across all audits conducted were related to health and safety
andconcerns relating to working hours, such as excessive
overtime. We will continue to work with our partners to identify
the rootcause of these issues and implement actions to address
andprevent them. Where there is non-compliance, we require
oursupply chain partners to implement a corrective action plan
tomake progress and meet all our ethical trading standards.
Moreinformation on our Ethical Trading Programme can be found
in our Modern Slavery and Transparency in the Supply Chain
Statement FY 2025/26 on Burberryplc.com.
^ This metric was subject to external independent limited assurance by Ernst & Young LLP (EY). For the results of that assurance, see EY’s Independent Limited Assurance Report
andBurberry’s Sustainability Basis of Reporting FY 2025/26 on Burberryplc.com.
Burberry Annual Report 2025/26 83

Strategic Report | Sustainability at Burberry
One area of continued focus for risk mitigation in FY 2025/26
wasthe potential risks associated with migrant workers and
implementing a reinforced due diligence approach to assess,
remediate and prevent instances of actual or potential negative
impacts on these workers. Our approach includes:
• An extensive assessment (conducted on an unannounced
basis) of the supply chain partner’s operating procedures,
spanning workers rights, employment practices, fiscal due
diligence and electrical consumption analysis
• Out-of-hours site visits are conducted with the support
ofthird-party consultants
• Action plans tailored to each supply chain partner to support
their capacity to address and prevent negative impacts
• An internal due diligence review of Burberry’s purchasing
practices, to identify any connections between our sourcing
policies and any non-conformities identified through our
auditprogramme
All partners issued with action plans and openly working
onremediating impacts observed are regularly reassessed
tovalidate improvements.
Vendor Ownership Programme
Our Vendor Ownership Programme (VOP) is a core element
ofhow we manage risk in our supply chain. The VOP provides
ourkey
1
supply chain partners with support to develop and run
theirown due diligence programme within their extended supply
chains in line with our standards. TheVOP supports our efforts
touphold our ethical standards andactively works to prevent
modern slavery risks through our partners’ continued engagement,
along with extensive support and training. Regular audits focused
on human rights as well as health and safety are conducted
byourVOP partners and, in certain cases, third-party auditors,
using our Ethical Trading Codeof Conduct as a guide. Based on
the results of the audit, improvement action plans are developed
andshared with our partners’ supply chain, who in turn bridge
thegaps identified.
In FY 2025/26, we delivered a range of training and awareness
initiatives to strengthen partners’ understanding of human rights
risks and responsible supply chain practices. Activities included
asix-session online training course for newly appointed VOP
resources. This was led by an external consultant and focused
onrisk mitigation, auditing practices, interview techniques and
remediation of key non-conformities.
We also delivered dedicated training on effective grievance
mechanisms and the use of Burberry-sponsored hotlines.
Inaddition, an in-person VOP Community Day for Italy-based
partners featured workshops on supply chain risks and vulnerable
groups. It included guidance from the IOM on interviewing migrant
workers and adopting gender-sensitive human resources and
health and safety approaches. Additionally, multiple question-
and-answer sessions were held to provide updates on the
programme and offer further support to partners.
Worker grievance mechanisms
We ensure that employees and workers in our supply chain have
access to confidential support and advice. Burberry Confidential
is our global grievance mechanism and is available to all of our
stakeholders, including key rights holder groups (employees,
supply chain workers, communities and our customers).
Sinceearly 2025, we have engaged with supply chain partners,
distribution centres, hubs and service providers to raise awareness
of the hotline across their own organisations and their workforce
through comprehensive training programmes and the provision
oftranslated communication materials and resources.
We also sponsor a confidential hotline and worker outreach
programme in the Asia Pacific region run by Inno Community
Development Organisation, an NGO for workers in our supply
chain, which provides advice on workers’ rights and wellbeing
aswell as confidential support. Additionally, the NGO focuses
onengagement with workers through outreach via messaging apps
and training delivered through live online sessions on key topics,
including working hours, wages, contracts and social insurance.
Italso provides on-site training to strengthen awareness
ofgender-related risks and respectful working environments
forboth management and worker representatives.
Throughout the financial year, together with our NGO partner,
wecontinued to conduct awareness-raising sessions to promote
the use of the confidential hotlines to supply chain workers,
highlighting benefits and the services provided. 100% of all
complaint calls have been responded to and over 99% have
beenaddressed, with action plans in place for the small number
of remaining cases to ensure all concerns are fully resolved.
Grievance resolution is regularly monitored by the Corporate
Responsibility team and any grievances made through Burberry-
sponsored channels are logged and processed with outcomes
formally recorded. Complainants are kept informed that their
report has been received and, where sufficient information
isprovided, that appropriate remedial actions have been taken.
2. Human rights
Supply chain training
Our partners play an integral role in helping us to identify and
mitigate the risk of modern slavery in our supply chain and we
invest in providing training to support this. As part of our supplier
onboarding process, we conduct training with all our new Tier 1
suppliers to ensure they have a clear understanding of our ethical
trade requirements before an audit takes place. We highlight the
importance of being transparent during an ethical audit and share
how our Ethical Trading Programme works.
As part of our commitment to raise our supply chain partners’
awareness about modern slavery risks within their own operations
and extended supply chains, in FY 2025/26 we started a
partnership with a digital training provider. Training modules are
focused on ethical recruitment and employment practices and
address key forced labour risks with country-specific insights.
Training is targeted at supervisor and managerial levels and
isavailable in 34 languages. This interactive learning platform
willallow us to reach more of our supply chain partners and
offergreater flexibility by enabling learning at their own pace.
InFY 2025/26, the training was completed by 764 representatives,
primarily managers and supervisors, across 138 of our supply
chain partners.
1. Supply chain partners are selected based on volumes, value and length of relationship. This ensures that the programme addresses risk within the majority of our Tier 1 supply chain.
Burberry Annual Report 2025/2684

Internal colleague training
During FY 2025/26, we further expanded the rollout of our
Modern Slavery training programme, requiring completion from
over 1,695 colleagues globally across Supply Chain, Product
Development, Corporate Responsibility, Human Resources and
Retail functions, achieving a 94% completion rate. The training
was designed for colleagues who have close contact with key
rights holders, including employees, supply chain workers,
communities and our customers. It highlights risk areas,
demonstrates likely indications of human rights abuses, including
instances of modern slavery, and explains how to take action
ifanincident of modern slavery is suspected.
3. Equal treatment and opportunities for all
Migrant workers
The Migrant Worker Responsible (R&E) Programme was
established in FY 2024/25 in collaboration with the IOM as a pilot
project to raise awareness about the fair and ethical management
of migrant workers. Following its success, ithas since been
established as a fully operational programme within 25 supply
chain partners across our EMEIA supply chain.
The programme aims to build the capacity of our Tier 1 supply
chain partners to effectively manage migrant worker recruitment
and employment practices in line with our Migrant Worker Policy.
It also raises awareness of migrant workers’ increased vulnerability
to potential human rights violations and strengthens partners’
ability to identify, assess, prevent and manage related risks.
Itincludes tailored engagement activities and online and on-site
training, as well as practical guidance tools.
Worker Wellbeing Programme
In FY 2025/26, 10 Tier 1 supply chain partners participated
inourWorker Wellbeing Programme, reaching 13,199 workers
inour supply chain. The programme aims to identify hidden risks
through proactive worker engagement. Additionally, it is intended
to educate supply chain partners on ways to enhance employee
satisfaction by focusing on worker wellbeing and creating
opportunities for meaningful engagement with workers to foster
open dialogue andgather valuable insights.
We engage with stakeholders to inform response actions,
including launching surveys to measure worker wellbeing,
meeting with supply chain partners to identify opportunities
forimprovement and formulating site-specific action plans.
We continue to strengthen the programme by building on the
strong capabilities and insights generated through the worker
engagement survey. In FY 2025/26, we expanded its use across
our due diligence programme, with the tool now activated where
relevant concerns are identified through social audits or grievance
mechanisms, ensuring our approach responds both to planned
priorities and emerging risks.
The performance achieved in FY 2025/26 by our participating
suppliers is as follows: 40% High Satisfaction, 60%
AcceptableSatisfaction
1
.
Health Programme
In FY 2025/26, we continued to deliver our Health Programme
across our supply chain and expanded it to suppliers in two
additional countries across Asia, reaching both local and migrant
workers. During the year, 1,463 supply chain workers participated
in the programme, receiving approximately 2,564 hours of health
training in total.
To ensure the training is effective and relevant for participating
workers, we work closely with supply chain partners and the
medical practitioners delivering the sessions to determine priority
health topics. The programme is structured around four core
modules: women’s health, men’s health, general health and
mental health, covering topics such as reproductive health,
cancer awareness, nutrition and wellbeing.
Training is delivered in workers’ local languages, and in
FY 2025/26 placed particular emphasis on women’s health,
reflecting the specific needs of suppliers and their workforce.
Metrics
People in our supply chain
FY 2025/26 FY 2024/25 FY 2023/24
Number of Tier 1 supply chain partners 680 687 679
Number of total workers in Tier 1 supply chain 75,762 61,495 62,230
Percentage of female workers in Tier 1 supply chain 71% 71% 71%
Percentage of male workers in Tier 1 supply chain 29% 29% 29%
Percentage of Tier 1 production sites covered by national and/or industrial collective
bargainingagreements 76% 78% ~80%
Strategic Report | Sustainability at Burberry
1. Responses are aggregated and converted into a score ranging from 1.00 to 0, which determines the overall level of satisfaction. The different score ranges are structured as follows:
1.00 - 0.85 = Very High Satisfaction, 0.84 - 0.70 = High Satisfaction, 0.69 - 0.55 = Acceptable Satisfaction, 0.54 - 0.40 = Low Satisfaction, 0.40 - 0.00 = Very Low Satisfaction.
Burberry Annual Report 2025/26 85

Strategic Report | Sustainability at Burberry
Social compliance audits and assessments
FY 2025/26 FY 2024/25 FY 2023/24
Number of on-site social compliance audits carried out in the year
(full audit on-site or follow up audit on-site) 436^ 383 495
Number of desktop social compliance assessments carried out in the year 52 86 100
Percentage of our Tier 1 supply chain partners that have had a social compliance audit
orremained in scope from previous audit 69% 75% 71%
Percentage of Tier 1 supply chain partners that do not meet our ethical trading standards 2.6%
1
1% 1%
Breakdown of Tier 1 supply chain partners’ social compliance audit performance
% Business Critical 0.2% 0% 0%
% Critical 2.4% 1% 1%
% Major 59.4% 61% 44%
% Minor 27.2% 26% 27%
% Excellent 10.7% 12% 14%
% Other
2
0% 0% 14%
Percentage of Tier 1 supply chain partners that have improved their social compliance
auditperformance
3
15% N/A N/A
1. Only 2.6% of our Tier 1 supply chain partners were identified to have Critical or Business Critical findings and were managed in line with our Critical procedure. in FY 2025/26.
Themainareas of non-conformance with our standards were related to: incomplete working records, excessive overtime, use of inadequate labour contract, inappropriate behaviour,
poor fire safety conditions. We will continue to work with our partners to identify the root cause of these issues and implement actions to address and prevent them. More details
canbefound inour Modern Slavery and Transparency in the Supply Chain Statement FY 2025/26 available on Burberryplc.com.
2. Other grading refers to Accepted, Pre-approved or Audit to be confirmed.
3. This metric is being reported for the first time in FY 2025/26. Data for the previous financial years is not applicable or available.
^ This metric was subject to external independent limited assurance by Ernst & Young LLP (EY). For the results of that assurance, see EY’s Independent Limited Assurance Report
andBurberry’s Sustainability Basis of Reporting FY 2025/26 on Burberryplc.com.
Human rights training
FY 2025/26 FY 2024/25 FY 2023/24
Number of our colleagues, across all relevant departments, completing training on human rights 1,587 883 125
Number of supply chain partners completing training on human rights and ethical employment 138
4
227 246
4. We began a partnership with the digital training provider Quizrr in late FY 2025/26. The figure for this financial year reflects the training that has taken place since its launch.
Thisnewlearning platform will allow us to reach more of our supply chain partners in the future and offer greater flexibility by enabling learning at their own pace.
Vendor Ownership Programme
FY 2025/26 FY 2024/25 FY 2023/24
Number of Tier 1 supply chain partners involved in the VOP 28 28 24
Number of subcontractors reached through their VOP partners 361 315 310
Number of workers reached in the VOP 44,822 26,505 20,547
Percentage of global Tier 1 supply chain partners involved in the VOP 55% 45% 46%
Migrant Worker Responsible Recruitment and Employment Programme
FY 2025/26 FY 2024/25
Number of Tier 1 supply chain partners engaged in the programme 25 34
Number of Tier 1 supply chain workers reached through the programme 5,846 1,931
Burberry Annual Report 2025/2686

COMMUNITY INVESTMENT
Introduction
We strive to do the right thing for our customers, our communities
and the world around us. We continue our founder’s legacy
bysupporting young people, championing our communities
andcollaborating with organisations to make a positive impact.
This section details the approach, policies and targets which
support our community investment agenda, as well as the related
work we have undertaken in FY 2025/26.
Approach
Since 2010, we have committed to giving at least 1% of profit
before tax (PBT) annually to charitable causes, including amounts
donated to The Burberry Foundation (UK registered charity
number 1154468). Established in 2008, The Burberry Foundation
is governed as a separate entity and operates independently to
Burberry Group plc. As such, it follows the regulations and laws
applicable to charitable organisations in the UK. The Burberry
Foundation’s Board of four trustees meets quarterly and is chaired
by Christopher Holmes, Lord Holmes of Richmond, MBE.
The Burberry Foundation strengthens Burberry’s identity as a
company rooted in creativity, culture and exploration. It reflects
our heritage of enabling people to open new horizons. By providing
simple, meaningful ways to support local communities, The Burberry
Foundation strengthens the colleague experience and builds
pride, belonging and connection across the organisation.
Its purpose is brought to life through Burberry Inspire, a youth
development programme that uses creativity as a tool for
socialconnection and confidence building.
The programme gives young people access to experiences
andskills that support long-term progress.
Programme overview
Across our key operating regions, many young people have
limited access to creative learning, cultural spaces and supportive
environments. This affects belonging, confidence and skill
development. Burberry Inspire responds to this with structured,
creativity-led experiences that build connection and confidence.
Burberry Inspire was launched in June 2023 as The Burberry
Foundation’s flagship programme, in partnership with the
International Youth Foundation globally, OnSide in the UK, and
regional partners across the USA, Italy, Japan, Hong Kong S.A.R.,
China and South Korea.
Burberry Inspire has a mission to provide access to creative
activities for young people from underserved communities.
Theactivities delivered by the programme are youth led and
locally shaped with our regional partners designing activities
thatreflect local needs and culture. To ensure there is lasting,
long-term impact from the programme, we follow a Creative
Youth Development approach, which combines hands-on creative
learning with strong peer and mentor relationships. This shared
impact framework also enables us to consistently measure
andmonitor our impact across all regions.
Burberry colleagues receive three volunteer days per year.
Ourcolleagues can volunteer their time to causes that are
particularly meaningful to them or aligned to Burberry Inspire.
This approach means we can positively impact both our local
andglobal communities.
Strategic Report | Sustainability at Burberry
Worker hotlines
FY 2025/26 FY 2024/25 FY 2023/24
Number of calls to Burberry-sponsored worker hotlines
1
434 451 473
Number of complaints 77 34 22
Number of consulting requests 351 413 447
Number of psychological support requests 6 4 4
Percentage of complaint calls that have been addressed
2
>99% >99% 77%
1. 100% of our Tier 1 global supply chain workers are covered by hotlines, either through Burberry Confidential or NGO-sponsored channels. In early 2025, we expanded Burberry
Confidential across our Tier 1 supply chain and FY 2025/26 is the first year we are reporting the data from this hotline. The FY 2024/25 and FY 2023/24 data is representative
ofNGO-sponsored channels only.
2. 100% of all complaint calls have been responded to and over 99% have been addressed, with action plans in place for the small number of remaining cases to ensure all concerns
arefully resolved.
Health Programme
FY 2025/26 FY 2024/25 FY 2023/24
Number of supply chain workers participating in the Health Programme 1,463 991 832
Worker Wellbeing Programme
FY 2025/26 FY 2024/25 FY 2023/24
Number of Tier 1 supply chain partners participating in the Worker Wellbeing Programme 10 18 9
Number of Tier 1 supply chain workers covered by the Worker Wellbeing Programme 13,199 13,670 11,650
Burberry Annual Report 2025/26 87

The Burberry Inspire programme’s global reach
1. The International Youth Foundation
(global partner)
2. OnSide, UK
3. Save the Children, Poland
4. Girls Inc. of New York City
5. New York Edge
6. Heart of Los Angeles
7. Community Youth Center of San Francisco
Funded by The
Burberry Foundation
8. CSV Milano
9. Co&So, Florence, Italy
10. Future for Youth Foundation, South Korea
11. Girl Scouts of Japan
12. Hong Kong Youth Arts Foundation
13. Haja Center, South Korea
5
4
7
6
11
12
2
9
3
1
8
10
13
Strategic Report | Sustainability at Burberry
Policies
Our Community Investment Policy and Procedures sets out our
approach to community investment, charitable giving, humanitarian
aid, employee volunteering and fundraising. Our community
investment methodology aligns with the Business for Societal
Impact (B4SI) Framework. The policy extends to all Burberry Group
plc operations, including wholly or majority-owned subsidiaries.
Webelieve that by implementing this policy consistently across
ouroperations, we can make a more significant lasting impact
onour communities.
The policy is approved by our Ethics Committee, while our
Corporate Responsibility team monitors its implementation.
Thepolicy is available to staff via Burberry World, our internal
colleague intranet.
Targets
Inspire young people to create better futures
Positively impact 500,000 people between FY 2022/23
andFY 2025/26, particularly young people hailing from
under-served communities.
FY 2025/26 performance
During the financial year, 176,524^ people were positively
impacted
1
through community programmes supported by Burberry
Group plc and The Burberry Foundation. This achievement adds
toour cumulative total of 830,121^ people since FY 2022/23,
exceeding our closing target of 500,000 byFY 2025/26.
Increase volunteering opportunities for colleagues
Since FY 2022/23, we have had a target in place aimed at
increasing volunteering opportunities and engagement for
Burberry colleagues by FY 2025/26. We have been monitoring
performance against this target since FY 2023/24 and found the
approach over-emphasised participation rather than impact and
included initiatives with limited strategic alignment. Asaresult,
thistarget and associated metrics were retired duringFY 2025/26
to focus our efforts on more impact-driven opportunities
andmeasurement.
1. Positively impacted refers to the number of people directly reached by our community programmes, in line with the B4SI framework. Thisincludesindividuals who directly participate
inor benefit from our initiatives, suchas training, mentoring or access to resources and services.
^ This metric was subject to external independent limited assurance by Ernst & Young LLP (EY). For the results of that assurance, see EY’s Independent Limited Assurance Report
andBurberry’s Sustainability Basis of Reporting FY 2025/26 on Burberryplc.com.
Burberry Annual Report 2025/2688

Strategic Report | Sustainability at Burberry
Actions
1. Burberry Inspire Showcase, London
We hosted the annual Burberry Inspire showcase in July 2025,
welcoming more than 60 young people from four OnSide
YouthZones across London to Burberry’s Horseferry House
headquarters for a day celebrating creativity and achievement.
More than 120 colleagues supported the day, creating a platform
for participants to share projects developed through the Inspire
programme while gaining first-hand insight into careers across
the creative industries.
Immersive workshops included a Product Engineering
Masterclass and a Behind the Scenes at the Atelier tour, offering
a closer look at how designs are brought to life. Participants were
invited to collaborate on a mural inspired by Burberry’s heritage
and the theme The Power of Exploration.
The showcase concluded with a performance event introduced
bythe Chair of The Burberry Foundation’s Board of Trustees,
Christopher Holmes, Lord Holmes of Richmond, MBE and OnSide
CEO, Jamie Masraff. From a stop-motion film to music and dance
performances, the programme highlighted the talent, confidence
and creativity developed through Burberry Inspire.
2. Burberry Inspire x Haja Day, Seoul
Haja Center, a Burberry Inspire partner, held the second annual
Burberry Inspire x Haja Day in September 2025. Bringing creativity
to life, the event was a vibrant celebration of community,
imagination and youth-led innovation in Seoul.
This open event provided a dynamic platform for emerging young
creators working across visual arts, writing and digital content
toshare their creative journeys and inspire the wider public.
Throughout the day, young people transformed the Haja Center
into an interactive hub of creativity, designing hands-on booths
where visitors could explore screen printing, wooden mobile
making and other artistic activities. Musical workshops and
writing showcases further highlighted the talent and confidence
of participating creators.
By placing young voices at the centre, Burberry Inspire x Haja
Dayempowered participants to develop new skills, build
self-belief and connect with their community, demonstrating
thetransformative impact of creativity in action.
Burberry Inspire showcase. Burberry Inspire x Haja Day.
Burberry Annual Report 2025/26 89

Strategic Report | Sustainability at Burberry
Fuse Family Art Day, Hong Kong S.A.R., China
Three Burberry colleagues volunteered with Hong Kong Youth
Arts Foundation, a Burberry Inspire partner, for the annual Fuse
Family Art Day in August 2025. A lively celebration of creativity,
connection and community, the event brought young people and
their families together for a day of hands-on artistic exploration
and shared experiences. From crafting expressive wire portraits
inspired by loved ones to energising the space with glowing
Wotagei dance performances, participants discovered new ways
to express themselves and connect through creativity.
Metrics
Positively impacted
FY 2025/26 FY 2024/25 FY 2023/24
Number of people positively impacted
1
through community programmes supported
byBurberryGroup plc and The Burberry Foundation in FY 2025/26 176,524^ 273,435
2
219,377
Number of people positively impacted
1
cumulatively through community programmes
supportedby Burberry Group plc and The Burberry Foundation since FY 2022/23 830,121^ 653,597 380,162
1. Positively impacted refers to the number of people directly reached by our community programmes, in line with the B4SI framework. This includes individuals who directly participate
inor benefit from our initiatives, such as training, mentoring or access to resources and services.
2. This figure may not align with the financial year of contribution for certain partners as Burberry reports impact in the year the impact reports are received from those partners.
^ This metric was subject to external independent limited assurance by Ernst & Young LLP (EY). For the results of that assurance, see EY’s Independent Limited Assurance Report
andBurberry’s Sustainability Basis of Reporting FY 2025/26 on Burberryplc.com.
3. International Youth Day, New York City
In August 2025, we marked International Youth Day with a
celebration alongside Burberry Inspire partner International
YouthFoundation, ringing the Nasdaq Closing Bell in honour
ofBurberry Inspire.
The ceremony showcased the impact of the Burberry Inspire
programme and its mission to empower young people through
creativity. Bringing together partners, including New York Edge
and Girls Inc. of New York City, the moment celebrated collective
efforts to help young people discover their potential.
Marking International Youth Day. Fuse Family Art Day.
Burberry Annual Report 2025/2690

BUSINESS CONDUCT
DISCLOSURES
Our commitment to being a responsible business drives us forward and supports
the long-term success of our people and our Company. Ethical practices are
embedded in our ways of working and we mitigate risks to reduce potential
negative impacts associated with operating a business. Everyone working for
orwith Burberry is expected to adhere to our Code of Conduct.
This section describes our Company’s approach to key ethical business conduct
topics, including anti-bribery and corruption and animal welfare. Other key ethical
business conduct topics are covered within the relevant sections, including our
Social and Environmental statements. This section lays out the policies, processes
and behaviours that we and third parties associated with Burberry must comply
with toensure we are acting in accordance with our values and doing right by
ourstakeholders. Further details of these policies and processes can be found
inourCode of Conduct.
Strategic Report | Sustainability at Burberry
Scarf Craft: it takes more than 30 steps to weave a single Burberry scarf.
Burberry Annual Report 2025/26 91

ANTI-BRIBERY AND CORRUPTION
Introduction
Burberry is an open and caring organisation, a value which is
underpinned by our desire to be responsible. We strive to do the
right thing by our people, our customers, our communities and the
world around us. Complying with applicable laws and regulations
and doing the right thing are embedded in our Company’s culture.
As such, we adhere to and support international efforts to combat
bribery and corruption in accordance with the United Nations
Convention against Corruption, including the UK’s Bribery Act 2010.
Failure to comply with applicable anti-bribery and anti-corruption
laws, whether by Burberry directly or within our wider operations,
could expose us to risks including legal liabilities, financial
penalties, reputational damage and loss of stakeholder trust.
Approach
Our Anti-Bribery and Anti-Corruption Policy is in place to
ensureintegrity in our direct and indirect business operations.
Compliance with the policy is mandatory for our employees,
contractors and all third parties associated with Burberry, with the
policy being shared during our onboarding process and a part of
mandatory employee training. We are committed to investigating
any reports or concerns promptly, thoroughly, independently and
objectively. We have multiple channels for concerns to be raised,
including via line management, Asset and Profit Protection,
Human Resources and Burberry Confidential (which can be used
by employees, contractors and Business Associates). Reports
arehandled in accordance with our Burberry Confidential and
Whistleblowing Policy (available on Burberryplc.com). We have
anopen culture with high standards of accountability and ethical
behaviour. As such, we have zero tolerance for retaliation when
concerns are raised.
Policies
Our Anti-Bribery and Anti-Corruption Policy outlines the steps
taken to prevent bribery and corruption in connection with
Burberry. It explains what bribery, corruption and facilitation
payments are, sets out the obligations of Business Associates,
and details Burberry’s expectations in respect of gifts and
hospitality. Burberry’s General Counsel is responsible for
implementing the policy. The policy is made available to our
employees, contractors and third-party Business Associates
atalltimes via Burberryplc.com. We share a copy of the policy
with third party Business Associates as part of our onboarding
process, and we require contractual assurances that they
willcomply with the policy as a condition of working with us.
Thepolicy is also made available to Burberry employees as part
ofmandatory annual anti-bribery and anti-corruption training,
which covers the content of the policy.
Actions
1. Colleague training
Each year, we carry out online anti-bribery and corruption training
across our corporate, internal manufacturing and retail (manager
level and above) colleagues. In FY 2025/26, 99% of these
colleagues completed their training.
2. Reporting systems update
In FY 2025/26, improvements were made to current reporting
systems to drive efficiencies. This included launching Power BI
dashboards for our Asset, Profit and Protection (APP) and Client
Engagement teams to provide real-time updates of declarations
and more meaningful analytics for insights. With the support
ofour IT team, updates have also been made to the online
register to ensure fewer errors.
Strategic Report | Sustainability at Burberry
Burberry Annual Report 2025/2692

ANIMAL WELFARE
Introduction
As a luxury fashion brand, we use animal-derived raw materials,
including leather and wool, to create ready-to-wear, accessories
and footwear. We are conscious of the potential negative impacts
of mismanagement with respect to the sourcing of these materials.
We believe that animal welfare is of the utmost importance and
are committed to principles and practices that require animals
inour supply chain to be treated with care and respect.
Approach
The capture, maintenance, breeding, raising, transportation and
handling of animals must be undertaken observing the highest
animal welfare standards, and in compliance with all applicable
local animal welfare, social and environmental laws. Burberry
hasdefined specific sourcing requirements for animal-based
materials and identified certification programmes which promote
ethical farming practices and enhance supply chain transparency.
Burberry has a ban on the use of real fur and exotic skins.
Policies
With respect to animal welfare, our Responsible Raw Materials
Sourcing Policy outlines our requirements for value chain partners
and colleagues, as well as our commitments to responsible raw
materials sourcing. The policy (available on Burberryplc.com) also
outlines our requirements with respect to packaging, and animal
welfare and testing. Our Beauty licensee, Coty, publishes its own
Against Animal Testing Policy & Program, which is available
onCoty.com.
Actions
1. Raw materials target progress
In FY 2025/26, 86%^ of key raw materials in our products were
certified or responsibly sourced as defined in our Sustainable
Raw Materials Portfolio (available on Burberryplc.com).
ThePortfolio is based on certification programmes and sourcing
criteria which promote ethical farming practices and enhance
supply chain transparency.
Further details on our raw material sourcing targets and progress
to date can be found in our Biodiversity and Ecosystems section
from pages 65 to 70.
2. Industry collaboration
Burberry is also part of the Textile Exchange Animal Fibers
RoundTable. It aims to create strategies and propose approaches
to setting long-term material commitments to achieve
industrychange.
Strategic Report | Sustainability at Burberry
^ This metric was subject to external independent limited assurance by Ernst & Young LLP (EY). For the results of that assurance, see EY’s Independent Limited Assurance Report
andBurberry’s Sustainability Basis of Reporting FY 2025/26 on Burberryplc.com.
Burberry Annual Report 2025/26 93

Strategic Report | Non-Financial and Sustainability Information Statement
NON-FINANCIAL AND SUSTAINABILITY
INFORMATION STATEMENT
This section of the Strategic Report constitutes Burberry’s Non-Financial and Sustainability Information Statement, produced to comply
with sections 414CA and 414CB of the Companies Act 2006.
The information listed is incorporated by cross-reference.
Reporting
requirement
Policies and standards which
governour approach
Information necessary to understand our business
and its impact, policy due diligence and outcomes
Environmental
matters
• Global Environmental Policy
• Responsible Sourcing Policy
• Chemical Management Standards
• Code of Conduct
• Sustainability at Burberry section, pages46 to 75
• Impact section on Burberryplc.com
• Task Force on Climate-related Financial Disclosures
(TCFD), pages 46 to 75
Employees • Code of Conduct
• Our Culture and Values
• Global Health and Safety Policy
• Ethical Trading Code of Conduct
• Global Diversity, Equity and Inclusion Policy
• Directors’ Report, pages 178 to 180
• Directors’ Remuneration Report, pages 141 to 177
• Our Purpose and Values, page 11
• Stakeholder Engagement, pages 39 to 40
• Gender and Ethnicity Pay Gap Report on Burberryplc.com
• Sustainability at Burberry section, pages76 to 90
Respect for
human rights
• Human Rights Policy
• Ethical Trading Code of Conduct
• Child Labour and Young Worker Policy
• Migrant Worker Policy
• Data Protection Policies
• Information Security Policies
• Model Wellbeing Policy
• Global Diversity, Equity and Inclusion Policy
• Partner Non-Compliance Policy
• Impact section on Burberryplc.com
• Modern Slavery and Transparency in the Supply Chain
Statement FY 2025/26 on Burberryplc.com
• Sustainability at Burberry section, pages76 to 87
Social matters • Ethical Trading Code of Conduct
• Local Stakeholder Engagement Policy
• Volunteering and Match Funding
• Impact section on Burberryplc.com
• Sustainability at Burberry section, pages76 to 90
Anti-corruption
and anti-bribery
• Anti-Bribery and Anti-Corruption Policy
• Cash Acceptance Policy
• Fraud Risk Management Policy
• Reflecting the needs of our stakeholders, People, page40
• Reflecting the needs of our stakeholders, Customers,
page39
• Anti-Bribery and Corruption section, page 92
Additional
disclosure
• Our Business Model, pages 12 and 13
• Environmental and Social Measures (Non-financialKPIs),
pages 36 to 90
• Risk and Viability Report, pages 95 to 105
• Our Purpose and Values, page 11
Burberry Annual Report 2025/2694

Strategic Report | Risk and Viability Report
RISK AND VIABILITY REPORT
Risk management at Burberry supports growth and protects existing value.
Our approach to risk
Group Risk
Effective risk management is integral to the delivery of our
strategic objectives, the protection of our brand and reputation,
and delivering value to our stakeholders. The Group Risk function
integrates enterprise risk management, business resilience and
insurance, while also supporting the consistent integration of risk
considerations into strategic and operational decision-making
across the Group.
By collaborating with teams across the business, Group Risk
enhances the identification and assessment of risks, establishing
therequired mitigation profile to meet the Group’s strategic
objectives and manage risk within Burberry’s risk appetite.
The Group’s business resilience framework focuses on critical
operational risks, ensuring continuity plans are in place and
regularly tested, including scenario-based simulations conducted
with business functions and the Crisis Management team, which
is chaired by the Group CEO.
The Group’s insurance strategy, informed by its risk appetite,
tolerance and overall risk profile, seeks to ensure appropriate
cover for insurable risks. This is achieved through close coordination
across enterprise risk management and business resilience
activities, supporting the protection of the Group’s operations,
balance sheet and stakeholders.
Regulatory developments
A management steering committee reviews current practices for
internal controls and recommends any changes required by the
revisions to Provision 29 of the 2024 UK Corporate Governance
Code, which will apply to the Group from FY 2026/27. For further
details see the Audit Committee report on page 137.
Risk Management Framework
The Group Risk Management Framework, aligned to ISO
31000:2018, sets out the Group’s approach to risk governance,
risk appetite and risk management processes, as illustrated by
Figure 1 on page 96. The framework supports business functions
in managing risks to achieve the Group’s strategic and operational
objectives and provides clear governance for communicating
riskoutcomes to internal and external stakeholders.
The framework is underpinned by ongoing assessment of the
internal and external environment across the short to medium
term, alongside horizon scanning for longer-term and emerging
risks. Internal factors include our people, capabilities, resources,
infrastructure, resilience, culture and objectives. External factors
include customer and shareholder expectations, regulatory
developments, competitive dynamics, luxury industry trends,
rawmaterial volatility, macroeconomic conditions, climate impact,
geopolitical factors and the cybersecurity landscape.
Risk appetite
The Group’s risk appetite, set by the Board, defines the level
ofrisk acceptable in pursuing responsible and sustainable growth.
The Board oversees and challenges management’s identification,
assessment and mitigation of risks to ensure they remain
withinthis appetite.
The Board delegates responsibility for reviewing the
effectiveness of the Group’s risk management and internal
controls to the Audit Committee, supported by the Group’s risk
governance structure (see Figure 1 on page 96). Second- and
third-line teams provide independent assurance to management
and the Audit Committee on the effectiveness of controls
andrelated actions.
The Group’s risk appetite was reviewed by the Risk Committee
and approved by the Board in March 2026.
Risk appetite statement
Weseekto protect the long-term value and reputation of
ourbrand by pursuing responsible, sustainable growth within
adefined risk tolerance.
A measured level of risk is accepted in pursuit of growth
inadynamic luxury market. We accept a moderate level of risk
inthe investment and allocation ofcapital to strategic projects,
enabling profitable growth through creativity and innovation,
while balancing returns with proportionate commercial risk
underthe Capital Allocation Framework.
Compliance with applicable laws, regulations and ethical
standardsremainsfundamental toBurberry’sculture and
strategic ambition. In evaluating risks and opportunities, priority
isgiven to the safety and interests of customers, colleagues,
communities, partnersand the environment.
Burberry Annual Report 2025/26 95

Strategic Report | Risk and Viability Report
Risk identification
• Risks are continuously identified and assessed for their potential
impact on objectives, taking into account both the internal
andexternal environment
Risk assessment
• The Group Risk Management Framework provides guidance
tosupport the assessment of the likelihood and impact of risks,
using a combination of quantitative and qualitative measures
toensure a consistent and proportionate approach
Risk response
• Risks are prioritised against defined tolerances
• Appropriate response strategies are applied, including prevention,
detection, mitigation or transfer (for example through insurance
or contingency planning)
• Controls have defined ownership, governance, reporting
andeffectiveness criteria
Risk reporting and monitoring
• Risks and mitigation actions are monitored through established
risk governance arrangements, with escalation aligned to the
Group’s risk appetite and tolerance
• Where events occur, root-cause analysis is undertaken toidentify
opportunities to enhance controls. Ongoing communication
and training support continuous risk monitoring and effective
escalation across the Group
Audit and assurance
• Internal Audit performs risk-based assurance in accordance
with the annual audit plan approved by the Audit Committee
• Second-line teams undertake assurance activities aligned
tobusiness and regulatory requirements
• Ongoing dialogue with the business supports the identification
and implementation of process and control improvements, with
the audit plan aligned to principal risks and updated throughout
the year as the risk profile evolves
Risk governance
Board
• Responsible for the Risk Management and Internal Control
Framework across Burberry
• Setting and monitoring Burberry’s risk appetite
• Review of the principal risks facing the business, alongwith
thecorresponding mitigation strategies implemented
Audit Committee
• Providing oversight and advice to the Board on current risk
exposures
• Assessing the effectiveness of the Risk Management and
Internal Control Framework on an ongoing basis on behalf
ofthe Board
Risk and Ethics Committees
• Oversight of key risks, reporting to the Audit Committee
• Formal groups for ongoing risk monitoring and decision-making
on risks and issues escalated from business functions
• The Committees can be found on page 121
Leadership teams
• Monitoring the risk landscape and communicating insights
within the function
• Maintaining a business area register of enterprise risks and
controls, and tracking control performance by implementing
appropriate governance
Leadership teams
Risk and Ethics
Committees
Audit Committee
Board
Figure 2. Risk process
Risk process
Figure 1. Risk governance
Top-down approach
Bottom-up approach
Audit and
assurance
Risk
identification
Reporting
and
monitoring
Risk
assessment
Risk
response
Risk
culture
Burberry Annual Report 2025/2696

Strategic Report | Risk and Viability Report
Review of principal risks and the Risk
Management Framework
The Risk Committee endorsed the half-year and year-end risk
assessment of the Group’s principal and emerging risks in October
2025 and April 2026, respectively. These assessments were
subsequently approved by the Audit Committee in November
2025 and May 2026, respectively. There were no changes made
to the Group’s principal risks during the year.
During the year, the following principal risk movements
wereidentified:
Risk increasing
• Geopolitical risk increased, reflecting heightened global
volatility and disruption across energy markets, trade routes
and the broader macroeconomic environment. While near-term
impacts on the Group have been limited, ongoing uncertainty
may give rise to longer-term exposure, which continues to be
actively monitored and mitigated
• Cybersecurity risk increased, reflecting an elevated threat
landscape characterised by more frequent, sophisticated
anddisruptive attacks across the retail and luxury sectors.
TheGroup continues to strengthen its resilience through
enhanced monitoring, employee awareness programmes,
andinvestment in security infrastructure
Risk decreasing
• People risk decreased, reflecting organisational changes
implemented during the year, supported by improved role
clarity, stronger collaboration and increased workforce stability
Principal risks
The Board defines principal risks as the most significant risks
tothe Group, including those that could impact performance,
business model or long-term solvency and liquidity. Risks
areconsidered over different time horizons and are classified
asshort term (up to two years), medium term (two to five years),
orlong term (over five years).
The principal risks disclosed in this Annual Report are not
exhaustive or ranked. Emerging risks are monitored through
ongoing horizon-scanning activities. Each principal risk aligns
with a risk category, External, Strategic, Operational or Compliance,
and may affect one or more of our strategic priorities.
Principal risk assessment
Risks with the potential to impact the Group’s strategic
objectivesare identified, monitored and managed on an ongoing
basis, considering both internal and external factors. Principal
riskupdates are provided to the Risk and Audit Committees
atleasttwice annually. These reviews consider the nature and
descriptionof each principal risk, movements over the period,
risk tolerance, related risks and the effectiveness of mitigating
actions. When a risk is assessed as operating outside tolerance,
additional mitigation plans are developed and monitored through
established governance arrangements until the risk is brought
back within acceptable limits.
Strategic risk
Using our Principal Risk Framework and risk management
process, Group Risk supports business functions in embedding
risk management within their annual strategic planning process
prior to Board approval. Scenario analysis and risk appetite
mechanisms are applied to identify key mitigating actions required
to manage strategic risks effectively.
The Board reviewed the risks embedded within the strategic plans
in October 2025 and March 2026.
Emerging risks
The Board considers emerging risks to be still evolving, with
uncertain likelihood and impact. Emerging risks are assessed
onan ongoing basis alongside principal risks as part of the Group’s
risk management process. Horizon scanning is undertaken through
a combination of top-down and bottom-up risk workshops with
internal stakeholders, participation in industry forums and
engagement with specialist professional consultants
whereappropriate.
Burberry Annual Report 2025/26 97

Principal risk summary
Principal risk Tolerance Movement
Link to strategy
Included in
the viability
assessment CategoryBrand Product Distribution Culture
1. Financial Risk Low*
D
V
External
2. Geopolitical Uncertainty Moderate
D
V
3. Climate Change Low
B
P
D
V
Strategic
4. Global Consumer Demand Moderate
B
P
D
C
V
5. Image and Reputation Low
B
P
D
C
V
6. Strategic Transformation Moderate
B
P
D
C
V
7. Cybersecurity Low
B
P
D
C
V
Operational
8. Supply Chain Low
B
P
D
V
9. IT Operations Moderate
B
P
D
C
V
10. People Moderate
C
11. Intellectual Property andBrandProtection Low
B
Compliance
12. Regulatory Risk and Ethical/
Environmental Standards
Low
C
V
* While our overall tolerance remains low, we maintain a high tolerance for foreign exchange risk.
Strategic Report | Principal Risks
Strategic pillars
B
(Brand) Timeless British Luxury
P
(Product) Lead with Outerwear
D
(Distribution) Align Distribution with
Product andCustomer Strategy
C
(Culture) Reignite a
High-performanceCulture
Risk movement
Risk has remained stable since the prior
financial year
Risk has increased since the prior
financial year
Risk has decreased since the prior
financial year
Viability assessment
V Risk included in the viability assessment
Risk tolerance
Low
We adopt a focused risk-based
approach, seeking toallocate
resources to mitigate related key
risks wherever possible
Moderate
We adopt a risk-based approach
that allocates resources inline
with strategic priorities
High
We have a greater willingness
totolerate risk andprioritise
resources in pursuit of other
strategicobjectives
Burberry Annual Report 2025/2698

Strategic Report | Principal Risks
External risks
1. Financial Risk
D
V
Risk tolerance: Low*
Burberry’s global operations are exposed to risks from
currencyvolatility, interest rate fluctuations and credit exposure
withwholesale partners, suppliers and financial institutions.
Foreignexchange volatility could affect reported results, while
movements in interest rates or borrowing positions may impact
financial performance. Insufficient liquidity or higher leverage
could result in increased financing costs and limit funding
available to support operations.
Mitigating actions
• Hedging of certain external purchases of goods and
intra-group balances using financial instruments
• Monitoring the overall impact of translation exchange
movements to inform guidance provided to shareholders
• Treasury and Group Finance, under the oversight of the
Treasury Committee, monitor the Group’s foreign currency
andinterest rate exposures, as well as its liquidity risk
• The Treasury Committee oversees the Group’s cash position
and financing requirements, ensuring sufficient liquidity
ismaintained to meet foreseeable needs and close out
marketpositions
• Cash flow and liquidity positions are regularly reported
totheBoard
• Scenario testing is performed across the four-year financial
plan, incorporating a range of risk scenarios which assess
impact on cash flow and liquidity
• The financial position of third parties is reviewed before
engaging in contractual agreements, receiving management
information to review their financial positions regularly
• A Revolving Credit Facility (RCF) facility is maintained
• Further details on the approach to managing foreign exchange,
interest rates and liquidity are given in note 26 to the
FinancialStatements
2. Geopolitical Uncertainty
D
V
Risk tolerance: Moderate
The Group operates in a wide range of markets and is exposed
togeopolitical uncertainty stemming from political instability,
conflicts, civil unrest, terrorism and trade restrictions.
Geopolitical instability could affect our ability to source and
operate within markets, adversely impacting our customers,
people, brand and reputation.
Mitigating actions
• External partners are engaged to support our specialist
teamswith horizon scanning and monitoring of geopolitical
developments relevant to our operations. Where a geopolitical
incident occurs, the Incident Management Framework is activated
to assess severity and take appropriate remedial actions
• Geopolitical updates, scenario analysis and deep-dive
assessments are reported to the Risk Committee, Audit
Committee and, where appropriate, the Board
• Assessment of geopolitical risk is also incorporated into
approval processes for investments and new growth
opportunities, including store expansion and franchise
orwholesale partnerships
• Our Onboarding Risk Framework includes geopolitical
considerations in the selection of suppliers and vendors
inoursupply chain
• The Group’s global footprint across multiple customer
segments and regions supports diversification and reduces
reliance on any single customer group or geography
• Crisis management simulations are conducted, with scenario
planning informed by critical and emerging risks facing
thebusiness
• Cross-functional scenario modelling is conducted based
ongeopolitical developments, for example, tariff changes
* While our overall tolerance remains low, we maintain a high tolerance for foreign exchange risk.
Burberry Annual Report 2025/26 99

Strategic risks
3. Climate Change
B
P
D
V
Risk tolerance: Low
Market and reputational risks arising from climate change may
adversely affect demand for our products or influence investor
and stakeholder expectations. Evolving climate-related regulations,
including carbon pricing and enhanced Environmental, Social
andGovernance (ESG) disclosure requirements could increase
operating and compliance costs, with failures to comply potentially
resulting in financial penalties and reputational damage.
Mitigating actions
• Our response to managing climate-related risks is detailed
within our TCFD section from pages 46 to 55
4. Global Consumer Demand
B
P
D
C
V
Risk tolerance: Moderate
Misalignment between global inventory planning and consumer
demand could impact our profitability. Consumer demand and
spending in the luxury market are influenced by external factors,
including macroeconomic conditions (including inflation), extreme
weather and public health crises. Demand is also dependent
onBurberry’s brand relevance, shaped by design, perceived
quality, breadth of range, pricing, distribution, marketing
effectiveness, customer experience, competitive dynamics
andsustainability preferences.
Mitigating actions
• Industry specialists provide insights on emerging risks,
consumer trends, market outlook and growth opportunities,
informing inventory planning, marketing and financial strategies
• Store performance and regional market dynamics are reviewed
to guide commercial investment
• Product range planning, balancing carry-forward,
replenishment and newness are informed by previous seasonal
performance, regional inputs on trends, demand forecasts,
feedback and competition
• Pricing architecture spans tiers to reach a broad luxury
audience, with execution reviewed and aligned to currency
andmarket movements
• Customer journeys are monitored through KPIs (for example,
Net Promoter Score) to drive improvements and track
strategicprogress
• Enhancement of cross-channel customer engagement model
and using an AI-driven clienteling programme to enhance
personalisation, engagement and retention
5. Image and Reputation
B
P
D
C
V
Risk tolerance: Low
Unfavourable incidents, unethical behaviour, failure to
demonstrate cultural and social sensitivity or negative media
coverage relating to the Group’s people, practices, products
orthird-party suppliers could damage the Group’s image and
reputation. This could lead to a reduction in sales or loss
ofcustomers, negatively impacting the value of our brand.
Mitigating actions
• Governance of reputational risks, issues and mitigations
overseen by the Ethics, Sustainability, Risk and
AuditCommittees
• Due diligence is completed prior to engaging third-party
collaborators and risk assessments are performed ahead
ofallmarketing campaigns, runway shows and events
• Strict approval processes and editorial controls are embedded
to ensure all product and content is reviewed andsigned off
prior to external release
• Sustainability, cultural and ethical practices are embedded
throughout the organisation by means of training and guidance
materials provided to support our teams
• Annual mandatory training is provided and monitored to ensure
all employees and relevant third parties adhere to the Code
ofConduct
• An Incident Management Framework is maintained, which
includes continuous monitoring of social networks and
response procedures
• Ethical audits are completed to ensure supply chain partners
meet our required standards
6. Strategic Transformation
B
P
D
C
V
Risk tolerance: Moderate
Failure to successfully deliver organisational transformation,
including delivering and sustaining the benefits of the programme
to foster resilience and commercial growth, could result in
underperformance against our peers.
Mitigating actions
• The Executive Committee reviews the delivery of strategic
programmes, including assessing progress, risks, dependencies,
impacts and deviations from targets
• The Executive Committee oversees aligned workstreams and
works collaboratively across functions, enabling transparent
communication, timely escalation and effective decision-making
• Partnering with topical specialists, the transformation
programme frequently scans for changes in the external
environment which may impact the strategy and conducts
benchmarking of the business’s capabilities and performance
against peers and the market
Strategic Report | Principal Risks
Burberry Annual Report 2025/26100

Strategic Report | Principal Risks
Operational risks
7. Cybersecurity
B
P
D
C
V
Risk tolerance: Low
A cyberattack could result in a system outage, major data
lossand/or impact core operations. This could in turn lead
toregulatory non-compliance, as well as reputational and/or
financial damage. The nature of the attack could include social
engineering, ransomware, credential compromise of accounts
orexternally facing assets that target Burberry or those
ofathird-party provider.
Mitigating actions
• Ongoing enhancement of our 24/7/365 global security
monitoring and analytics capability, supported by security
incident response plans, processes and attack simulations
• Solutions are in place to help detect personal and sensitive
data loss, including robust access management controls
• Second-line assurance checks are conducted with reporting
oncontrol effectiveness to executive and IT management
• Governance is provided through a cross-functional
Cybersecurity Steering Group with executive membership
andsponsorship. Specialist steering groups oversee emerging
data regulations
• Enhancing business resilience through IT Disaster Recovery
and Business Continuity plans and tests
• A security-aware culture is promoted through mandatory
training, awareness activities and phishing simulations
• Maintenance of business financial controls to support fraud
detection/prevention
• Enhancement of our third-party due diligence and risk
reportingcapabilities
• Ongoing focus on IT preventative maintenance activities
8. Supply Chain
B
P
D
V
Risk tolerance: Low
Internal and external factors may disrupt the sourcing,
manufacturing, procurement or distribution of products on
atimely basis at the required quality, cost, quantity or ethical
standards. Potential causes include critical path delays, extreme
weather, natural hazards, geopolitical events, terrorism, strikes,
social unrest, cyberattacks, supplier insolvency, IT outages, data
loss, property damage or infectious diseases. This could disrupt
production or deliveries, causing financial and reputational harm.
Mitigating actions
• A documented raw material sourcing strategy defines
approvedcountry of origin and sourcing guidance
• The Group has a defined Onboarding Risk Framework for
theselection of new vendors and suppliers
• A detailed critical path aligns seasonal delivery targets with
keydesign milestones, including prototype review and
engineering validation
• Responsible Business Principles and the Responsible
RawMaterials Sourcing Policy are embedded in the Code
ofConduct and supplier contracts
• Manufacturing and distribution network structures are
reviewed to reduce dependency on key sites and suppliers
• Product suppliers and vendors are subject to quality control
programmes, including site inspections, independent product
testing and receipt/dispatch checks to ensure regulatory,
chemical and safety compliance
• Supply chain partners are risk assessed and subject
toannounced and unannounced audits of compliance with
Ethical Trading Standards, with findings monitored digitally
• Global shipments and delivery performance are tracked
tosupport forward planning and timely issue resolution
• Business Continuity plans cover major manufacturing and
distribution sites, supported by a Minimum Viable Company
(MVC) assessment to identify the most time-critical processes
• A comprehensive insurance programme helps mitigate
thefinancial impact of certain supply chain-related events,
including fire, flood, extreme weather, product liability
andassociated losses
Burberry Annual Report 2025/26 101

Strategic Report | Principal Risks
9. IT Operations
B
P
D
C
V
Risk tolerance: Moderate
Inadequate technology support and/or recovery of an IT system
or service outage underpinning critical processes across the
Group could significantly impact the Group’s ability tooperate.
Failure to provide technology that meets consumer expectations
and empowers innovation could impact consumer demand for
ourproducts and services.
Mitigating actions
• An IT operating model and Business Demand Forum have been
established to help align technology with the Burberry Forward
strategy and functional priorities
• A governance framework is embedded with executive
representation to support IT investment decisions, key risk
management and operating budgets
• The Group continuously implements controls to improve the
operation of IT systems, including preventative maintenance,
landscape health and third-party management
• Business resilience is enhanced through IT Disaster Recovery
and Business Continuity plans and tests. An Incident
Management Framework is in place to report, escalate and
appropriately respond to incidents
• An AI Steering Committee and a Demand Forum have been
established to govern and guide the deployment of AI across
the organisation
• Continued simplification of our technology landscape, focusing
on a resilient and well controlled architecture supported
bystrategic partners
10. People
C
Risk tolerance: Moderate
Changes in the internal and external environment may impact
ourability to attract, motivate, developand retain employees
andto maintain a diverse workforce with the right capabilities
todrive performance and meet our strategic objectives.
Mitigating actions
• The Executive Committee and senior leaders review the talent
and capabilities required to support the delivery of our Burberry
Forward strategy, aligning them with evolving business needs,
with specific focus on development and internal movement
oftalent
• Our reward philosophy focuses on providing all colleagues
witha competitive total reward package which includes
fixedpay, variable pay linked to performance and a suite
ofmarket-aligned benefits. Regular pay analysis is conducted
to ensure our reward offering remains competitive
• All employees have access to our digital learning platform,
providing flexible on-demand resources. Our leaders and
linemanagers are supported through our tailored B:Leaders
and B:Managers training programmes
• Our Diversity, Equity and Inclusion Policy and practices are
regularly reviewed. Industry best practice is used to ensure
inclusive hiring and to deliver the initiatives that are most
important to our colleagues
• Colleague engagement is supported through global and
functional town halls, engagement groups and surveys,
enabling us to listen to colleagues, capture feedback and
respond through targeted actions
Burberry Annual Report 2025/26102

Strategic Report | Principal Risks
Compliance risks
11. Intellectual Property
and Brand Protection
B
Risk tolerance: Low
Counterfeiting, copyright, trademark and design infringement
inthe marketplace could reduce demand for genuine Burberry
merchandise and impact the luxury positioning of the brand.
Challenges against Burberry’s IP rights or allegations of
infringement against Burberry, distribution outside of our
authorised network and parallel tradecould negatively impact
demand for Burberry products and harm our luxury reputation.
Mitigating actions
• Our Brand Protection Policy is available to all colleagues and
isreviewed annually to ensure relevance
• Brand protection enforcement is conducted globally. The Brand
Protection team partners with enforcement agencies, digital
and social media platforms, external lawyers and peer brands
to disrupt the flow of counterfeit and infringing products by
monitoring the market, reducing visibility of counterfeits and
infringing items, and enforcing to source level where possible.
This includes online monitoring and take-down activities,
legalaction where appropriate and agency training provided
bythe Brand Protection team
• In addition to registering designs across all relevant markets,
existing branding and new brand signifiers are protected
bytrademarks and copyright
• The dedicated Brand Protection team partners with Product
Design andCreative Content teams to ensure that our products
and content respect the rights of third parties and to establish
adequate protections
12. Regulatory Risk and Ethical/
EnvironmentalStandards
C
V
Risk tolerance: Low
In the jurisdictions in which Burberry operates, the
Groupcomplies withlaws and regulations regarding products,
compliant use of technology, corporate fraud, anti-bribery and
corruption, anti-money laundering, competition, data, corporate
governance, employment,ESG, tax, trade compliance, sanctions,
human rightsand employee and customer health and safety.
Changes to laws and regulations, non-compliance or a major
compliance breach could have a material impact on our business
operations, reputation and/or financial performance.
Mitigating actions
• Specialist corporate and regional teams, supported
bythird-party advisers where required, provide guidance
oncompliance with applicable laws, tax requirements, and
ethicaland business policies. These teams support colleagues
inunderstanding relevant obligations and report to specialist
committees and the Board as appropriate
• The Code of Conduct sets out the standards expected
ofcolleagues and third parties to ensure lawful and ethical
behaviour in line with Burberry’s values. Mandatory annual
training is provided to colleagues, and the Code of Conduct
forms part ofcontractual arrangements with supply chain
partners and other key third parties
• Supply chain vendors, suppliers and subcontractors undergo
risk-based due diligence, supported by an Ethical Trading
Programme that includes announced and unannounced audits.
Third-party performance is monitored against our Human
Rights Policy and governance framework
• The Global Health and Safety Policy defines the Group’s
commitments to safety standards, hazard identification and
continuous improvement. A global risk assessment process
covers retail, corporate and supply chain environments, with
quarterly reviews and oversight by the Global Health and Safety
Committee, including consideration of incident and audit trends
• The Group promotes a strong speak-up culture, supported
bythe Burberry Resolution Hub and the Burberry Confidential
whistleblowing line, available to employees and supply chain
partners. These mechanisms support the identification and
prevention of misconduct and fraud involving the Group
orassociated third parties
• International tax developments are monitored closely, with
theGroup’s Tax strategy reviewed annually by the Audit
Committee. Trade compliance is managed through the Group’s
Authorised Economic Operator (AEO) programme, supported
by third-party specialists
• A monthly fraud investigation forum reviews emerging risks
andsupports the prevention and detection of fraudulent activity
across the organisation
Burberry Annual Report 2025/26 103

VIABILITY STATEMENT
Strategic Report | Viability Statement
Corporate planning process
Burberry’s annual corporate planning process consists of
preparing a long-term strategic plan, forecasting the current year
business performance and preparing a detailed budget for the
following year. These plans form the basis for assessing the
longer-term prospects of the Group.
Our strategic planning process includes detailed reviews of
thebudget, forecasts and long-term plans by our CEO and CFO
inconjunction with our Regional and Functional Leadership teams,
followed by a presentation and discussion of the long-term
strategic plan by the Board. Delivery against the plan is monitored
through monthly reporting on actual performance, the annual
budget process and subsequent forecast updates.
The key assumptions considered in our strategic plan are
futuresales performance by product, channel and geography;
thecost to procure and produce our products; our investment
inthe marketing of our products and brand awareness; other
expenditure plans; cash generation and the use of our capital
investment in our store portfolio and that there is no material
long-term impairment to the Burberry brand. We also consider
theGroup’s projected liquidity and balance sheet strength.
Where appropriate, we have adjusted our planning process
toinclude scenarios relating to key assumptions as a result
oftheuncertain macroeconomic and geopolitical environment.
Assessment of prospects
In November 2024, we announced Burberry Forward, our
strategic plan to reignite brand desire, improve performance
anddrive long-term value creation.
This financial year has been a meaningful inflection point
withareturn to positive comparable sales growth. Ourstrategy
isworking and as we look ahead, our focus is ondisciplined
execution of Burberry Forward to take advantage ofthe
opportunities for growth. With increased brand relevance and
product authority, Burberry is firmly positioned for sustainable
profitable growth.
We have been reconnecting our brand with its founding principle,
which is to design clothing to protect people from the weather.
We are leaning into our heritage and leveraging our strengths
witha disciplined approach, as we believe we have the greatest
opportunity where we have the most authenticity. We are evolving
our product offer to appeal to a broad base of luxury customers.
The Group’s strategy is set out on page 17.
The Group’s key priorities for FY 2026/27 are a continued
focuson the disciplined execution of Burberry Forward. To drive
Burberry forward, we have optimised our operating model and
areimproving our ways of working across the organisation.
Throughout our retail network we are focused on improving
productivity and we are operating with greater cost discipline
across the organisation, driven by the mindset of saving
tore-invest and fuel growth.
We have returned to positive comparable sales growth and
reignited our brand momentum, supported by strong cash
generation and balance sheet strength. We remain confident
thatour strategic plan will improve our performance and drive
long-term value creation.
The Group’s approach to balance sheet and liquidity is to
managethe business efficiently and flexibly, maintaining control
and preserving the long-term value of the Burberry brand while
ensuring we secure the financial headroom required to fuel
growth as market opportunities arise.
Considering the continuing uncertain global consumer
demandand geopolitical environment, we have prepared several
planning scenarios based on a range of assumptions and
potential outcomes.
In assessing the viability of the Group, the Board has carried out
arobust assessment of the principal risks of the Group, as set
outin the Risk report on page 95, and the principal risks and
uncertainties as set out on pages 99 to 103.
The Directors have considered the potential impact of the risks
onthe viability of the Group.
Basis of assessment
The assessment of viability has been made with reference
totheGroup’s current position and expected performance over
athree-year period to March 2029. This is considered appropriate
for use by the Directors because:
• it aligns with the Group’s approach to long-range planning;
• it is sufficient to almost cover all currently approved capital
expenditure projects; and
• as the Group has little contracted income, and as most current
business development projects will be completed in the
three-year period, projections beyond this period will contain
long-term growth assumptions.
Scenarios
We have developed a range of scenarios, which were informed
bya comprehensive review of macroeconomic scenarios using
third-party projections of macroeconomic data for the luxury
fashion industry and financial outcomes of risks materialising
across the industry over the last 10 years. In developing these
scenarios, the Directors have assumed there is no material
long-term impairment to the Burberry brand.
The Group central planning scenario reflects a balanced
projection aligned to the group’s strategy, a balanced assumption
for economic uncertainty and investment in capital expenditure
and marketing.
It reflects FY 2026/27 and the subsequent two-year period
toMarch 2029.
As a sensitivity, this central planning scenario has been flexed by
an 18% downgrade to revenues in FY 2026/27 and a 14% reduction
in revenues across the full three-year period, as well as the
associated consequences for EBITDA and cash.
Burberry Annual Report 2025/26104

Strategic Report | Viability Statement
Management considers this represents a severe but plausible
downside scenario appropriate for assessing going concern
andviability. This was designed to test an even more challenging
trading environment as a result of geopolitical and macroeconomic
uncertainty together with the potential impactsofthe Group’s
other principal risks, as described onpages 99to103.
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 over the three-year
period to March 2029 was, in the Group’s opinion, implausible.
The severe but plausible downside modelled the following risks
occurring simultaneously:
• An increase in geopolitical tension which causes consumer
demand challenges and additional inflationary impacts
compared to the central planning model
• A severe impact arising from 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
• 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a longer interruption to our digital site
• The occurrence of a one-time physical risk relating to climate
change in FY 2027/28 and the materialisation of a severe but
plausible ongoing market risk relating to climate change in
linewith a scenario reflecting a global temperature increase
aligned with a Net Zero 2050 scenario
• The payment of a settlement arising from a regulatory
orcompliance-related matter
• The execution risk of not delivering the anticipated future 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
This approach provides the Board reasonable comfort that the
Group’s going concern and viability positions have been assessed
to a severity level, which more than accommodates the impact
ofone or more of the Group’s principal risks.
Funding
In assessing the viability of the Group, the Directors have also
considered the Group’s current liquidity and available facilities
(set out in note 26 of the Financial Statements), financial risk
management objectives and hedging activities (set out in note
26of the Financial Statements). In our central planning and
severe but plausible downside scenarios, the Group maintained
the necessary liquidity levels.
The Group has a five-year £450 million unsecured sterling bond
which is due for repayment in June 2030, outside the going
concern and viability period.
The Group has a £75 million RCF which is currently drawn and
duefor repayment in March 2028. The viability modelling includes
this being repaid with available cash resources in all scenarios.
The Group also has access to a £300 million RCF, currently
undrawn and not relied upon in the viability assessment.
Conclusion
Based on this assessment, the Directors have a reasonable
expectation that the Group will be able to continue in operation
and meet its liabilities over the period to March 2029.
The Strategic Report up to and including page 105 was approved
for issue by the Board on 13 May 2026 and signed on its behalf by:
Gemma Parsons
Company Secretary
Burberry Annual Report 2025/26 105

Corporate Governance Statement
Lina Zhang for Winter 2025, shot by Sam Rock.
Burberry Annual Report 2025/26106

Corporate Governance Statement
Corporate
Governance
Statement
Chair’s Introduction 108
Board of Directors 109
Executive Committee 113
Corporate Governance Report 114
Monitoring our Culture 116
Principal Areas of Focus for the Board During FY 2025/26 118
Key Decisions During FY 2025/26 119
Governance Structure and Division of Responsibilities 121
Composition, Succession and Evaluation 125
Nomination Committee Report 127
Audit Committee Report 132
Directors’ Remuneration Report 141
Directors’ Report 178
Burberry Annual Report 2025/26 107

Dear Shareholder,
On behalf of the Board, I am pleased to present the Corporate
Governance Statement for the year ended 28 March 2026.
Itdescribes Burberry’s corporate governance framework
andprocedures. Italso summarises the work of the Board
anditsCommittees toillustrate how we have discharged
ourresponsibilities this year.
Areas of focus
Throughout FY 2025/26, the Board remained focused on
long-term value creation and effective oversight of management’s
execution of the Burberry Forward strategic plan and recovery
ofoperational and financial performance. This included delivery
of the Organising for Growth transformation programme, our
reimagined purpose and values and the strengthening of customer
and operational priorities. The Board also oversaw the review of
Burberry’s sustainability targets, including approving the extension
of our overall net zero target from FY 2039/40 to FY 2049/50, and
the approval of our Climate Transition Plan. Further information on
the Board’s areas of focus during the year is set out on page 118.
Board changes during FY 2025/26
A number of Board changes happened in the early part of the
year. Stella King joined the Board as a Non-Executive Director
on1 April 2025 and Fabiola Arredondo, Sam Fischer and Antoine
de Saint-Affrique retired as Non-Executive Directors following
theAnnual General Meeting (AGM) on 16 July 2025. I would like
tothank Fabiola, Sam and Antoine for their service to the Company
and the extensive knowledge and experience they brought to
Board discussions throughout their tenures. Information on the
induction programme for Stella was included in the FY 2024/25
Nomination Committee Report.
Succession planning and the orderly evolution of the Board
remain priorities for the Board to ensure continuity of oversight
while maintaining an appropriate balance of skills and experience
aligned to the Group’s strategic direction.
Further information is included in the Nomination Committee
Report on page 127.
Board effectiveness
The Board conducted an internally facilitated review of its
effectiveness during the year which confirmed that the Board and
its Committees continue to operate effectively. Further information
on the review process and areas of focus for FY 2026/27 identified
through the review are summarised on page 125. Anupdate
onour progress against the actions identified in theeffectiveness
review conducted in respect of FY 2024/25 isalso provided
onpage 126.
CHAIR’S INTRODUCTION
“Throughout
FY 2025/26, the
Board remained
focused on
long-term value
creation.”
As Chair of the Board, one of my principal responsibilities is
toundertake an annual review of the performance of my fellow
Directors. This review process is essential to ensure that each
Board member is able to contribute to the best of their ability,
thereby supporting the overall effectiveness and success
oftheBoard.
The Nomination Committee also performed the annual review
ofDirectors’ time commitments and independence on behalf of
the Board. Further information on its considerations are contained
within the Nomination Committee Report on pages 129 to 130.
Culture and employee voice
Culture underpins sustainable performance and stakeholder
trust.The Board is responsible for setting the tone at the top
ofthe organisation and ensuring Burberry’s culture is aligned
withourpurpose and values. During the year, the Board continued
toprioritise hearing directly from colleagues and understanding
their experience of working at Burberry. We do this through
arange of channels, including Employee Engagement Surveys,
theGlobal Workforce Advisory Forum and attending town
hallmeetings which enable open dialogue on matters that are
important to colleagues across the Group. These engagements
give my fellow Non-Executive Directors and me valuable
insightinto Burberry’s culture, how our purpose and values
areexperienced in practice and the issues and opportunities
colleagues experience as we deliver our strategy. The Global
Workforce Advisory Forum meetings, in particular, provide a
strong and constructive feedback mechanism and I am grateful
toits members for their participation and their candid comments.
Directors’ Remuneration Policy
The Burberry Directors’ Remuneration Policy was last approved
by shareholders in 2023. In line with the Companies Act 2026,
which requires shareholder approval at least every three years,
Danuta Gray, Chair of our Remuneration Committee, and
Iundertook an extensive shareholder engagement programme
aspart of developing our 2026 Directors’ Remuneration Policy
proposals. Further information on our proposals is set out
intheDirectors’ Remuneration Report on pages 150 to 160.
UK Corporate Governance Code
As set out on page 114, the Board confirms compliance with
theapplicable principles and provisions of the UK Corporate
Governance Code 2024 during FY 2025/26. Good progress
hasalso been made in preparing for compliance with Provision
29ofthe Code, which will apply to Burberry from FY 2026/27.
Further details regarding our preparedness for Provision 29
areset out in the Audit Committee Report on page 137.
I am pleased with the way our governance processes operated
during the year and would like to thank my fellow Board members
for their engagement and continued support throughout the year.
Gerry Murphy
Chair
Corporate Governance Statement | Chair’s Introduction
Burberry Annual Report 2025/26108

Corporate Governance Statement | Board of Directors
BOARD OF DIRECTORS
Dr Gerry Murphy
Chair
N
Appointed as Chair: 12 July 2018
Appointed: 17 May 2018
Nationality: Irish/British
Key skills and experience
Gerry brings substantial international and
senior management experience to the
Board, in addition to in-depth knowledge
of managing business transformations.
His understanding of UK corporate
governance requirements and extensive
experience in the retail sector provides
the Board with highly relevant and valuable
leadership as Burberry continues to focus
on delivering long-term sustainable value
for all our stakeholders.
Current appointments
• Chair, Tesco plc
• Trustee and Director, The Burberry
Foundation
• Senior Advisor, Perella Weinberg
• Mentor, Chair Mentors International
Previous appointments
• Chair: Tate & Lyle plc and The
Blackstone Group International
(andpartner in the firm’s private
equityinvestment unit)
• Non-Executive Director: British
American Tobacco plc, Merlin
Entertainments plc, Reckitt Benckiser
plc, Abbey National plc and Novar plc
• CEO: Kingfisher plc, Carlton
Communications plc (now ITV), Exel plc
and Greencore Group plc
• Mentor, J&A Mentoring
Joshua Schulman
Chief Executive Officer
Appointed: 17 July 2024
Nationality: American
Key skills and experience
Joshua is an accomplished Chief
Executive Officer who has held a
numberof CEO and senior executive
roles at global luxury, fashion and retail
businesses. His extensive retail industry
experience spans over 30 years across
merchandising, wholesale and brand
management in the USA, Europe and Asia,
with a strong track record of delivering
brand transformations and driving growth
globally. Joshua shares the Board’s
ambition to build on Burberry’s unique
British heritage to deliver growth and
unlock the brand’s full potential.
Current appointments
• Trustee and Director of the Elton John
AIDS Foundation
Previous appointments
• CEO: Michael Kors, Coach,
JimmyChoo
• President: Bergdorf Goodman
andNMG International
• Non-Executive Director: Farrow & Ball
• Senior executive roles: Yves Saint
Laurent, Gucci
Committee key
Chair
A
Audit Committee
N
Nomination Committee
R
Remuneration Committee
More information on the Board’s
skill set can be found on page 129.
Burberry Annual Report 2025/26 109

Corporate Governance Statement | Board of Directors
Orna NíChionna
Senior Independent Director
N
R
Appointed: 3 January 2018
Nationality: Irish
Key skills and experience
Orna is a highly experienced
Non-Executive Director and brings
extensive international business
knowledge, particularly in the consumer
and retail sectors. She has a passion for
sustainability, as demonstrated through
her role as Chair of The Eden Trust.
Having co-led the European Retail
Practice at McKinsey & Company and
subsequently held a number of advisory
roles across retail and luxury goods
businesses, she has a deep understanding
of retail strategy, transformations and
operating efficiency.
Current appointments
• Trustee and Deputy Chair, Institute
forFiscal Studies
• Trustee and Chair, The Eden Trust
Previous appointments
• Chair: Founders Intelligence and
SoilAssociation
• Interim Chair, The National Trust
• Senior Independent Director: Saga,
Bupa, HMV, Northern Foods and
RoyalMail
• Non-Executive Director, Bank
ofIrelandUK
• Partner, McKinsey & Company and
co-lead of its European Retail Practice
Alessandra Cozzani
Independent Non-Executive Director
A
N
Appointed: 1 September 2023
Nationality: Italian
Key skills and experience
Alessandra brings to Burberry both
financial expertise and a profound
understanding of the luxury market,
having spent over 20 years at Prada
Group. A highly experienced Chief
Financial Officer, Alessandra’s career
spans a variety of finance roles, including
financial management and control,
accounting, tax, treasury and insurance,
as well as investor relations. She started
her career as an auditor at Coopers
&Lybrand.
Current appointments
• Director, Esselunga SpA
• Non-Executive Director, Brembo N.V.
Previous appointments
• Group Chief Financial Officer and
Executive Director of Prada SpA (listed
in Hong Kong S.A.R., China), previously
Group Investor Relations Director and
other financial management roles
within Prada Group
Kate Ferry
Chief Financial Officer
Appointed: 17 July 2023
Nationality: British
Key skills and experience
Kate is a highly experienced Chief
Financial Officer, having held roles
inboth public and private companies.
Inaddition to her financial acumen,
Katehas extensive experience driving
business transformation and strategic
development, and a deep understanding
of public markets. She has particular
expertise in the retail sector, as well
asanexcellent understanding of the
luxuryindustry. In her early career,
Katewas involved in numerous IPOs,
including Burberry’s in 2002. Kate
isaCharteredAccountant.
Current appointments
• Trustee and Director, and Chair
oftheAudit Committee, British
OlympicFoundation
Previous appointments
• Non-Executive Director and Chair
ofthe Audit Committee, Greggs plc
• Chief Financial Officer, McLaren
GroupLimited
• Group Chief Financial Officer,
TalkTalkTelecom Group PLC
• Corporate Affairs Director,
DixonsCarphone PLC
• Director within the retail sector equity
research team at Merrill Lynch
Burberry Annual Report 2025/26110

Corporate Governance Statement | Board of Directors
Ron Frasch
Independent Non-Executive Director
A
N
R
Appointed: 1 September 2017
Nationality: American
Key skills and experience
Ron has spent over 30 years working
inthe retail industry. He has clear strategic
acumen, strong leadership skills and
wide-ranging experience of working
withluxury fashion brands. While at Saks,
hewas instrumental in developing the
company’s private-label collections.
Ron’smerchandising skills and experience
within the fashion industry will continue
toplay a pivotal role as we strengthen our
performance in the luxury fashion market.
Current appointments
• Non-Executive Director, Crocs Inc.
• CEO, Ron Frasch Associates LLC
Previous appointments
• Non-Executive Director: MacKenzie
Childs and Aztech Mountain
• President and Vice Chairman,
SaksFifth Avenue Inc.
• President and CEO, Bergdorf Goodman
• President of the Americas for an
Italianlicensing company of luxury
fashion brands
Danuta Gray
Independent Non-Executive Director
A
N
R
Appointed: 1 December 2021
Nationality: British
Key skills and experience
Danuta is a highly experienced
Non-Executive Director and Chair with
astrong understanding of consumers,
technology, sales and marketing within
the UK and international business
markets gained through her executive
career. Her extensive UK plc board
experience and understanding of UK
governance requirements make her
astrong asset to our Board.
Current appointments
• Chair, Croda International plc
• Board member, Employ Autism
Development
• Trustee, The Resolution Foundation
Previous appointments
• Chair: Direct Line Insurance Group plc
and St Modwen Property plc
• Senior Independent Director,
Aldermore Bank plc
• Non-Executive Director and
Remuneration Committee Chair:
OldMutual plc and Page Group plc
• Non-Executive Director: Paddy Power
plc, Aer Lingus plc and UK Ministry
ofDefence
• CEO: Telefónica O2 and Executive
Director, Telefónica Europe plc
Stella King
Independent Non-Executive Director
N
Appointed: 1 April 2025
Nationality: Italian
Key skills and experience
Stella brings a wealth of luxury industry
experience and a deep understanding
ofAsian consumers, having worked
intheAsia Pacific region for more than
30years. As Chief Chinese Business
Officer for Moncler, Stella was responsible
for developing strategies to meet the
needs of Chinese consumers all over
theworld. Prior to this role, Stella was
President, Asia Pacific for Moncler
whereshe played a pivotal role in driving
growth in the region.
Current appointments
• Senior Advisor, FountainVest
GroupLimited
Previous appointments
• Chief Chinese Business Officer, Moncler
• President Asia Pacific, Moncler
• President Asia Pacific, Sergio Rossi
• Non-Executive Director, Stone Island
(part of the Moncler Group)
Burberry Annual Report 2025/26 111

Board composition
As at 13 May 2026
Corporate Governance Statement | Board of Directors
Directors whose tenure ceased during
FY 2025/26:
• Fabiola Arredondo stepped down as
Non-Executive Director on 16 July 2025
• Sam Fischer stepped down as
Non-Executive Director on16 July2025
• Antoine de Saint-Affrique stepped
down as Non-Executive Director
on16 July 2025
Gemma Parsons
Company Secretary
Appointed: 1 October 2018
Nationality: British
Gemma is a Fellow of the Chartered
Governance Institute and has
30years’ company secretarial
experience. She is a member of the
Chartered Governance Institute’s
Company Secretaries’ Forum
andofthe Association of General
Counsel and Company Secretaries
of the FTSE 100 (GC100).
Previous appointments
• Company Secretary, The Berkeley
Group Holdings plc
• Deputy Company Secretary,
Smith & Nephew plc
• Deputy Company Secretary,
TSBBanking Group plc
Alan Stewart
Independent Non-Executive Director
A
N
R
Appointed: 1 September 2022
Nationality: British
Key skills and experience
Alan has extensive corporate finance
andaccounting experience gained from
avariety of industries, including retail and
leisure. He has considerable executive
leadership experience, including various
Chief Financial Officer positions within
top FTSE organisations. Alan is currently
amember of Chapter Zero, a community
of non-executive directors committed
toachieving net zero targets, and was
afounding member of the Accounting
ForSustainability CFO network. His keen
interest in sustainability is important
tothe Board in driving Burberry’s climate
change strategy. Alan qualified as
achartered accountant with Deloitte.
Current appointments
• Senior Independent Non-Executive
Director and Chair of Audit and Risk
Committee, Haleon plc
Previous appointments
• Non-Executive Director and Chair
ofAudit Committee, Diageo plc
• Non-Executive Director and Chair
ofRemuneration Committee, Reckitt
Benckiser Group plc
• Non-Executive Director and
AuditCommittee Chair, Games
Workshop Group
• Chief Financial Officer, Tesco PLC
• Chief Financial Officer, Marks
&Spencer PLC
Male
Female
44%
56%
Gender
Ethnic minority
White
11%
89%
Ethnicity
British and Irish
American
Italian
56%
22%
22%
Nationality
Non-Executive Chair
Executive Director
Independent Non-
Executive Director
11%
22%
67%
Board
independence
0-3 Years
3-6 years
6+ years
45%
33%
22%
Tenure
Burberry Annual Report 2025/26112

Corporate Governance Statement | Executive Committee
EXECUTIVE COMMITTEE
Joshua Schulman
Chief Executive
Officer
Kate Ferry
Chief Financial
Officer
Charlotte Baldwin
Chief Information
Officer
Laura
Dubin-Wander
President Americas
Matteo Calonaci
Chief Operating and
Supply Chain Officer
Claudia Kim
President Asia
Pacific
Jonathan Kiman
Chief Marketing
Officer
Johnattan Leon
Chief Customer
Officer
Paul Price
Chief Product,
Merchandising and
Planning Officer
Alexandra
McCauley
Chief People Officer
Edward Rash
General Counsel
Frank van Loon
President EMEIA
Josie Zhang
President Greater
China
Changes to the Executive Committee during FY 2025/26
• Charlotte Baldwin joined the Committee on 31 March 2025
• Klaus Bierbrauer was a member of the Committee until 27 February 2026
• Matteo Calonaci joined the Committee on 1 December 2025
• Laura Dubin-Wander joined the Committee on 18 July 2025
• Claudia Kim joined the Committee on 18 July 2025
• Johnattan Leon joined the Committee on 1 December 2025
• Frank van Loon joined the Committee on 18 July 2025
• Josie Zhang joined the Committee on 18 July 2025
Burberry Annual Report 2025/26 113

Corporate Governance Statement | Corporate Governance Report
CORPORATE GOVERNANCE REPORT
UK Corporate Governance Code compliance
For FY 2025/26, Burberry has applied the principles of the UK Corporate Governance Code 2024 (the Code). The Board also considers
that theCompany complied in full with the provisions of the Code during the year, save for Provision 29 which will apply from FY 2026/27.
TheCode is published by the Financial Reporting Council (FRC) and can be found on its website: frc.org.uk.
This Corporate Governance Report provides an overview of the Board’s approach to governance and the work it has undertaken during
FY 2025/26. Details on how we have complied with the Code’s provisions and applied the Code’s principles can be found throughout
theAnnual Report. Key highlights of the Company’s compliance along with cross references to other sections of the Annual Report
aredetailed below.
How we apply the principles of the Code
Pages
Board leadership and company purpose
Chair’s introduction 108
Strategic Report 2 to 105
The role of the Board 122 to 123
Purpose, values and culture 116 to 117
Stakeholder and workforce engagement 38 to 40, 115
Division of responsibilities
Board composition 123, 131
Role of the Chair, Senior Independent Director, Non-Executive Directors and Company Secretary 123
Time commitment, external appointments, independence and tenure 128 to 130
Composition, succession and evaluation
Appointment to the Board and succession planning 124, 128
Skills, experience and knowledge of the Board 129
Board diversity 130 to 131
Board performance reviews 125 to 126
Audit, risk and internal control
Auditor independence and effectiveness of the audit 135
Principal and emerging risks 97 to 103
Risk management and internal control framework 97 to 103, 136
Fair, balanced and understandable assessment 135, 137
Viability Statement 104 to 105
Remuneration
Directors’ Remuneration Report 141 to 177
Directors’ Remuneration Policy 150 to 160
Engagement with stakeholders on remuneration 141 to 147, 160
Burberry Annual Report 2025/26114

Governance and responsibilities
The Board (supported by its Committees) is collectively
responsible for how Burberry is directed and controlled.
Itsresponsibilities include:
• Promoting Burberry’s long-term success
• Setting its strategic aims and values
• Supporting leadership in delivering strategy
• Supervising and constructively challenging leadership
ontheoperational running of the business
• Ensuring a framework of prudent and effective controls
• Reporting to shareholders on the Board’s stewardship
More information on the Company’s governance structure
canbefound on page 121.
Sustainability
Sustainability is an essential element of Burberry’s strategy
forwhich the Board is responsible. Accordingly, the Board
isalsoresponsible for ensuring its approach to sustainability
isintegrated into and implemented across the business, reflecting
the importance of these topics to the Group and society as a
whole. The governance framework of committees and advisory
forums (as shown in the diagram on page 121) provides regular
updates and key information to the Board to ensure that it is able
to make informed decisions. Sustainability is embedded into the
remit of the Committees where appropriate. During FY 2025/26,
the Board reviewed and approved the revised sustainability
targets, including the extension of our overall net zero target
fromFY 2039/40 to FY 2049/50, and our Climate Transition Plan,
which details how we plan to achieve our net zero ambition.
For more information on the Group’s environmental and social
priorities see pages 36 to 90.
Stakeholder engagement
At Burberry, we recognise that identifying our stakeholders and
engaging purposefully is vital for informed decision-making and
long-term success. In line with the Code, the Board prioritises
understanding the perspectives and values of our key stakeholders,
ensuring their voices are reflected in strategic decisions.
Examples of key decisions made by the Board during the year
andhow key stakeholder groups were considered can be found
on page 119. For more information on how we engage with
oursupply chain partners see pages 82 to 87.
Workforce engagement
The Board has chosen to engage with the workforce through
theformally constituted Global Workforce Advisory Forum, in
accordance with Code Provision 5. This forum facilitates direct
dialogue with employees, enabling their perspectives to shape
decision-making. The Board uses additional ways to understand
employee views, including Employee Engagement Surveys, site
visits and town halls. During the year, Board members visited
stores and operational sites worldwide, engaging directly with
colleagues to gain first-hand insights into local challenges
andopportunities.
As discussed on page 34, in FY 2025/26 the Group announced
atransformation programme incorporating the Organising for
Growth programme. Throughout this process, the Company
engaged proactively with employees before, during and following
statutory consultation periods across relevant jurisdictions.
Employee engagement included regular global, functional and
regional townhalls, featuring updates from the Chief People
Officer, and ongoing dialogue through the Workforce Advisory
Forum. These channels enabled employee perspectives to
becommunicated and considered, supporting transparency
andhelping to manage cultural and operational impacts
acrossthe business.
Shareholder engagement
Our Investor Relations team conducted over 510 meetings with more
than 290 investors during the financial year. In addition, ourChair,
Independent Non-Executive Directors, Executive Committee and
other members of senior management conducted in excess of
130 meetings with around 70 investors. This engagement included
presentations to investors and analysts following the release of
the Group’s quarterly, half- and full-year results (available on the
Group’s website, Burberryplc.com) and meetings with the majority
of the Group’s 20 largest investors. Topics discussed in investor
meetings included governance matters, such as remuneration
and capital allocation, as well as strategy, regional performance
and financial outlook. The team also arranged specific ESG
engagements with investors.
In March 2026, our Chair and Remuneration Committee Chair
wrote to our largest shareholders to assist with the development
of our 2026 Remuneration Policy. Further information on the
consultation process and the proposed changes can be found
onpage 141.
Our Investor Relations and Company Secretariat teams act as
centres for ongoing communication with shareholders, investors
and analysts. The Board receives regular updates about the views
of the Group’s major shareholders from these teams as well as
through direct contact.
Supplier engagement
Further information on how Burberry engages with its partners,
including suppliers, can be found on pages 38 to 40 and 82to87.
Transparency and accountability underpin our approach to
shareholder and wider stakeholder engagement. At the 2025
AGM, all resolutions were passed.
Further information on how Burberry has engaged with its key
stakeholder groups can be found on pages 38 to 40.
Corporate Governance Statement | Corporate Governance Report
Burberry Annual Report 2025/26 115

The Board is responsible for setting the tone at the top
of the organisation and for ensuring Burberry’s culture
is aligned with our purpose and values. A strong culture
that supports creativity, disciplined execution, ethical
conduct and responsible decision-making is essential
for Burberry’s long-term success.
How we monitor culture
We monitor culture through a structured framework that considers
inputs, signals and outcomes, enabling both forward-looking
insight and retrospective assessment.
Inputs include leadership behaviours, tone at the top, policies,
training and reward structures designed to reinforce
expectedbehaviours.
Signals include colleague engagement feedback, attrition trends,
speak-up activity, conduct metrics and customer indicators, all of
which are tracked over time to identify trends and emerging issues.
Outcomes include the impact of culture on business performance,
colleague conduct, risk management and stakeholder trust.
The Board’s assessment of culture is supported by four culture
indicators which we continued to apply during FY 2025/26,
supporting consistent monitoring and year-on-year trend analysis.
These are:
• Purpose and Belonging, reflecting colleague connection
toBurberry’s purpose, heritage and sense of inclusion
• Accountability and Performance, focusing on how
structures,ways of working and decision-making support
effectiveexecution
• Authentic Leadership, considering leadership behaviours,
integrity and alignment with Burberry’s values
• Talent at the Centre, reflecting how the organisation supports
the development and engagement of its people
These indicators are informed by a combination of quantitative
and qualitative data and are considered consistently over time
tosupport trend-based oversight.
Culture and stakeholder considerations
Further information on our reimagined purpose and values is set
out on page 11. Further information on how the Board engages
with the workforce and takes colleague considerations into account
when making decisions is set out in the section 172(1) statement
and stakeholder engagement section on pages 38 to 40. Further
information on our culture of belonging is set out on page 77.
MONITORING OUR CULTURE
Culture insight tools
The Board uses a range of mechanisms to gain deeper insight into Burberry’s culture and colleague sentiment. Feedback received
through each tool and forum is gathered and triangulated to help the Board assess how colleagues are feeling.
• These sessions, held partly in person and partly online, are attended by the Chair and
oneother Non-Executive Director to hear directly from colleagues from across the Group
onarange of topics relating to employee experience
Global Workforce
Advisory Forum
• Employee Resource Groups (ERGs) are voluntary, colleague-led groups that help foster a
diverse, inclusive culture within Burberry. Current ERGs include Disability and Neurodiversity
Inclusion, LGBTQIA+, Women in Tech and Working Parents and Carers
Employee Resource
Groups
• Engagement surveys provide valuable insights into colleague sentiment. By assessing overall
job satisfaction, perception of culture, leadership and organisational values, they help identify
areas for improvement. As part of our B:Heard Listening Strategy, Burberry hosts two surveys
annually: an Engagement Survey and a Pulse Survey
Colleague surveys
• We encourage colleagues at all levels to ask questions during town halls, and follow up
inwriting on any unanswered themes. If these are not answered live, we respond in writing
following the event. This open feedback loop fosters transparency, builds trust and keeps
leadership connected to colleague perspectives
Global town hall
feedback
• We leverage our internal communication platforms to measure engagement, reach and
cultural alignment. Insights from these platforms help refine our communication strategies,
enhance transparency and foster a culture of growth and open communication across
theorganisation
Internal communications
platforms
• We use our learning platform, Go1, to assess and strengthen a culture of continuous
development. We analyse learning trends through participation rates, popular topics and
collaboration levels that reveal how well our culture supports growth, innovation and inclusivity
Learning platforms
Corporate Governance Statement | Corporate Governance Report
Burberry Annual Report 2025/26116

Progress against our culture indicators
Purpose and Belonging
Colleague sentiment strengthened during FY 2025/26.
Responses to the annual Employee Engagement Survey
demonstrated an increase in belonging, reflecting positive
reception of our reimagined purpose and values and enhanced
clarity around our Company identity.
New colleague forums, including the UK Corporate Colleague
Forum, Colleague Engagement Champions and our global ERGs,
have broadened engagement. These forums ensure that our
colleagues’ voices remain central during a period of strategic
change. Colleagues expressed appreciation for the greater
transparency, especially during the Organising for Growth
programme which led to an improved understanding of the
Burberry Forward strategy, supported by initiatives such as the
#BurberryExplained campaign, an increased number of global
town halls and targeted listening sessions with key teams.
Accountability and Performance
Following the 2024 Employee Engagement Survey, focused
actions were proposed on decision-making, role clarity and
accountability in response to colleague feedback. The Executive
Committee implemented a cross-functional review, which
identified six themes: speed; communication; outcome focus;
regional versus central impact; consultation and accountability;
and customer centricity. These were subsequently shared with
colleagues and actions were proposed. The 2025 Employee
Engagement Survey showed a material improvement in
decision-making, providing evidence of early progress. Steps
taken to improve organisational clarity following Organising
forGrowth were also shared, including leadership alignment
sessions designed to equip managers to support new
waysofworking.
Authentic Leadership
Management introduced several leadership initiatives under
theYear of Leading Forward programme, including the B:Leaders
Framework, external leadership speakers, peer coaching circles
across multiple regions and extended peer coaching for newly
appointed Vice Presidents. As a result, colleague sentiment with
respect to perceptions of leadership has increased, reflected
inimproved leadership role modelling scores.
We also strengthened leadership communication through evolved
Leaders’ Briefs, the weekly Leaders Look Ahead update and
theLeadership Edition interview video series, which increased
visibility of Executive Committee members. These initiatives
contributed to the development of leadership capabilities
andthereinforcement of the expected behaviours embedded
withinour values.
Talent at the Centre
Management actions to advance an internal-first approach
totalent gave colleagues clear guidance on what growth means
atBurberry, encompassing skills development, influence and
newleadership opportunities. This was supported by refreshed
resources across three pillars: Learner Mindset, Career
Clarityand CareerTools.
Internal mobility data indicated that a meaningful proportion
ofcolleagues experienced a formal career move during the year,
supporting career progression despite a period of organisational
contraction. Strong engagement with the on-demand learning
platform Go1, alongside a significant increase in internal
apprenticeship completions and expanded strategic talent
planning across all functions and regions, further demonstrated
improvements in career visibility and capability building.
Conclusions from monitoring culture
duringthe year
Based on the information considered and engagement undertaken,
including trend analysis against our established culture indicators,
insights indicate that Burberry’s culture continues tosupport
theCompany’s strategic objectives and brand values during
aperiodof transformation.
A shift in cultural sentiment was observed compared with
FY 2024/25. While that year was characterised by leadership
change, strategic reset and a broadly neutral cultural backdrop
during transition, colleague feedback in FY 2025/26 suggested
increasing confidence in Burberry’s strategic direction.
Feedback reflected positive engagement with the refreshed
strategy across the organisation. This progression from
stabilisation towards confidence was viewed as an important
indicator of cultural momentum, alongside an understanding
ofthe need to sustain progress through consistent leadership
andeffective execution.
The importance of clear and effective leadership communication
and decision-making processes was also highlighted as a key
enabler of change, accountability and cultural consistency across
our diverse global organisation. These insights continue to inform
our people and governance priorities.
Colleague feedback suggested that our reimagined purpose
andvalues, reflected through the Purpose and Belonging and
Authentic Leadership culture indicators, align with our colleagues’
perception of Burberry’s heritage and authenticity as a British
luxury brand. Feedback indicated that colleagues recognise
theCompany’s intention to reconnect with its distinctive identity,
which suggests cultural coherence during a period of change.
Weplan to continue to monitor this as perceptions evolve over time.
Corporate Governance Statement | Corporate Governance Report
Burberry Annual Report 2025/26 117

Area of focus Outcome
Strategy and operations
• Consider the re-articulation of Burberry’s purpose and values
• Review proposals to implement a comprehensive
coordinated customer strategy
• Review progress against implementation of the four pillars
under the Burberry Forward strategic plan
• Consider the proposed transformation programme, including
organisational design and operational improvements
• Approval of Burberry’s reimagined purpose and values
• Approval of the operational and customer priorities, including
product evolution, customer strategy and marketing plan
• Questioning, challenging and providing feedback to the
leadership team and supporting the programmes undertaken
Finance
• Review of the FY 2025/26 budget and review draft
FY 2026/27 budget and four-year plan forecasts
• Review and scrutinise full- and half-year financial results
andtrading announcements
• Review of capital allocation and financing
• Review financial aspects of the transformation programme,
including cost savings and operational expenditure
• Approval of the budget balancing investment for growth and
consideration of the trading environment and geo-political factors
• Approval of Annual Report and Financial Statements
• Confirmation of the decision to suspend dividend payments
for FY 2024/25 and in May 2026 confirming no dividend
payment for FY 2025/26
• Approval of the transformation programme, investing forgrowth
underpinned by cost savings and operationaldiscipline
Culture and colleagues
• Assess and monitor culture through the Employee
Engagement Survey, the Global Workforce Advisory Forum
and various metrics
• Review progress against the diversity, equity and
inclusionstrategy
• Consider people priorities for FY 2025/26
• Review the UK’s gender and ethnicity pay gap for 2025/26
• Review progress under the Reignite a High-performance
Culture pillar of the Burberry Forward transformation
programme and support further initiatives
• Support management’s plans to evolve diversity, equity
andinclusion initiatives
Corporate responsibility
• Consider proposals for charitable and community activities
and investment for FY 2025/26
• Review Burberry’s public sustainability targets and
commitments to ensure alignment with external standards,
peers and the Burberry Forward strategy
• Review of proposed environmental priorities, further
toupdates from the Sustainability Committee
• Approval of donation of £2.9 million for social and community
causes worldwide
• Approval of revised sustainability targets, including our overall
net zero target and Climate Transition Plan
• Approval of the Company’s Modern Slavery Statement
Risk
• Review of the Group’s risk appetite
• Review of emerging and principal risks
• Approval of tolerance levels of principal risks
• Approval of the Group’s risk appetite
• Endorsement of IT resilience and cybersecurity measures
Governance
• Conduct the annual Board performance review
• Review of enhanced responsibilities under Provision 29
ofthe UK Corporate Governance Code 2024
• Review of investor sentiment
• Engage with employees, including through attendance
attheGlobal Workforce Advisory Forum
• Confirmation that governance processes are
operatingeffectively
• Support for management’s proposed approach to compliance
with the new Provision 29 requirements in FY 2026/27
• Agree the key areas of focus arising from the Board
performance review
• Board insight and awareness of colleague sentiment
PRINCIPAL AREAS OF FOCUS
FORTHEBOARD DURING FY 2025/26
Corporate Governance Statement | Corporate Governance Report
Burberry Annual Report 2025/26118

As explained in the Section 172 statement on page
38,the Board took the views of keystakeholders
intoaccount when making decisions and conducting
Board business. Three of the key decisions taken
bythe Board during FY 2025/26 are set out below,
with an explanation of the stakeholder engagement
methods used and how the information gathered from
stakeholders informed the Board’s decisions.
Approve reimagined purpose and values
How the Board reached the decision
The Board reflected on the brand’s legacy and the enduring brand
principles which have transcended Burberry’s development and
decided that a re-articulation of Burberry’s purpose and values
would provide a clearer link with Burberry’s original purpose
andcore belief.
Likely long-term consequences of the decision
The Board considered that re-articulating Burberry’s purpose
andvalues would support Burberry’s growth and viability
inthelong term.
How stakeholder interests were taken into account
Customers: Providing a clearer understanding of what Burberry
stands for and the brand’s enduring principles in order to reignite
desire and create affinity with thebrand.
People: Clear purpose and values resonate with Burberry
colleagues and increase a sense of belonging.
Shareholders: Protecting Burberry’s legacy is in shareholders’
interests to preserve the value of the brand for the long-term
financial health of the Group.
Partners: Reimagining Burberry’s purpose and values is in the
best interests of our partners because it helps promote a clear
culture, align decision-making with strategy and support
sustainable long-term value creation.
Approve revised sustainability targets under
the Burberry Beyond strategy and the Climate
Transition Plan
How the Board reached the decision
The Board of Directors conducted an in-depth review of the
current sustainability targets, including our overall net zero
target,and considered whether these should be amended to take
intoaccount market expectations and developments that have
ledtoagreater understanding in this area, including the need
forscience-based targets. The Board’s deliberations included
areview of progress to date, technological advances in materials
and targets set by luxury fashion peers. In reviewing the Climate
Transition Plan, the Board considered the impact of climate
changeon Burberry’s supply chain and colleagues, and Burberry’s
strategy for engaging partners in delivering the objectives of
theClimate Transition Plan. The sustainability targets and further
detail on the Climate Transition Plan are set out in the Strategic
report on pages 46 to 75.
Corporate Governance Statement | Corporate Governance Report
KEY DECISIONS DURING FY 2025/26
Likely long-term consequences of the decision
Implementation of sustainability measures is expected to support
long-term viability, encourage growth and have a positive
financial impact in the long term.
How stakeholder interests were taken into account
Customers: The Board considered the importance of provenance
and authenticity to customers and how this influences their
alignment with brand values.
People: The Burberry Beyond strategy and the sustainability
goalswhich support it encourage a culture of belonging
amongstemployees.
Shareholders: The Board’s view was that robust and realistic
sustainability targets, aligned to commercial and financial goals,
would promote the sustainable performance of the Group for
thelong term.
Partners: The Board took account of Burberry’s strategy
forengaging partners (including suppliers; trade associations,
industry and business partnerships; government, public sector
and civil society; and creative and education partners) in delivering
the objectives of the Climate Transition Plan.
Communities: When considering the revised sustainability targets
and Climate Transition Plan, the Board considered the impact
ofBurberry’s operations on communities.
Approve the Organising for Growth
transformation programme
How the Board reached the decision
The Board considered the immediate actions needed to reset
thesize of the organisation and cost structure to support the
business in the near future, while also supporting the Burberry
Forward strategic refresh, our plans to put the customer
atthecentre and support growth.
Likely long-term consequences of the decision
The Board considered how the new organisational model would
support investment for growth in the longer term.
How stakeholder interests were taken into account
Customers: Enhancements to the operational model would
improve product availability and delivery.
People: After a period of change, the new organisational model
would safeguard the business. Colleagues understand the need
for change and this has helped to engage teams in rebuilding
thebrand.
Shareholders: Resetting the cost structure of the business
intheshort-term would help return the business to sustainable
and profitable growth, supporting the long-term financial health
of the Group.
Partners: Securing Burberry’s long-term viability helps support
the long-term success of our business partners and suppliers.
Key stakeholders
Customers Communities
Shareholders Government
People Partners
Burberry Annual Report 2025/26 119

Corporate Governance Statement | Corporate Governance Report
Board meetings and attendance
The Board held six formal meetings during the financial year,
including an in-depth strategy session. If any Director is unable
toattend a meeting, they are given the opportunity to provide
feedback on the accompanying material in advance of the meeting.
Details of attendance at Board and Committee meetings can
befound below.
During the year, the Board and Committee agendas were shaped
to ensure that discussion was focused on our key strategies and
responsibilities, as well as reviews of significant issues arising
during the year, such as changing macroeconomic and
geopolitical conditions.
The Group’s ongoing performance against strategic priorities
isreviewed at all scheduled meetings.
The Chair and Non-Executive Directors held closed sessions
without management present at several Board meetings.
Throughout the year, Directors spent time meeting investors and
interviewing candidates for both executive and non-executive
roles. In addition, Directors undertook store and site visits and
attended our fashion shows, town halls, brand events, training
sessions and meetings of the Global Workforce Advisory Forum.
Productivity
The Company continues to demonstrate and develop improving
levels of productivity, owing to strong human capital, training and
development programmes, and focus on elevating the customer
experience throughout our distribution and retail networks.
Further information about these aspects of the business is provided
on pages 17 to 24 and 33 to 35.
Tax governance framework and transparency
The CFO is responsible for the Group Tax Strategy, the
effectiveness of tax risk management, tax processes and
transparency of disclosures. The strategy is implemented by
theglobal Tax and Trade Compliance teams with the assistance
of the Finance Leadership team. Compliance with the Group Tax
Strategy is reviewed on an ongoing basis as part of the regular
financial planning cycle. The Audit Committee is responsible
forreviewing the Group Tax Strategy at least once a year and
significant tax matters as they arise.
Directors’ attendance at Board and Committee meetings during FY 2025/26
The attendance record below shows total eligible meetings.
Board Nomination Audit Remuneration
Gerry Murphy 6/6 4/4 – –
Joshua Schulman 6/6 – – –
Kate Ferry 6/6 – – –
Orna NíChionna 6/6 4/4 – 6/6
Fabiola Arredondo
1
2/2 1/1 – 1/1
Alessandra Cozzani 6/6 4/4 4/4 –
Sam Fischer
1
2/2 1/1 – 1/1
Ron Frasch 6/6 4/4 4/4 6/6
Danuta Gray 6/6 4/4 4/4 6/6
Stella King 6/6 4/4 – –
Antoine de Saint-Affrique
1,2
2/2 0/1 1/1 –
Alan Stewart 6/6 4/4 4/4 6/6
1. Fabiola Arredondo, Sam Fischer and Antoine de Saint-Affrique retired from the Board following the AGM on 16 July 2025.
2. Antoine de Saint-Affrique was unable to attend a Nomination Committee meeting due to an unavoidable diary clash.
The Group is committed to acting with integrity and
transparencyon all tax matters and complying fully with
applicable tax laws, having regard to international standards
andguidance on tax practice and tax reporting. The Group will
only engage in responsible tax planning aligned with genuine
commercial economic activities. We will not use tax structures
orundertake artificial transactions, the sole purpose of which is
tocreate a contrived tax result. For example, we do not participate
in transactions with parties based in tax haven jurisdictions
whenthe transactions are not in the ordinary course of Group
trading business or which could be perceived as artificially
transferring value to low tax jurisdictions.
Further information regarding the Group Tax Strategy can
befound on Burberryplc.com.
Share capital
Information about the Company’s share capital, including
substantial shareholdings, can be found in the Directors’
Reporton page 178.
Burberry Annual Report 2025/26120

Governance structure at Burberry
The diagram below illustrates Burberry’s governance structure, flowing from the Board, which comprises
Committeesand advisory forums. Each has a defined scope, covering one or more of our key Environmental,
Socialand Governance topics, and has a formalised reporting line. This structure ensures important matters are
monitored by the right people and establishes an information flow to the Board, enabling it to make informed
decisions and deliver Burberry’s strategy. Further information on the role of the Board and its principal
Committeescan be foundonpage 122.
GOVERNANCE STRUCTURE
ANDDIVISIONOFRESPONSIBILITIES
Burberry Group plc Board
CEO Nomination
Committee
Audit
Committee
Remuneration
Committee
Global Workforce
Advisory Forum
Executive
Committee
Sustainability
Committee
Group Treasury
Committee
Ethical Assurance
Sub-Committee
Risk
Committee
Ethics
Committee
Cultural Advisory
Council
Fraud Risk
Management Forum
Cybersecurity
Steering Group
Global Health and
Safety Committee
Environmental, Social and Governance topics covered
Environment Ethics
Finance and Risk Legal/Compliance
People Communities
Key
Decision-making
Advisory
Corporate Governance Statement | DivisionofResponsibilities
Burberry Annual Report 2025/26 121

The Board is responsible for promoting Burberry’s long-term sustainable success. This is achieved through the establishment of an
effective governance framework, which the Board oversees, and keeping the interests of stakeholders at the fore in decision-making.
Information flows up and down the governance framework to ensure that all decision-making is well-informed, transparent and
balanced.
The Board establishes the Group’s purpose and values, and sets the Group’s strategy, including sustainability and climate goals,
ensuring alignment with our culture and overseeing its implementation by management. TheBoardis also responsible for oversight
ofthe Group’s internal control and risk management, including the Group’s risk appetite.
Specific matters have been reserved for approval by the Board. Details of the Board’s key areas of focus during FY 2025/26 can be
found on page 118, and a full schedule of matters reserved for the Board’s decision is available in the Corporate Governance section
ofBurberryplc.com. Biographies of the members of the Board can be found on pages 109 to 112, and the individual roles of Directors
and the division of responsibilities between them can be found on page 123.
The Board has established Committees to assist with exercising its authority.
The Board
The Board delegates the day-to-day responsibility for running the Group to the CEO, who is responsible for all commercial, operational,
risk and financial elements of the business. The CEO is also responsible for the management and development of the strategic
direction of the Group, for consideration and approval by the Board.
CEO
The Executive Committee assists the CEO in implementing the strategy as approved by the Board. Executive Committee members are
invited, as appropriate, to Board, Board Committee and strategy meetings to inform and update the Board on their areas ofresponsibility.
Executive Committee
The Committees may engage third-party consultants and independent professional advisors. They may also call upon
other Group resources to assist them in discharging their respective responsibilities. In addition to the Committee
members and the Company Secretary, external advisors and, on occasion, other Directors and members of our senior
management team attend Committee meetings at the invitation of the Chair of the relevant Committee.
The terms of reference for the Nomination Committee, Audit Committee and Remuneration Committee can be viewed
inthe Corporate Governance section of Burberryplc.com.
Monitors the integrity of Financial
Statements, including disclosures
associated with the TCFD, and
provides assurance to the Board
thatthe Group’s risk management
and internal control framework are
appropriate and regularly reviewed.
Reviews the Internal Audit plan and
oversees the work of the external
auditor, approving their remuneration
and recommending their appointment
on behalf of the Board.
The Audit Committee is supported
bythe Risk Committee, the
EthicsCommittee and the Group
TreasuryCommittee.
The Audit Committee Report can
befound on pages 132 to 140.
Audit Committee
Chaired by Alan Stewart
Determines the policy for Executive
Director remuneration, aligning with
Burberry’s long-term strategic goals,
and having regard to the views
ofshareholders and stakeholders.
Sets the remuneration for the
Chair,Executive Directors and
seniormanagement.
Oversees the wider employee
rewardpolicies.
The Directors’ Remuneration Report
can be found on pages 141 to 177.
Remuneration Committee
Chaired by Danuta Gray
Reviews the composition of
theBoard to ensure it remains
appropriate, so the Board is best
placed to fulfil its role. Ensures
plansare in place for the orderly
succession of both Board and senior
leadership positions. Oversees the
formal, rigorous and transparent
procedure for the appointment of
new Directors, keeping in mind the
importance of promoting diversity,
inclusion and equal opportunities
while balancing skills and experience,
and ensuring alignment to purpose,
values and culture.
The Nomination Committee Report
can be found on pages 127 to 131.
Nomination Committee
Chaired by Gerry Murphy
Roles and responsibilities
Corporate Governance Statement | DivisionofResponsibilities
Burberry Annual Report 2025/26122

Board roles and the division
ofresponsibilities
Our Board currently comprises nine members: the Chair, the CEO,
the CFO and six independent Non-Executive Directors who are
experienced and influential individuals, drawn from a wide range
of industries and backgrounds with the skills to promote the
long-term sustainable success of the Group. The Board has
determined that all Non-Executive Directors are independent,
apart from the Chair who was considered to be independent
onappointment.
Directors’ biographies, tenures, key skills and experience
andexternal appointments are set out on pages 109 to 112.
Theassessment of Board skills can be found on page 129.
All Directors are appointed to the Board for an initial fixed
three-year term, subject to annual re-election by shareholders
atthe Company’s AGM. In accordance with the Code, all Directors
will retire and offer themselves for re-election at the 2026 AGM.
To ensure the Board performs effectively, there is a clear division
of responsibilities between the leadership of the Board and the
executive leadership. The roles of the Chair, CEO and Senior
Independent Director are agreed by the Board and are available
to view in the Corporate Governance section of Burberryplc.com.
Our Chair
• Responsible for the Board’s overall effectiveness in
directingBurberry
• Chairing Board meetings, Nomination Committee meetings
andthe AGM, setting the Board agenda and ensuring Directors
receive accurate, timely and clear information
• Ensuring there is effective communication between the Board,
management, colleagues, shareholders and the Group’s
widerstakeholders
• Promoting a culture of openness and constructive
debate,andfacilitating effective contributions from all
Non-ExecutiveDirectors
• Overseeing the annual Board effectiveness review and
addressing any subsequent actions
• Promoting the highest standards of corporate governance
• Ensuring the views of stakeholders are taken into account
when making decisions
Our Senior Independent Director
• Acting as a sounding board for the Chair
• Acting as an intermediary for the other Directors, where necessary
• Chairing meetings in the absence of the Chair
• Being available to shareholders and stakeholders if they have
any concerns which they have been unable to resolve through
normal channels
• Together with the Non-Executive Directors, assessing the
performance of the Chair on an annual basis
• Leading the search and appointment process and
recommendation to the Board of a new Chair, if necessary
Our Non-Executive Directors
• Providing effective and constructive challenge to the Board and
scrutinising the performance of management against agreed
performance objectives
• Leading the appointment process for Executive Directors
• Assisting in the development and approval of the Group’s strategy
• Reviewing Group financial information and ensuring there are
effective systems of governance, risk management and internal
controls in place
• Ensuring there is regular, open and constructive dialogue with
shareholders
• Offering specialist knowledge to the Board
Our CEO
• Day-to-day management of the Group and leading the
Executive Committee
• Responsible for all commercial, operational, risk and financial
elements of the Group
• Developing the Group’s strategic direction and implementing
the agreed strategy, as approved by the Board
• Ensuring effective communication and information flows
totheBoard and the Chair
• Representing the Group to external stakeholders
• Responsible for the oversight of the following key functions:
Design, Marketing, Digital, Merchandising and Planning, Supply
Chain Operations, Customers, Corporate Affairs, Human
Resources, Strategy, Global Commercial, Corporate
Communications and IT
• Responsible for oversight of Burberry’s sustainability agenda
and climate goals
Our CFO
• Supporting the CEO in developing the Group’s strategy and
itsimplementation
• Overseeing the global Finance and Business Services functions
and developing the Group’s Capital Allocation Framework
• Responsible for establishing financial planning and maintaining
adequate internal controls over financial reporting
• Representing the Group to external stakeholders
• Responsible for the oversight of the following key functions:
Investor Relations, Internal Audit and Risk Management,
Business Continuity, Burberry Business Services, Finance,
Insurance, Tax, Treasury and Trade Compliance
Our Company Secretary
• Providing advice and support to the Chair and all Directors
• Ensuring the Board receives high-quality information and
resources in a timely manner so that the Board can operate
effectively at meetings and carry out its duties
• Assisting the Chair and Committee Chairs in setting the agenda
for Board and Committee meetings
• Advising and keeping the Board up to date with all matters
ofcorporate governance through regular papers and updates
at meetings
• Facilitating the induction programme for new Directors and,
together with the Chair, assessing ongoing training needs for
all Directors
Corporate Governance Statement | DivisionofResponsibilities
Burberry Annual Report 2025/26 123

Time allocation
Executive Directors
Our Board’s Executive Directors are permitted to hold one external
non-executive directorship. Joshua Schulman is a Director and
Trustee of The Elton John AIDS Foundation, a charitable foundation.
Non-Executive Directors
Each of our Non-Executive Directors has a letter of appointment
which sets out the terms and conditions of their directorship.
TheNon-Executive Directors are expected to devote the time
necessary to perform their duties properly. This is expected to be
approximately 20 days each year for basic duties. The Chair and
Senior Independent Director are expected to spend additional
time over and above this to carry out the extra responsibilities
their roles entail. A summary of these roles can be found on
page123 and full descriptions can be found in the Corporate
Governance section of the Group’s website, Burberryplc.com.
The Board has noted changes to Non-Executive Directors’
external appointments during the year and confirms that they
werenot perceived to impact their responsibilities to the Company.
TheBoard also considered existing appointments and was content
that all Directors continue to have sufficient time to undertake
their roles at Burberry. Please see pages 129 to 130 for further
information on Directors’ time commitments.
The Board considers that the Chair and all Non-Executive
Directors have fulfilled their required time commitment during
FY 2025/26.
Independence of Non-Executive Directors
Each year, in accordance with its terms of reference, the
Nomination Committee reviews the independence of the
Non-Executive Directors (excluding the Chair), taking into account
a range of factors, including those set out in Provision 10 of the
UK Corporate Governance Code.
Please see page 130 for further information on the independence
assessment performed by the Nomination Committee.
Induction and training
The Company Secretary assists the Chair in designing and
facilitating a formal induction programme for new Directors and
their ongoing training. Each newly appointed Director receives
aformal and tailored induction programme to enable them to
function effectively as quickly as possible, while building a deep
understanding of the business. Each induction typically consists
of meetings with both Executive and Non-Executive Directors and
briefings from senior managers across our key business areas
and operations. In addition, Non-Executive Directors are provided
with opportunities to visit key stores, markets and facilities.
Thisincludes visits to our various operating facilities in the UK
and in their country or territory of residence.
Following the initial induction for Non-Executive Directors,
anunderstanding of the business is developed through ongoing
meetings and engagements as appropriate. In June 2025 Orna
NíChionna and Stella King travelled to Mainland China visiting
stores and engaging with colleagues to gain a greater insight
intothis market.
The Chair considers the training needs of individual Directors on
an ongoing basis, and the Board has direct access to the advice
and services of the Company Secretary. To carry out their duties,
Directors may also obtain independent professional advice, if
necessary, at the Group’s expense. The Board received training
on the use of AI in November 2025 and, in February 2026, the
Board undertook carbon literacy training to support the review
ofBurberry’s sustainability targets and Climate Transition Plan.
Managing conflicts of interest
All Directors have a duty under the Companies Act 2006 to avoid
a situation in which they have, or could have, a direct or indirect
conflict of interest or possible conflict of interest with the
Company and/or the Group.
Under the Company’s Articles of Association, the Board has the
authority to approve situational conflicts of interest. It has
adopted procedures to manage and, where appropriate, approve
such conflicts.
Authorisations granted by the Board are recorded by the
Company Secretary in a register and are noted by the Board at its
next meeting. A review of situational conflicts that have been
authorised is undertaken by the Board annually.
Following the last review, the Board concluded that the potential
conflicts had been appropriately authorised, that no
circumstances existed which would necessitate that any prior
authorisation be revoked or amended, and that the authorisation
process continued to operate effectively.
Corporate Governance Statement | DivisionofResponsibilities
Burberry Annual Report 2025/26124

Board evaluation
Evaluating our performance
The Board undertakes a formal annual review of its effectiveness,
to help identify opportunities to improve and enhance its own
performance and that of the Group. The evaluation process is
ledby the Chair and includes a review of the effectiveness of the
Board as a whole, the Board’s Committees and each individual
Director. Every three years the review is facilitated externally
inaccordance with the UK Corporate Governance Code. The last
externally facilitated review was completed for FY 2023/24.
During the financial year, the Board undertook an internal
effectiveness review facilitated by BoardOutlook which provides
a customisable questionnaire-based framework designed to use
data and analytics to identify both strengths and opportunities for
improvement. The questionnaires covered governance practices,
composition, culture, succession planning, risk management and
the quality of Board processes and papers. They were finalised by
the Chair and the Chairs of the Nomination, Audit andRemuneration
Committees, supported by the Company Secretary. Board members,
members of the Executive and senior management team who
regularly attend Board and/or Board Committee meetings were
invited to complete the questionnaires. In addition, the Chair met
with each director to consider individual performance and the
Senior Independent Director held a meeting of the Non-Executive
Directors, without the Chair being present, to review his
performance during the year.
COMPOSITION, SUCCESSION
ANDEVALUATION
The evaluation confirmed that the Board continues to operate
effectively. The Board’s culture was rated highly with particular
strengths in mutual trust and respect, director preparedness and
the ability to move rapidly when required. The Chair’s leadership
was rated strongly, with the working relationship with the CEO
and the quality of Board engagement highlighted as key strengths.
Directors expressed strong confidence in the CEO and executive
team’s performance, noting material progress in short-term financial
results, stakeholder communication and strategic execution.
The Board’s involvement in strategy was also well regarded.
Thereis strong alignment behind the current strategic direction
and broad confidence in the clarity and execution of Burberry
Forward. Sustainability oversight was also rated as a strength
with the Board supporting the organisation’s sustainability
strategy and recognising the quality of the programme in place.
The review identified a number of areas for potential development
and action during FY 2026/27 which have been agreed by the
Board and are set out below. Progress against these areas
offocus will be monitored during FY 2026/27.
Having discussed the results of the review, the Board confirmed
its view that it continues to operate effectively within an inclusive
and transparent environment and that the Nomination, Audit
andRemuneration Committees continue to operate well and
toprovide effective support to the Board in carrying out its duties.
Further information about the effectiveness evaluations of each
ofthe Committees and of individual Directors conducted during
the year can be found on pages 127, 132 and 145.
Areas of focus for FY 2026/27
Based on the feedback received during the assessment process, the Board agreed on the following areas of focus, which will be
monitored during the year.
Area for development Action
Digital transformation and
innovation
The Board will strengthen its oversight of digital strategy, technology and innovation and consider
how best to enhance digital expertise at Board level
Long-term strategic balance As the business transitions from its initial stabilisation phase to focus on sustainable growth,
theBoard will ensure dedicated time is given to longer-horizon strategic questions, including
customer and brand strategy and the balance between short- and long-term priorities
Board composition and
succession
The Board recognises the need to refresh its composition to reflect the evolving needs of Burberry.
Board recruitment will prioritise digital expertise, global consumer brand experience, CEO level
leadership and Chair succession planning
Risk oversight The Board will expand its risk discussions to include a more structured consideration of emerging
and longer-term risks and will explore opportunities to strengthen the mechanisms by which
management perspectives on material risks are surfaced
Board processes The Board will undertake a review of its papers and processes with a view to enhancing conciseness
and incorporating AI tools where appropriate to improve efficiency and to increase Directors’
exposure to emerging AI applications
Corporate Governance Statement | Composition, Succession andEvaluation
Burberry Annual Report 2025/26 125

Progress update on focus areas identified following FY 2024/25 Board effectiveness review
Area for development Action
Strategy and operations
Further embed leading indicators and risk
dashboards into the Board’s ways of working
to strengthen oversight of commercial
andoperational performance, enhance
decision-making and support the delivery
ofshort- and long-term strategic goals
The Board receives monthly performance dashboards covering trading and other
key metrics. In addition, a strategy delivery dashboard tracking KPIs for Burberry
Forward is shared with the Board on a quarterly basis.
Enhance monitoring of digital transformation,
disruption and innovation
The Board has received several updates on the Group’s e-commerce strategy and
long-term digital ambition to support it in monitoring the delivery of the Group’s
digital transformation agenda.
Enhance monitoring of supply chain
efficiency, resilience and geopolitical risk
Progress on the strategy to drive supply chain efficiency and impact on
marginthrough reviewing country of origin and internal manufacturing risks
andopportunities was reviewed in July 2025. A further update on plans to evolve
thesupply chain operating model was received in February 2026. The Board also
received a number of updates during the first half of FY 2025/26 regarding the
impact of US tariffs and potential strategic sourcing adjustments.
Enhance the Board’s awareness of current
and evolving competitive landscape and
consumer trends
During its annual strategy meeting, the Board received an update on the status
ofthe luxury industry and customer perspectives from an external expert.
People and resources
Undertake a thorough review of Board
members’ collective critical skills and
experience relative to Burberry’s future
business needs to optimise Board
successionplanning
During FY 2025/26, the Nomination Committee led a review of the skills
considered most critical to Burberry as detailed on page 129.
Board ways of working
Review of Board processes and
paperstosupport better oversight
anddecision-making
The annual Board agenda has been reviewed with additional items introduced
where necessary to ensure that Board meetings are focused on discussing key
strategic topics.
Corporate Governance Statement | Composition, Succession andEvaluation
Burberry Annual Report 2025/26126

NOMINATION COMMITTEE REPORT
Dear Shareholder,
On behalf of the Nomination Committee (the Committee), I am
pleased to present this report which sets out how the Committee
has discharged its responsibilities during the year. It covers Board
composition (see pages 128 to 131), Board succession planning
(see page 128), Directors’ time commitments (see pages 129
to130) and the approach we have taken to reviewing Board
members’ collective skills as explained below.
The Committee has remained focused on the evolving needs
ofthe business in support of the Burberry Forward strategic plan.
Fostering and sustaining a high-performance culture by ensuring
the Board, Executive Committee and senior management have
theappropriate balance of skills and diversity is integral to our
strategic ambitions. We have also spent time discussing the
evolution of the Executive Committee and were supportive
ofJosh’s proposals to appoint the Regional Presidents to the
Executive Committee and to create the Chief Operating and
Supply Chain Officer and Chief Customer Officer roles.
Orna NíChionna, our Senior Independent Director, has also been
leading a succession planning process for my role as Chair in view
of the length of my tenure. Further information will be included
inthe FY 2026/27 report.
Review of Board skills
Following the Board effectiveness review undertaken in respect
of FY 2024/25, a key area of focus for the Nomination Committee
this year has been to conduct a thorough review of Board members’
skills, experience and expertise assessed against Burberry’s
strategic priorities and future business needs.
This review resulted in a clear and structured matrix, setting
outthe collective skills and capabilities required to support the
delivery of Burberry Forward and demonstrating how those skills
are balanced across the Board. Further details on the process
areprovided on page 129.
The outcomes of the review will strengthen the Committee’s
approach to Board composition and succession planning,
ensuring that the Board remains well positioned to support
Burberry’s strategy.
The Committee remains committed to ensuring Burberry has a
balanced Board which supports the Company’s long-term success.
Committee effectiveness
The Committee’s annual performance review confirmed that the
Committee operates effectively and took account of the long-term
needs of the business in its approach to Board succession
planning during the year.
Gerry Murphy
Chair, Nomination Committee
Gerry Murphy
Chair, Nomination Committee
Areas of focus during FY 2025/26
• Board composition and succession planning
• Review of Board skills
• Annual review of corporate
governancerequirements
“The Committee has
remained focused
ontheevolving needs
ofthebusiness in support
ofthe Burberry Forward
strategic plan.”
Corporate Governance Statement | Nomination Committee Report
Burberry Annual Report 2025/26 127

Corporate Governance Statement | Nomination Committee Report
Summary of meetings
The Committee met four times during FY 2025/26, including
unscheduled meetings called to deal with ongoing processes and
ad hoc matters as they arose. Details of attendance at Committee
meetings are set out above.
Committee role and responsibilities
As set out in the terms of reference, which are available
onBurberryplc.com, the Committee has responsibilities across
three main areas:
Board composition
• Reviews the structure, size and composition of the Board and
its Committees to ensure the right balance of skills, knowledge,
experience, diversity and independence
• Identifies and makes recommendations to the Board on
suitable candidates to fill Board vacancies
Board and executive succession planning
• Develops succession plans to ensure Board membership
isrefreshed to meet the needs of the Company
• Oversees the development of a diverse succession pipeline
forthe Executive Committee and key senior management roles,
in line with the approach to ensure talent is at the centre
oftheCompany
Corporate governance
• Considers the independence and time commitments
ofNon-Executive Directors
• Reviews the Board Composition and Diversity Principles
toensure they remain fit for purpose
Board composition and succession planning
Having the right blend of skills, knowledge and experience
intheboardroom ensures an effective Board. Diverse and fresh
perspectives contribute to well-rounded discussions and lead
toeffective decision-making.
During the year, the Committee undertook a comprehensive
review of the Board’s collective critical skills and experience,
assessed against Burberry’s future strategic and business needs,
to guide, inform and support effective Board succession planning.
Further details of the review process and key considerations
areset out on page 129, as well as the outcome of this review.
In line with the Board Composition and Diversity Principles,
allBoard appointments will continue to be made on merit and
objective criteria. Our approach includes:
• Ensuring the search pool includes candidates from diverse
backgrounds with experience and insights relevant to the
Group’s strategic priorities
• Taking into account Burberry’s purpose, culture and values,
aswell as changing business needs, while also having regard
to wider stakeholder requirements and environmental factors
• Promoting diversity, inclusion and equal opportunity. Our aim
isto ensure that at least 40% of the Board is female and that
atleast one Board member is from an ethnic minority background
Board composition and tenure
Following the departure of Fabiola Arredondo, Sam Fischer
andAntoine de Saint-Affrique after the 2025 AGM, the size
oftheBoard reduced from 12 to nine members. The Committee
considered the size of the Board and concluded that the
Boardcomprising nine members, of which six are independent
Non-Executive Directors is appropriate. The Committee also
considered the Directors’ tenure and concluded that there is a
good balance on the Board between recently appointed Directors
and those who have a longer tenure.
Male
Female
43%
57%
Committee
gender
Nomination Committee membership and meeting
attendance during the year
Committee member Member since Meeting attendance
Gerry Murphy (Chair) 17 May 2018 4/4
Fabiola Arredondo
1
10 March 2015 1/1
Alessandra Cozzani 1 September 2023 4/4
Sam Fischer
1
1 November 2019 1/1
Ron Frasch 1 September 2017 4/4
Danuta Gray 1 December 2021 4/4
Stella King 1 April 2025 4/4
Orna NíChionna 3 January 2018 4/4
Antoine de Saint-Affrique
1,2
1 January 2021 0/1
Alan Stewart 1 September 2022 4/4
1. Fabiola Arredondo, Sam Fischer and Antoine de Saint-Affrique retired from the Board on 16 July 2025 and stepped down
asmembers of the Nomination Committee on that date.
2. Antoine de Saint-Affrique was unable to attend a Nomination Committee meeting due to an unavoidable diary clash.
As at 13 May 2026.
Burberry Annual Report 2025/26128

Skills Review
Following the FY 2024/25 Board performance review, theBoard agreed to undertake a thorough review of Board members’
collective critical skills and experience relative toBurberry’s future business needs in order to optimise Board succession planning.
The Committee wanted to achieve deep insights to identify the most critical skills and experience for the business in the next three
to five years with the aim ofenhancing Board composition data. In line with the Board Composition and Diversity Principles, areas
ofspecialist knowledge and experience required to effectively oversee a FTSE 100 company and support Burberry’s corporate
responsibility agenda are also considered as part of the Board’s succession planning process, for example financial oversight,
sustainability oversight and UK corporate governance experience.
The review was facilitated using the BoardOutlook platform and was conducted as a two-stage process:
Stage 1
Firstly, Board members completed individual Board composition diagnostics to define and identify the skills most relevant
toBurberry based on a consensus view ofsector experience and stakeholder understanding. TheCommittee then discussed
theoutcome and agreed a list of the most important skills aligned to Burberry Forward.
Stage 2
The second stage required the completion of a self-evaluation by each Board member against the skills identified in Stage 1,
rankingtheir strengths from where they were most to least comfortable. A peer review was also completed as part of this phase.
The output of these stages divided the skills into two categories: critical and general, and ranked the level of skill into expert,
advanced, general and limited. Prior skills assessments had not provided this level of detail, giving greater depth to the review.
Outcome
The following table reflects the outcome of the skills review and shows the blend of skills and experience on the Board across
thecritical skills identified. Relevant CEO experience and technology and digital oversight are highlighted as priority areas to upskill
the Board and support the Committee’s ongoing succession planning.
Critical Board Skills Matrix
Directors’ time commitments
The Nomination Committee conducts an annual assessment
ofthe time required by Non-Executive Directors to effectively
discharge their responsibilities. It also assesses through
performance evaluation whether the time they spend executing
their roles is sufficient.
During the year, the Committee reviewed Directors’ time
commitments to ensure that these complied with the policy
onDirectors’ time commitments introduced in FY 2023/24.
According to the policy:
• Non-Executive Directors are expected to hold no more than
four non-executive directorships in public companies, including
Burberry, at any one time
Corporate Governance Statement | Nomination Committee Report
Major change and transformation oversight
Luxury market experience
Marketing and brand oversight
Global markets leadership experience
Relevant CEO experience
Technology and digital oversight
44% 56%
33%
45%
33%
56%
45%
11%
11%
22%
22%
22%
23%
11%
22%
45%
33%
33%
22%
11%
100%80%60%40%20%0%
Expert Level of Skill: Advanced General Limited
• Executive Directors should not undertake more than one
non-executive directorship of a listed company or any other
significant appointment
• In exceptional and compelling circumstances, the Board may
approve an exemption to this policy if it agrees this is merited
in order for the Board to benefit from the individual Director’s
continuing appointment
• Directors are required to obtain prior approval before taking
onany significant additional appointments. The Chair undertakes
this pre-approval on behalf of the Board. Where deemed
necessary, the Chair may escalate specific appointments
forconsideration by the full Board
Burberry Annual Report 2025/26 129

The terms of appointment of the Non-Executive Directors require
that they should allocate sufficient time to meet the expectations
of their role. The Committee considered the expected time
commitment of the Chair and the Non-Executive Directors, taking
into account attendance at Board and Committee meetings,
aswell as engagements outside formally scheduled Board and
Committee meetings, and assessed whether the Non-Executive
Directors had met the requirement. The Committee also considered
the external appointments of the Non-Executive Directors and
reviewed the register of Directors’ conflicts.
The Committee notes that Danuta Gray was Chair of two UK listed
companies for a short period of time during the year, however,
the Committee is satisfied that this had no impact onDanuta’s
ability to meet her Board responsibilities during theshort period
of overlap. Alessandra Cozzani was appointed asaNon-Executive
Director of Brembo N.V. in April 2026. TheBoard was satisfied
that the nature of this role and her existing commitments did
notimpact her ability to meet her Board responsibilities.
TheCommittee is satisfied that all the Directors currently meet
the policy on Directors’ time commitments.
The Board is satisfied that all Directors continue to make effective
and valuable contributions to the Board and devote sufficient time
to discharging their responsibilities as Directors of Burberry.
Directors’ independence
The Committee also conducts an annual review of the
independence of the Non-Executive Directors on behalf of the
Board. The UK Corporate Governance Code requires the Board
tostate its reasons for concluding that a Director is independent
notwithstanding the existence of certain circumstances which are
likely to impair or appear to impair that Director’s independence.
Provision 10 of the Code provides a non-exhaustive list of
suchcircumstances which should be considered, including
lengthofservice.
All Directors will seek re-election at the 2026 AGM.
Board diversity
The Board is committed to driving progress in promoting diversity
in line with the Board Composition and Diversity Principles. These
Principles set clear objectives aligned with the UK Listing Rules
and the recommendations of the FTSE Women Leaders Review
and the Parker Review.
Throughout FY 2025/26, the Board maintained its objective
ofensuring that at least 40% of its members are female. At the
date of this report, women make up 56% of the Board and hold
the key leadership roles of Senior Independent Director and CFO.
Burberry was again recognised in the FTSE Women Leaders
Review published in February 2026, ranking in first place within
both the FTSE 100 and sector category for women on boards and
in leadership. This recognition reflects our commitment to board
diversity and inclusive leadership. At 31 October 2025, the date
used for our submission to its report, women accounted for 56%
of Executive Committee members and their direct reports.
At the date of this report, the Board had at least one Director from
an ethnic minority background and is compliant with the Parker
Review’s target for FTSE 100 companies. While Burberry aims
tomaintain or exceed this standard, during periods of Board
change, this may not always be achieved.
The Board also recognises and embraces the importance and
benefits of diversity and inclusiveness at Board Committee level.
As at 13 May 2026, Board Committee gender diversity was
asfollows:
• Nomination Committee: 57% women
• Audit Committee: 50% women
• Remuneration Committee: 50% women
The Board’s Composition and Diversity Principles reflect the
changes incorporated into the 2024 version of the UK Corporate
Governance Code, which calls on companies to consider
diversityin a wider sense by moving beyond specific
protectedcharacteristics.
During the year, the Board reviewed the Group’s approach
todiversity, equity and inclusion and approved a move to a
cultureof belonging. The Board approved a number of initiatives
designed to embed diversity into Burberry systems and practices
related to recruiting and developing talent, cultivating authentic
leadership and engaging with employees, all in support of the
Reignite a High-Performance Culture pillar of the Burberry
Forward strategy.
The Board’s commitment to diversity in leadership at Burberry
isreflected in our goal for 15% of UK senior management to come
from ethnic minority backgrounds by December 2027, a target
weoutlined in the Annual Report 2023/24. As at the date of this
report, 13% of UK senior management came from an ethnic
minority background.
Corporate Governance Statement | Nomination Committee Report
Burberry Annual Report 2025/26130

Disclosures required under UK Listing Rules 6.6.6(9)R and 6.6.6(10)R as at 28 March 2026
The Board selected 28 March 2026 as the reference date for this disclosure as it was the last day of FY 2025/26 and is consistent
withthe reporting date selected in the prior year. As at this date, the Company complied with the targets for gender diversity set under
UK Listing Rule 6.6.6(9)R.
The Board has continued to meet its obligation to maintain the required gender diversity with over 50% of the Board being female and,
inaddition, women hold both the Senior Independent Director and CFO roles. The Board also complied with the requirement to have
atleast one Director from an ethnic minority background.
The data in the table below was collected by contacting each Board and Executive Committee member directly and inviting them
toself-identify their gender and ethnicity using the specified categories as prescribed in the UK Listing Rules. For Board and Executive
Committee members that reside outside of the UK, additional checks were made to ensure that the collection and publication of their
personal data did not contravene any local laws or protection rights.
Number of
Boardmembers
Percentage of
theBoard
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number
ofexecutive
management
Percentage
ofexecutive
management
Men 4 44 2 7 54
Women 5 56 2 6 46
Not specified/prefer not to say 0 0 0 0 0
Number of
Boardmembers
Percentage of
theBoard
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number
ofexecutive
management
Percentage
ofexecutive
management
White British or other white (including minority-white groups) 8 89 4 9 70
Mixed/multiple ethnic groups 0 0 0 0 0
Asian/Asian British 1 11 0 2 15
Black/African/Caribbean/Black British 0 0 0 0 0
Other ethnic group 0 0 0 2 15
Not specified/prefer not to say 0 0 0 0 0
Corporate Governance Statement | Nomination Committee Report
Burberry Annual Report 2025/26 131

Corporate Governance Statement | Audit Committee Report
AUDIT COMMITTEE REPORT
Dear Shareholder,
I am pleased to present the FY 2025/26 Report of the Audit
Committee (the Committee) which describes the Committee’s
main activities and areas of focus during the year.
Areas of focus during FY 2025/26
The primary purpose of the Committee is to oversee the integrity
of financial reporting and to provide assurance to the Board that
the Company’s internal control and risk management processes
are operating effectively. The Committee also oversees the work
of the external auditor. Details of how we monitored EY’s audit
areavailable on page 135.
This year, we focused on reviewing the Group’s financial performance
and how this was taken into consideration when determining
appropriate accounting estimates relating to impairment
ofproperty, plant and equipment and right-of-use assets and
inventory provisioning. Further to recent high profile cyberattacks
on retail organisations, the Committee has also focused
onmonitoring cybersecurity and related businesscontinuity.
The Committee has been satisfied that management applied robust
and consistent accounting policies and provided the Committee
with sensitivities to these assumptions and forward-looking
trading. We also reviewed and challenged the going concern
assessment and the severe but plausible scenarios, and considered
the liquidity needs of the Group in order to recommend the Viability
Statement on pages 104 and105 totheBoard.
Further information on how the Committee addressed significant
matters during the year is set out in the table on pages 134 and135.
In relation to the Group’s risk management, we carried out a detailed
review of management’s assessment of principal risks, tolerance
levels and mitigations, and concluded these were appropriate.
Wealso reviewed management’s preparations for the revised
Provision 29 of the UK Corporate Governance Code 2024 and the
changing sustainability reporting landscape. Strongprogress has
been made to meet the requirements and wecontinue to monitor
and support management in readiness activities. Further details
of the steps we have taken can be foundon page 137.
The Committee confirms that during FY 2025/26, the Group
complied with the mandatory audit processes and Audit Committee
responsibility provisions of the Competition and Markets Authority
Statutory Audit Services Order 2014. Thisreport describes the
work of the Committee in discharging its responsibilities.
Audit quality review
In December 2025, I was advised of the outcome of an Audit
Quality Assessment carried out by the FRC on the FY 2024/25
audit performed by our external auditor. Mycolleagues and I were
pleased to note that the FRC identified no key or other findings
arising from their inspection. Further details of the assessment
are set out onpage 135.
Committee effectiveness
The Committee’s annual effectiveness review was undertaken as
part of the internal review of Board and Committee effectiveness,
and I am pleased to note that the review confirmed that the
Committee fulfils its purpose well, is well informed and challenges
where appropriate. Further information on the process is set out
on page 125.
Alan Stewart
Chair, Audit Committee
Alan Stewart
Chair, Audit Committee
Areas of focus for FY 2025/26
• Scrutinising financial performance, financial
reporting estimates and judgements
• Monitoring and assessing risk management
and internal control frameworks
• Readiness for implementation
ofProvision29
• Preparedness for sustainability reporting
• Oversight of cybersecurity threat
andresilience
“The Committee has
beensatisfied that
management applied
robustand consistent
accounting policies.”
Burberry Annual Report 2025/26132

Corporate Governance Statement | Audit Committee Report
The role and main responsibilities
oftheCommittee
The role and main responsibilities of the Committee are set out in
written terms of reference, which are available on Burberryplc.com.
The Committee reviews its terms of reference annually to ensure
that they remain fit for purpose and reflect any regulatory or best
practice changes if appropriate. As part of its review in March
2026, a number of minor changes were made to provide greater
clarity and consistency and to explicitly reference the FRC’s Audit
Committees and the External Audit: Minimum Standard (the
Minimum Standard). The Committee considers that the Minimum
Standard has and continues to be met through the discharging
ofthe Committee’s duties as described throughout this report.
Toensure alignment with Provision 29 of the UK Corporate
Governance Code 2024, which will come into effect inFY 2026/27,
the risk management and controls references were updated.
The key areas of responsibilities of the Committee are:
• External auditor: recommending the appointment of the
external auditor, approving their remuneration and overseeing
their work, reviewing reports received by the external auditor
and reviewing their effectiveness and independence
• Financial reporting: ensuring the integrity of the Group’s
financial statements and formal announcements of the Group’s
performance. Approval of management’s identification and
determination of key accounting judgements and estimates
• Risk management and controls: reviewing effectiveness of
systems, processes and policies to assess, manage and monitor
the Company’s risk management and internal controls framework
• Internal Audit: reviewing the annual internal audit programme
and considering the findings of any internal audit investigations
• Whistleblowing and fraud: reviewing procedures for the
prevention and detection of fraud, bribery and corruption,
andanonymous whistleblowing arrangements in place for the
Company’s workforce, including people in our supply chain
Committee composition
Antoine de Saint-Affrique stepped down as a member of the
Committee following his retirement from the Board on 16 July
2025. There were no other changes to the Committee’s
composition during FY 2025/26.
The Board is satisfied that Alan Stewart and Alessandra Cozzani
have recent and relevant financial experience, and that all other
Committee members collectively have appropriate knowledge,
skills and experience in either finance or accounting roles, or
broad consumer experience and knowledge of financial reporting
and/or international businesses. As a whole, the Board is satisfied
that the Audit Committee has the appropriate knowledge, skills
and experience relevant to the business sector to fulfil the duties
delegated to the Committee. The biographies set out on pages
109 to 112 provide details of each member’s background
andexperience.
Meetings and attendance
The Committee met formally four times during the year
(seethetable above).
The Chair of the Committee met separately with representatives
of the external auditor, senior members of the Finance function
and the Vice President, Group Risk and Audit on a regular basis,
including prior to each Committee meeting. In addition, he met
with members of the Group Internal Audit team and other members
of management on an ad hoc basis as required to fulfilhis duties.
Regular attendees at Committee meetings included the Chair
ofthe Board, CEO, CFO, Company Secretary, Vice President,
Group Risk and Audit, Vice President, Group Financial Controller,
General Counsel and representatives of the external auditor.
Atthe end of each meeting, the Committee held closed meetings
with the external auditor and with the Vice President, Group Risk
and Audit, without management being present. The Committee
also held a private session without management being present.
Audit Committee membership and meeting
attendance during the year
Committee member Member since Meeting attendance
Alan Stewart (Chair) 1 September 2022 4/4
Alessandra Cozzani 1 September 2023 4/4
Ron Frasch 7 November 2018 4/4
Danuta Gray 12 July 2023 4/4
Antoine de Saint-Affrique
1
1 January 2021 1/1
1. Antoine de Saint-Affrique retired from the Board on 16 July 2025 and stepped down as a member
oftheAuditCommitteeon that date.
Male
Female
50%
50%
Committee
gender
As at 13 May 2026.
Burberry Annual Report 2025/26 133

Significant matters
for the year ended
28 March 2026 How the Audit Committee addressed these matters
Impairment assessment
ofright-of-use assets
andproperty, plant and
equipment held in retail
cash-generating units
In November 2025, March 2026 and May 2026, the Committee considered management’s
assessment of the recoverability of the carrying value of assets held in retail cash-generating
units,including property, plant and equipment and right-of-use assets relating to store leases.
TheCommittee considered the approach applied by management to review for potential indicators
of impairment of retail cash-generating units and how current performance has impacted this.
TheCommittee reviewed and challenged the sensitivities applied to the estimates of future store
performance and reviewed management’s determination of store impairments and proposed
disclosures of these impairments and sensitivities relating to these uncertainties. The Committee
concluded that the carrying value of assets held in retail cash-generating units and disclosures
contained in the Financial Statements for the period were appropriate.
The results of the impairment assessment of assets held in retail cash-generating units, together
with related sensitivities, are set out in note 13 of the Financial Statements.
The appropriateness
ofthevaluation of the
recoverability of the cost
of inventory and the
resulting estimation
ofprovision required
In November 2025, March 2026 and May 2026, the Committee considered management’s
assessment of the recoverability of the cost of inventory and the resulting amount of provision
required. The Committee reviewed the Group’s current provisioning policy, the expected loss rates
on inventory held at the balance sheet date and the nature and condition of current inventory.
Thereview included analysis of actual inventory, noting the age and expected exit routes for the
remaining surplus inventory held at the balance sheet date and the actual loss rates. The Committee
considered the sensitivity to the assumptions of loss rate and exit route and how this aligned to the
current performance of the business and future expectations and inventory management initiatives
to understand how management quantified the range of potential outcomes and level of estimation
applied. The Committee concluded that the inventory assets recognised and disclosures contained
in the Financial Statements for the period were appropriate. Movements in inventory provision and
the related sensitivities are set out in note 17 of the Financial Statements.
Uncertain tax positions
and the Group’s more
significant tax exposures
and the appropriateness
ofany related provisions
and Financial Statements
disclosures
In November 2025, March 2026 and May 2026, the Committee received regular updates regarding
developments relating to discussions with tax authorities and the status of any ongoing tax audits.
The Committee reviewed and challenged the appropriateness of assumptions and estimates applied
to estimate theamount of assets and liabilities to be recognised in relation to uncertain income tax
and deferredtax positions and the disclosure of any significant estimates applied to tax balances.
The Committee concluded that the assets and liabilities recognised and disclosures contained in the
Financial Statements for the period were appropriate. Details of movements in tax balances are set
out in notes 9 and 15 of the Financial Statements and further disclosure of tax contingent liabilities
isgiven in note 30.
Going concern and viability The Committee considered the risks that could threaten the Group’s business model, future
performance, solvency, liquidity and reputation. It also looked at how these were included in the
severe but plausible downside scenario. This included an aggregation of several severe impacts
ofthese principal risks and the reverse stress test scenario, alongside the current cash position,
facilities available to the Group as well as mitigating actions that could be taken. The Committee
concluded that a robust assessment had been carried out, and in all the scenarios considered the
Group was able to maintain sufficient liquidity to continue trading.
The impact of climate risk
on the Group’s financial
reporting and Financial
Statements (TCFD and
sustainability reporting
considerations)
The Committee considered the impact of climate risk on the Financial Statements and TCFD
reporting on behalf of the Board. The Committee considered the approach taken by management
tofurther develop the digital twin model which was updated with the latest Group performance
andlocations.
The Committee noted the ongoing areas of market and consumer preference risk and physical
risksas being the most significant risks identified by the modelling. The Committee reviewed the
disclosures in the Annual Report on behalf of the Board to ensure they were in compliance with
TCFD recommendations and the assurance provided by the Group’s auditors. The Committee also
reviewed preparations for sustainability reporting progressed by management during the year
including the Double Materiality Assessment.
Corporate Governance Statement | Audit Committee Report
Burberry Annual Report 2025/26134

Significant matters
for the year ended
28 March 2026 How the Audit Committee addressed these matters
Whether the Annual Report
is fair, balanced and
understandable
The Committee considered the Annual Report and Interim Results, on behalf of the Board, to ensure
that they were fair, balanced and understandable, in accordance with the requirements of the
UKCorporate Governance Code. The Committee reviewed the report from the Strategic Report
drafting team, comments arising from the review of the Financial Statements by the Executive
Directors and comments raised by the Group’s auditor.
The Committee also considered the use of alternative performance measures by the Group and
concluded that they were appropriate and that there is an appropriate balance between statutory
and alternative performance measures, ensuring equal prominence.
The Committee concluded that the Burberry Annual Report 2025/26, taken as a whole, is fair,
balanced and understandable, and provides the information necessary to assess the Group’s
performance, business model and strategy.
Other matters During the year, the Committee also considered management’s papers on other subjects,
includingthe application of the Group’s accounting policy for restructuring, lease accounting
andChina deferred tax asset recoverability.
Corporate Governance Statement | Audit Committee Report
External auditor
Ernst & Young LLP (EY) commenced its first year of audit in
FY2020/21, following a competitive tender process. The current
audit partner is Ben Marles who has held the role since 14 May
2025, replacing the previous audit partner who had served for
five years in line with EY’s policy on rotation of audit partners.
TheCommittee considered that given EY’s capabilities, the
effectiveness of the external audit and relationship with Burberry,
it is in the best interests of the Company not to put the external
audit contract out to tender before the end of the current
requiredperiod of 10 years. The next tender will be in respect
ofFY2030/31 at the latest, and the process will be led by
theCommittee.
The Audit Committee oversees and assesses the work undertaken
by EY, and in FY 2025/26 the Committee monitored and reviewed
activities including:
• The audit plan, including audit strategy, scope and materiality
• The approach to risk assessment, including factors impacting
theexternal environment and Burberry’s business and strategy
• The approach to emerging topics such as UK corporate
governance reform, specifically Provision 29
• The approach to auditing controls, the use of data analytics and
how the auditor demonstrated robust professional scepticism
• The limited assurance work carried out on the TCFD disclosures
and key data points in the corporate responsibility disclosures
of the Strategic Report, including carbon emissions, supplier
audits and the Group’s sustainability performance, which are
separate non-audit services provided by EY
• Reports at the half year and full year
In assessing how the auditor demonstrated professional
scepticism, the Committee considered the level of objectivity
EYdemonstrated when challenging the Group’s approach to its
significant judgements and estimates.
During the year, the Committee met with the auditor without
members of management being present.
Independence and effectiveness
One of the Committee’s primary responsibilities is to make a
recommendation on the appointment, reappointment and removal
of the external auditor. Each year, the Committee assesses the
qualifications, expertise, resources and independence of the
external auditor and the effectiveness of the previous audit process.
Over the course of the year, the Committee reviewed the audit
process and the quality and experience of the audit partners
engaged in the audit to satisfy itself that it received the highest
quality audit possible. To support this assessment, a survey was
sent to Audit Committee members and senior members of the
Finance team requesting feedback across a range of factors
thatrate the effectiveness and independence of the audit.
TheCommittee considered the results ofthe survey, noting
thescoring of agree or strongly agree across all questions,
andconcluded that the external audit process waseffective
andconfirmed the independence of EY.
The Committee’s recommendation on the appointment and
reappointment of the external auditor is free from influence
byathird party and there are no contractual obligations which
restrict the Committee’s ability to make such a recommendation.
The Committee also reviewed the proposed audit fee and terms
of engagement for FY 2025/26. Details of the fees paid to the
external auditor during FY 2025/26 can be found in note 7
totheFinancial Statements.
Audit Quality Review
The Company’s FY 2024/25 audit was selected by the FRC for
Audit Quality Inspection, with the assessment focusing primarily
on: inventory provisioning, impairment and impairment reversals
of retail store assets, provision for uncertain tax positions,
revenue recognition and deferred tax asset recoverability.
TheCommittee received and reviewed the final report from the
Audit Quality Review team and were pleased to note the report
identified no key or other findings. The Committee reviewed
theFRC’s report and discussed the outcome of the inspection
with the external auditor.
Burberry Annual Report 2025/26 135

Non-audit services
The Committee recognises that the independence of the
externalauditor is an essential part of the audit framework
andthe assurance that it provides. The Committee has adopted
apolicy which sets out a framework for determining whether
itisappropriate to engage the Group’s auditor for non-audit
services and pre-approving non-audit fees. This policy reflects
the International Ethics Standards Board for Accountants’ Code
of Ethics, which helps ensure high standards of independence
and ethical behaviour are applied consistently by UK audit
firmsand their networks.
The overall objective of the policy is to ensure that the provision
of non-audit services does not impair the external auditor’s
independence or objectivity. This includes, but is not
limitedto,assessing the following:
• Any threats to independence and objectivity resulting from
theprovision of such services; any safeguards in place to
eliminate or reduce these threats to a level where they would
not compromise the auditor’s independence and objectivity;
the nature of the non-audit services; and whether the skills
andexperience of the audit firm make it the most suitable
supplier of the non-audit service
• The value of non-audit services that can be billed by the
external auditor is restricted by a cap, which is set at 70%
ofthe average audit fees for the preceding three years
asdefined by the FRC
During FY 2025/26 the non-audit services provided by Burberry’s
external auditor did not exceed this cap.
Proposed fees above £100,000 are approved in advance by
theChair of the Audit Committee. Non-audit services with a value
below £100,000 and which are in line with the Group’s policy have
been pre-approved by the Audit Committee. Compliance with
thepolicy of engaging the Group’s auditor for non-audit services
and pre-approving non-audit fees is reviewed and monitored
bythe Vice President, Group Risk and Audit. These fees must
beactivity based and not success related. At the half year and
year end, the Audit Committee reviews all non-audit services
provided by the auditor during the period, and the fees relating
tothese services.
During the year, the Group spent £0.4 million on non-audit
services provided by EY (13% of the average of Group audit
feesincurred over the last three years). The rationale for using
theexternal auditor to perform these services was that EY was
best able toprovide the services we require at a reasonable fee
and within theterms of our policy. No advisory services were
provided byEY during FY 2025/26.
Where EY was selected to provide non-audit related services,
EY’s existing knowledge and experience of the Group were taken
into account. Significant non-audit work performed by EY during
FY 2025/26:
• Review of the half-year financial statements
• Limited assurance over TCFD reporting and certain
sustainability disclosures as set out on page 47
• Turnover certificates
• Limited assurance over certain environmental and social key
performance indicators
Further details can be found in note 7 to the Financial Statements.
Evaluation of risk management and
internalcontrols
The Board is responsible for the Group’s risk management
andinternal controls framework. Details of the Group’s risk
management processes and the management and mitigation of
each principal risk, together with the Group’s Viability Statement,
can be found in our Risk and Viability Report on pages 95 to 105.
The Committee discharges its duties in respect of risk
management by:
• Determining the nature and extent of the principal and
emerging risks it is willing to accept to achieve the Group’s
strategic objectives (the Board’s risk appetite)
• Challenging management’s implementation of effective
processes of risk identification, assessment and mitigation
The Audit Committee is responsible for reviewing the
effectiveness of the Group’s internal controls. Ongoing review
ofthese controls is provided through internal governance
processes and the work of the Group is overseen by management,
particularly the work of the Group Internal Audit team and the
Risk Committee. Regular reports on these activities are provided
to the Audit Committee as reflected in the standing items
ontheAudit Committee agenda.
The Board, through the Audit Committee, has conducted
arobustassessment of the principal and emerging risks and
internal control framework. It has considered the effectiveness
ofthe internal controls in operation across the Group for the
yearcovered by the Annual Report and Accounts and up to the
date of its approval by the Board. This review covered the material
controls, including financial, operational, reporting and compliance,
as well as risk management processes. No significant control
weaknesses were identified. The internal controls are designed
tomanage rather than eliminate the risk of not achieving business
objectives and can only provide reasonable and not absolute
assurance against material misstatement or loss.
The process followed by the Board, through the Audit Committee,
in regularly reviewing the system of internal controls and risk
management processes complies with the Guidance on Risk
Management, Internal Control and Related Financial and Business
Reporting issued by the FRC. It also accords with the provisions
of the Code. A management steering committee oversees the
Group’s internal control framework in response to the revisions
ofProvision 29 of the UK Corporate Governance Code, which apply
to the Group from FY 2026/27. The steering committee reviews
internal controls practices on an ongoing basis and recommends
enhancements where required.
During FY 2025/26, the internal control framework was further
embedded, with material controls refined and supported by
defined effectiveness criteria and an agreed assurance plan.
Apreliminary assessment has been completed to assess
thedesign and operating effectiveness of material controls.
InFY 2026/27, the framework will operate in full to support
thefirst year-end declaration.
Corporate Governance Statement | Audit Committee Report
Burberry Annual Report 2025/26136

Control environment
Our business model is based primarily on centralised design,
product development, supply chain and distribution operations
tosupply products to global markets via retail channels, including
digital and wholesale channels. This is reflected in our internal
control framework, which includes centralised direction, resource
allocation, oversight and risk management of the key activities
ofmarketing and inventory management, as well as brand and
technology development. We have also established procedures
for the delegation of authorities to ensure that approval for
matters considered significant is provided at an appropriate level.
In addition, we have policies and procedures in place designed
tosupport risk management across the Group. These include
policies relating to treasury and the conduct of employees and
third parties with whom we do business, including prohibiting
bribery and corruption. These authorities, policies and procedures
are kept under regular review.
The Group operates a ‘three lines of defence’ model, which helps
to achieve effective risk management and internal control across
the organisation.
• First line of defence: management owns and manages risk
andis also responsible for implementing corrective actions
toaddress process and control deficiencies
• Second line of defence: to help ensure the first line is properly
designed, established and operating effectively, management
has also established various risk management and compliance
functions to help build and/or monitor the first line of defence.
These include, but are not limited to, functions such as Group
Risk Management, Legal, Brand Protection, Company
Secretariat, Group Finance Compliance, Health and Safety,
Data Protection and Asset and Profit Protection
• Third line of defence: Group Internal Audit provides the
AuditCommittee and management with independent and
objective assurance on the effectiveness of governance,
riskmanagement and internal controls. This includes the way
inwhich the first and second lines of defence achieve risk
management and control objectives
Corporate Governance Statement | Audit Committee Report
Provision 29 activities
During both FY 2025/26 and FY 2024/25, the Audit
Committee had oversight of and reviewed management’s
approach to readiness for Provision 29 of the UK Corporate
Governance Code 2024, which the Company will berequired
to report compliance against for FY 2026/27. Thishas
included the consideration of the scope of the Provision
29internal controls framework covering operational,
compliance and reporting controls and review of the
roadmap to achieving compliance.
Management has updated the Audit Committee on the key
activities undertaken which have included:
• The establishment of an Internal Controls Steering
Committee, with regular meetings and representation
from Group Risk, Finance, Sustainability Finance, Internal
Audit, Legal and IT, with assigned leads to drive
workstreams towards readiness
• COSO mapping of the entity-level controls and the
framework that underpins the control environment
• The integration of principal risks together with wider
operational, compliance, reporting and entity-level risks
into a revised governance and controls framework. This
includes defined accountability for risks and controls and
clear design and operating criteria to support assessment
and identification of areas requiring enhancement to
meet the requirements of the Code provision
• The identification of a proposed subset of controls
considered to be material, informed by management
assessment, discussion with external consultants and
peer company forums
• Following analysis of risk scenarios, the Audit Committee
has established a subset of risks and controls to be
classed as material for ongoing monitoring and reporting
to the Board. These material controls represent the
critical judgements and higher-level elements of the
controls environment underpinning the Group’s material
operational, compliance and reporting risks
• Determining appropriate oversight of material risks
andcontrol frameworks through the Global Process
Owners forum delegation from Board to Audit Committee
to oversee/monitor material controls and the level
ofassurance over their effectiveness
• Performing testing of control operations across selected
areas. Group Internal Audit intends to continue to support
the Audit Committee through ongoing assurance as the
framework is embedded during FY 2026/27
Burberry Annual Report 2025/26 137

Corporate Governance Statement | Audit Committee Report
Internal Audit
The Audit Committee is responsible for the appointment of
theHead of Internal Audit to manage the Group Internal Audit
function. Following a change in personnel, in July 2025, and after
carefully considering the requirements of the role, the Committee
appointed the Vice President, Group Risk and Audit, who reports
to the CFO but has an independent reporting line to the Chair
ofthe Audit Committee, as the new Head of Internal Audit.
The scope of Internal Audit work is considered for each
operatingCompany and Group function. This takes account
ofrisk assessments, input from senior management and the Audit
Committee, and previous audit findings. For example in FY 2025/26,
the annual plan included assurance over strategic transformation
and the maturity of controls across IT projects and operations.
The plan also focused on assessing the maturity of controls
across core processes in Finance, Supply Chain, Legal and
Marketing. Changes to the Group’s risk profile are considered
onan ongoing basis and amendments are made tothe Internal
Audit plan as necessary during the year. Any proposed changes
to the plan are discussed with the CFO and reported to the
AuditCommittee.
The effectiveness of Group Internal Audit is assessed every five
years, with the latest review completed in April 2025.
Ongoing visibility of the internal control environment
isprovidedthrough Internal Audit reports to management
andtheAudit Committee. These reports are graded to reflect
anoverall assessment of the control environment under review,
andthe significance of any control weaknesses identified,
including fraud risk.
Remedial actions to address findings are identified and agreed
with management. The Audit Committee places emphasis
onactions being taken as a result of internal audits and regular
reports are provided to the Audit Committee on the status
ofanyoverdue actions.
Financial reporting
Management is responsible for establishing and maintaining
adequate internal controls over financial reporting. These are
designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of Financial Statements
for external reporting purposes.
We have comprehensive planning, budgeting, forecasting and
monthly reporting and management review processes in place.
Asummary of financial results, supported by commentary and
performance measures, is provided to the Board each month.
In relation to the preparation of Group Financial Statements,
thecontrols in place include:
• A centre of expertise responsible for reviewing new
developments in reporting requirements and standards to
ensure that these are reflected in Group accounting policies,
Financial Statements and disclosures
• A global Finance function and governance structure consisting
of colleagues with the appropriate expertise to ensure that
Group policies and procedures are correctly applied. Effective
management and control of the Finance function is achieved
through our Finance Leadership team, comprising key finance
colleagues from the regions, Burberry Business Services and
our London headquarters
Our financial reporting process is supported by transactional and
consolidation finance systems. Reviews of financial controls are
carried out by the Group Financial Compliance team and attested
to by senior members of the Finance function. The results of
these reviews are considered by the Audit Committee as part
ofits monitoring of the performance of controls governing
financial reporting.
The Audit Committee reviews the application of financial
reporting standards and any significant accounting judgements
made by management. These matters are also discussed with
theexternal auditor.
Burberry Annual Report 2025/26138

Fair, balanced and understandable
As a whole, the Annual Report and Accounts are required to be
fair, balanced and understandable, and to provide the information
necessary for shareholders to assess the Group’s position,
performance, business model and strategy.
On behalf of the Board, the Audit Committee considered if
thefair, balanced and understandable statement could properly
be given on behalf of the Directors. In making its assessment,
itconsidered the process of the preparing the report.
The flow diagram below outlines the various stages and layers
ofcollaboration and oversight involved in the production
oftheAnnual Report and Accounts, demonstrating a clear
androbust process.
To assist the Audit Committee with its consideration of whether
the FY2025/26 Annual Report and Accounts taken as a whole, is
fair, balanced and understandable, members of the Annual Report
Steering Committee provided assurance that:
• The report is open and honest
• Our challenges are covered alongside successes
• KPIs are clear, linked to strategy and show progress over time
• All material information relevant to shareholders is included
• Our business model, strategy and accounting policies are
explained clearly and concisely
• We have a consistent tone throughout the report
• Sources of additional information are clearly signposted
Corporate Governance Statement | Audit Committee Report
The Audit Committee was satisfied that the processes followed
and the assurances provided were sufficient to recommend to the
Board that the fair, balanced and understandable statement could
be given on behalf of the Directors.
Based on this recommendation, the Board is satisfied that it has
met this obligation. A summary of the Directors’ responsibilities
inrelation to the Financial Statements is set out on page 181.
TheIndependent Auditor’s Report on pages 182 to 191 includes
astatement concerning the auditor’s reporting responsibilities.
Drafting
Each section of the
report is drafted by
area specialists
from Corporate
Communications,
Finance, Investor
Relations, Corporate
Responsibility,
Strategy, Legal,
Human Resources,
Risk, Internal Audit,
and Company
Secretariat
functions.
Oversight
An Annual Report
Steering Committee
consisting of the
senior management
from each of the
functions reviews
the overall report
atvarious stages
ofdrafting to ensure
key messaging
isincluded, there
isconsistency
across the report,
ease ofnavigation
for stakeholders,
and that the report
reflects a balanced
view of the
business.
External advisors
We engage with our
external advisors,
both legal and audit,
to provide feedback
or assurances at
various stages
ofreporting and
implement
recommendations
where appropriate.
External
proofreading
The report is
reviewed as a whole
by external
proofreaders to
ensure clarity,
consistency
oflanguage and
messaging, ease
ofreading and
navigation.
Board oversight
and Audit
Committee
review
During the drafting
process, two draft
versions of the
report are shared
with the Board
forreview and
comment.
Further to any final
amendments, the
Committee are
provided with a full
copy of the report
for review and
comment, and any
amendments are
discussed and fed
back to content
owners for
incorporation.
1 2 3 4 5
Burberry Annual Report 2025/26 139

Summary of meetings
The Audit Committee typically meets four times a year. During FY 2025/26, the Committee held four meetings and the agenda items
discussed are summarised in the table below. Details of attendance at Committee meetings are set out on page 133.
May
2025
• Reviewing the integrity of the Group’s Financial Statements and Preliminary Results statement forFY 2024/25
• Reviewing the FY 2024/25 year-end key accounting judgements and estimates
• External auditor’s FY 2024/25 year-end audit results report
• Internal Audit update, review of the Internal Audit forward plan and results of the five-yearly effectivenessreview
• Risk management and internal controls: reviewing the Group’s internal financial, operational, reporting
andcompliance controls and risk identification and management process
• Reviewing the Company’s Going Concern and Viability statements considering the Group’s financial position
andmanagement’s assumptions and disclosures prior to approval by the Board
• Consideration of the Group’s TCFD disclosures
• UK Corporate Governance Code 2024 compliance, including fair, balanced and understandable assessment
• Effectiveness and independence of external auditor and recommendation for shareholders to re-appoint EYattheAGM
• Legal risk update reviewing current and emerging risks across legal, brand protection, asset and profit protection
and health and safety
• Ethics Committee update, including the Group’s approach to human rights and modern slavery
andwhistleblowingarrangements
July
2025
• Reviewing management’s approach to cybersecurity, data privacy and related business continuity
• Preparations for Provision 29 of the UK Corporate Governance Code 2024, further details of which can be found
onpage 137
• Review of store design and construction operational processes
• Preparation for upcoming sustainability reporting regulations, including management’s Double MaterialityAssessment
November
2025
• Half Year financial reporting matters
• External auditor’s review at the Half Year and audit planning report for FY 2025/26
• Risk management update, including review of the principal risks disclosure for Half Year results
• Internal controls update
• Fraud risk approach, including management’s response to the Economic Crime and Corporate Transparency
Act2023 failingtoprevent fraud offence
• Internal Audit update
• Legal risk update reviewing current and emerging risks across legal, brand protection, asset and profit protection
and health and safety
• Ethics Committee report, including the Group’s approach to human rights and modern slavery
andwhistleblowingarrangements
March
2026
• Pre-year-end update on significant judgements, estimates and disclosures
• External audit control update and observations
• Tax update and approval of the Group Tax Strategy
• Treasury update and policy review
• Sustainability reporting, including the Double Materiality Assessment
• Risk management, including review of principal and emerging risks
• Internal Audit update
• Review of governance matters, including the Committee’s terms of reference and an update on subsidiary
companyaccounts
• Business continuity update, including review of plans to strengthen resilience
• Preliminary review of anticipated FY 2025/26 financial reporting matters
• Review of major IT change projects and related governance oversight
Corporate Governance Statement | Audit Committee Report
Burberry Annual Report 2025/26140

DIRECTORS’
REMUNERATION REPORT
Corporate Governance Statement | Directors’ Remuneration Report
Dear shareholder,
I am pleased to present to you the Directors’ Remuneration
Report for the year ended 28 March 2026 which has been
approved by both the Remuneration Committee (the Committee)
and the Board.
Review of the Directors’ Remuneration Policy
In line with the normal three-year renewal cycle in the UK, our
Directors’ Remuneration Policy (the Policy) is being submitted
forshareholder approval at our Annual General Meeting (AGM)
inJuly 2026. In advance of this, the Committee completed a
comprehensive review of Burberry’s remuneration framework,
and we are proposing a number of improvements to the Policy
toensure that it allows us to continue to retain, incentivise
andrecruit leaders of the required calibre to deliver our
strategicambitions.
Business context
Since Joshua Schulman’s appointment as CEO and the launch
ofthe Burberry Forwardstrategy in November 2024, we have
seen customers return to the brand they love. Increased brand
relevance and an improved product offer have resulted in a return
to comparable sales growth and significant improvements in
Group adjusted operating profit (£160 million) and in free cash
flow generation in FY 2025/26. The positive momentum across
the business has reinforced our conviction inBurberry Forward
asthe right strategic path. Under Josh’s leadership, we are
moving forward with confidence that we are well positioned
forsustainable long-term value creation and with clarity on
ouropportunities for further growth.
Market context
Burberry is unique. We are the only UK-listed luxury fashion
brand. We operate in a highly competitive sector and the direct
peers with whom we compete for talent and sales are global
companies based outside the UK. Our competitors are therefore
not subject to the same governance expectations onremuneration
that apply to a UK-listed company. It is in our shareholders’ interests
that we are able to compete with these companies for proven
leaders with luxury experience who can recognise the strength
ofthe Burberry brand and deliver long-term shareholder value.
In our review of the Policy, the Committee has considered market
practice from two reference points. Our primary reference point
is a group of our most relevant listed competitors, other global
luxury brands including a number of companies based in the
USA(these companies are set out on page 147). Our secondary
reference point comprises UK-listed companies of a similar size
and complexity to Burberry as the Committee is mindful of the
importance of continuing to take into account UK market
practicegiven our UK listing.
Policy review process and shareholder consultation
The Committee began reviewing the Policy shortly after the2025
AGM. We started by evaluating our current Policy andidentified
anumber of ways in which the Policy could evolve tosupport
thedelivery of our strategy over the coming years andcontinue
toretain and incentivise our high-calibre executive management
team. However, as the Company was still in the early stages
ofour Burberry Forward strategy, we decided that itwould be
more appropriate to undertake our shareholder consultation
process later in the year after our third quarter trading update.
Danuta Gray
Chair, Remuneration Committee
Areas of focus for FY 2025/26
• Directors’ Remuneration Policy review
andshareholder engagement
• Executive reward
• Broader employee reward
• External environment
• External reporting
Details of agenda items discussed at each Committee
meeting are set out on page 176.
“The Committee valued
shareholders’ views as
weshaped our executive
remuneration proposals
thisyear.”
Burberry Annual Report 2025/26 141

This timing enabled us to give full consideration totangible
progress under Burberry Forward, including the resultsof the
critical festive period and the reception to our Winter 2026
runway collection.
Following our third quarter trading update, we wroteto our major
shareholders controlling approximately 60% of our issued share
capital, as well as the key proxy bodies. Our Chair, Gerry Murphy,
and I met with many of our largest shareholders and consulted
with the major proxy bodies to discuss the proposed changes
tothe Policy and to seek feedback. I would like to take this
opportunity to thank the shareholders and proxy bodies who
tookpart in the consultation. The Committee greatly valued the
input ofour shareholders and we appreciated the opportunity
tounderstand the range of shareholders’ views as we shaped
ourexecutive remuneration proposals this year. Wewere pleased
tofind that the majority of these shareholders recognised the
importance of retaining and incentivising our management team
over the longer term and were therefore broadly supportive of the
Committee’s proposals. We were also pleased to hear the strong
levels of support for the Executive Directors. The Committee
carefully considered therange of feedback received and adapted
our final proposals accordingly, as set out on page 144.
Proposed Policy changes
The key change being proposed is the introduction of performance
share awards (PSP awards) to complement our existing restricted
share awards (RSP awards), a combination that is referred to as
ahybrid long-term incentive plan (hybrid LTIP). Both PSP and RSP
awards will be granted under the Burberry Share Plan (the BSP),
as amended subject to shareholder approval at the 2026 AGM.
Todate, RSP awards granted under the BSP have been referred
toas BSP awards. In future, as both awards will be granted under
the BSP, we will now refer to restricted share awards as RSP awards.
The proposed introduction of a hybrid LTIP takes into account
thefollowing factors:
• Incentivisation: we are confident that Burberry Forward is
theright strategic path for Burberry, supported by our results
for FY 2025/26. This is a critical time for Burberry and the
introduction of a hybrid LTIP is designed to incentivise the
senior leadership team to deliver on this strategy and achieve
our stretching long-term ambitions, leading to increased brand
value and the delivery of shareholdervalue.
• Retention: we have a high calibre Executive Committee, led
byJosh. The Committee recognises the importance of retaining
Josh and other leaders and incentivising them to continue to
deliver Burberry Forward. The implementation of a hybrid LTIP
is considered the most effective route to achieving this.
• Market practice: several of our luxury peers, particularly
thosebased in the USA, operate a hybrid LTIP. As a result, it is
astructure in which globally mobile luxury leaders increasingly
expect to participate. The USA is an important talent market
forBurberry, as evidenced by the appointment of Josh, a
USAnational and former CEO of USA businesses. In addition,
we have sourced a number of members of our Executive
Committee and other senior leaders from our global luxury
peers, including companies based in the USA, France and Italy.
The introduction of a hybrid structure will help Burberry to
continue to retain, incentivise and recruit world-class leaders
which is fully aligned with the interests of our shareholders.
• Alignment: by aligning reward with the delivery of stretching
long-term targets, the introduction of PSP awards is intended
to create even greater alignment between shareholders and
Josh and the leadership team.
• Shareholder feedback: during previous consultations, a number
of our shareholders expressed a preference for PSP awards
tobe used in conjunction with RSP awards.
Quantum – CEO
The Committee is proposing the following award levels to be
granted to Josh under the BSP:
• New PSP award with a maximum opportunity of 300% of salary
• RSP award with a maximum opportunity of 150% of salary
(reduced from 162.5% of salary)
Corporate Governance Statement | Directors’ Remuneration Report
Remuneration Committee membership and meeting
attendance during the year
Committee member Member since Meeting attendance
Danuta Gray (Chair) 1 December 2021 6/6
Fabiola Arredondo
1
10 March 2015 1/1
Sam Fischer
1
1 November 2019 1/1
Ron Frasch 1 September 2017 6/6
Orna NíChionna 3 January 2018 6/6
Alan Stewart 12 July 2023 6/6
1. Fabiola Arredondo and Sam Fischer retired from the Board on 16 July 2025 and stepped down as members
oftheRemuneration Committee on that date.
2. All Committee members attended all scheduled meetings.
Male
Female
50%
50%
Committee
gender
As at 13 May 2026.
Burberry Annual Report 2025/26142

Corporate Governance Statement | Directors’ Remuneration Report
In determining this award level, the Committee carefully
considered pay practices from our two reference points noted
onpage 147 (the global luxury market and similarly sized UK-listed
companies). The Committee has been mindful that no single
comparator group will provide the ‘right answer’ and, although
theUK market is a useful reference point (and includes a number
of UK-listed companies that have recently introduced a hybrid
LTIP), the luxury peer group is made up of the companies with
which Burberry competes on a day-to-day basis and is therefore
our primary reference point.
Josh’s award levels have been chosen so as to be appropriately
incentivising (aligning him with the delivery of the strategy),
retentive (improving his positioning relative to our luxury peers),
and reasonable (we are not seeking to match the median PSP
opportunity of our USA peers in recognition of the fact that we
area UK-listed company). Although the Committee has not sought
tomatch USA pay levels, we have been mindful of shareholder
preferences by ensuring that the majority of the total long-term
opportunity is in the form of PSP awards and subject to the
delivery ofstretching performance targets.
The Committee noted that this would be the first ongoing increase
in the variable pay opportunity for the CEO role at Burberry since
FY 2016/17 when we operated a performance share award at
325% of salary (which was subsequently converted, in line with
best practice, to a restricted share award at 162.5% of salary
following the 2020 AGM).
The Committee took account of shareholder feedback and
following the consultation decided to reduce the RSP award level
for Josh from 162.5% of salary to 150% of salary.
Market data for the peer groups is set out on page 147.
Approach for other senior leaders
RSP awards granted under the BSP currently extend to senior
management roles across Burberry. The Committee is keen
toalign our most senior leaders with the CEO. Therefore, we are
intending to extend the hybrid LTIP to a small number of senior
roles including the CFO, Kate Ferry, and other members of the
Executive Committee. The Committee believes that this will
further support focus on the delivery of Burberry Forward.
The Committee is proposing the following awardlevels to be
granted to Kate under the BSP:
• New PSP award with a maximum opportunity of 175% of salary
• RSP award with a maximum opportunity of 150% of salary
(reduced from 162.5% of salary)
The Committee has set Kate’s PSP opportunity at 175% of salary
so as to appropriately incentivise her and recognise her important
role in the successful delivery of Burberry Forward. This has
beenset above her RSP opportunity in line with shareholder
expectations. This award level recognises the different market
dynamics for the roles of CEO and CFO and takes into account
market data from the peer groups set out on page 147.
In determining this award level, the Committee has taken into
account Kate’s significant contribution since joining Burberry
inJuly 2023. She played a key role in stabilising the business
through a very challenging period and was instrumental
inJosh’sonboarding as CEO. She then supported Josh on
thedevelopment and delivery of the initial stages of Burberry
Forward, including driving cost savings that positioned the
business well for futuresuccess.
PSP award structure
The Committee is proposing to adopt a market-standard PSP
award structure for a UK company. PSP awards will vest subject
to stretching performance targets measured over three years.
This will be followed by a two-year holding period for the
Executive Directors only.
PSP award measures and targets
In developing the PSP award structure, the Committee has sought
to avoid unnecessary complexity, to retain a strong link between
executive reward and sustainable value creation, and to encourage
the delivery of strategic priorities under Burberry Forward.
Theproposed PSP award measures are (i) revenue; (ii) return
oninvested capital (ROIC) and (iii) relative total shareholder
return (TSR). Further details of the PSP award measures and
targets can be found on pages 154 and 167.
Increased shareholding guidelines
The Committee understands the importance of aligning
executives with the experience of our shareholders and requiring
them to build up significant shareholdings. We are therefore
proposing to increase the in-employment shareholding guideline
for the CEO from 300% to 400% of salary. This is towards the
upper end of UK market practice. The in-employment shareholding
guideline for the CFO will remain at 300% of salary.
Remuneration outcomes for the Executive Directors
forFY 2025/26
Annual bonus for FY 2025/26
The annual bonus for FY 2025/26 was based 75% on adjusted
operating profit and 25% on performance against strategic
objectives. The Group delivered a strong performance during
theyear, including adjusted operating profit of £160 million
whichwas above the maximum target. Therefore, the adjusted
operating profit element will pay out in full.
Based on its assessment of performance, the Committee
determined that the strategic objectives for both Josh and Kate
would pay out at 90% of maximum. This reflects their strong
performance and delivery of the Burberry Forward strategy
duringFY 2025/26. Further details of their performance and
theCommittee’s assessment are set out on pages 162 to 164.
The final bonus payout for FY 2025/26 for both Josh and Kate
was 97.5% of maximum which the Committee considers to
beappropriate in the context of their personal performance,
thewider business performance and the broader shareholder
experience. As a result, the Committee has not applied discretion
in respect of the outcome.
Both Josh and Kate will be required to use 50% of their net bonus
to acquire Burberry shares until they have satisfied their
shareholding guideline.
2023 BSP award outcome
Kate’s 2023 BSP award is due to vest in July 2026. This was her
first BSP award, granted only 10 days after she joined Burberry
inJuly 2023, by which time the performance underpins had
already been determined. These underpins are based on revenue,
ROIC and brand and sustainability strategies. The Committee has
assessed performance and determined that the underpins linked
to brand and sustainability strategies have been met but the
revenue and ROIC underpins have not been met.
Burberry Annual Report 2025/26 143

Corporate Governance Statement | Directors’ Remuneration Report
An underpin not being met triggers a review by the Committee
asto whether or not it would be appropriate to scale back the
level of vesting under the BSP, taking into account that the purpose
of the underpins is to act as a ‘safeguard’ to ensure that awards
do not pay out if the Company has underperformed, asopposed
to being stretching performance targets.
The Committee has carefully considered our underpin assessment
framework and has balanced the following considerations:
• Successful achievement of the brand and sustainability
strategy underpins:
• Brand: after the launch of our Burberry Forward strategy
inNovember 2024, in partnership with the CEO, Kate played
a key role in delivering a series of actions to stabilise the
business and position the brand for future growth under our
Timeless British Luxury expression. Notable achievements
included helping to reduce our inventory and reducing the
cost base of the business through the delivery of operating
cost saving initiatives. By the end of FY 2025/26, our brand
expression had gained momentum, delivering strong growth
in our core product categories through coherent storytelling
with cultural relevance for global audiences utilising an
expanded talent ecosystem.
• Sustainability: Burberry made good progress against its
sustainability and carbon reduction goals across the three-year
period, delivering a 14.2% reduction in Scope 1 and 2 emissions
between FY 2023/24 and FY 2025/26. Targeted operational,
sourcing and supplier initiatives resulted in year-on-year
reductions in Scope 3 emissions across the same period.
• Context of financial performance: the primary reason that the
underpins have been missed is that they were set under the
previous strategy. The Group is delivering encouraging signs
ofimprovement through the transition to Burberry Forward which
was implemented after Josh was appointed as CEO in 2024.
Inaddition, since 2023 there has been a slowdown in global
luxury demand which has impacted financial performance and
contributed to the revenue and ROIC underpins being missed.
• Accountability: the BSP underpins were based on the strategy
and budgets developed by the previous executive management
team prior to Kate’s appointment as CFO. The Committee does
not consider Kate accountable for the previous strategy and
acknowledges that she inherited legacy capital investment
decisions which have continued toimpact performance
intohertenure.
• Recent performance on revenue and ROIC: the Committee
took into account the Group’s encouraging performance since
the launch of Burberry Forward in November 2024, including
thefollowing:
• Revenue: total Group revenue for FY 2025/26 was flat versus
FY 2024/25 atCER*, an improvement versus the 15% decline
the previous year, with comparable sales up 2% year-on-year.
The Group also delivered higher quality revenue across all
channels and regions, as we returned toashorter, shallower
and more discrete markdown period.
• ROIC: Group ROIC was 5.5% in FY 2025/26, representing
ayear-on-year improvement of 4.5% points, driven by
animprovement in profitability, reductions inborrowings
andlease debt.
• Shareholder alignment: Kate’s award was granted in July 2023
with the number of shares determined using a share priceof
£21.8217. Based on the three-month average share price asat
28 March 2026 (£11.69), there has effectively been a reduction
in the value of the CFO’s award of approximately 46%.
Thisreduction has already delivered a strong alignment
between the value of Kate’s award and the experience
ofshareholders over the period since grant.
• Remuneration decisions: in addition to the reduction in the
value of her 2023 BSP award due to the current share price,
Kate’s remuneration has already been heavily impacted by the
company’s performance and the grant value of her 2024 BSP
award was reduced by 20% in line with the approach taken for
all 2024 BSP participants.
• Individual performance: Kate has made asignificant contribution
to Burberry since her appointment and played a key role
inthedevelopment and initial delivery ofBurberry Forward.
After careful consideration of these factors and taking into
account the views expressed by some of our shareholders, the
Committee has agreed to scale back the vesting of the CFO’s
2023 BSP award by 20%. The Committee considers this an
appropriate reduction that balances the fact that two underpins
have not been met with the mitigating factors set out above.
A holding period of two years will apply following vesting.
Response to shareholder and proxy body feedback
As discussed on pages 141 and 142, the Committee undertook an
extensive shareholder consultation process. The Committee made
a number of refinements to our approach in direct response to
the feedback from the consultation. These included the following:
• Reduction to the RSP award level: the Committee’s original
proposal preserved the RSP award at its current award
level(162.5% of salary). Although many shareholders were
comfortable with this, a number of shareholders expressed
apreference for a reduction to the RSP award to acknowledge
the introduction of the PSP award. As a result, the Committee
determined to reduce the RSP award to 150% of salary.
TheCommittee considers the overall award levels appropriate,
taking into account that increasing the total compensation
andimproving Burberry’s positioning relative to our luxury
peers is a fundamental aim of the new Policy.
• PSP performance target ranges: the proposed target
rangestake into account the feedback received during the
consultation, in particular the stretching level of performance
expected by shareholders for maximum vesting. We have set
targets based on a range of factors including: (i) our internal
four-year financial plan; (ii) analyst estimates for Burberry
forthe next threeyears; (iii) historic performance; and
(iv)independent expectations for growth in the luxury market.
Inline with best practice, achieving budget/consensus over
thenext three years would result in a partial vesting of the PSP
award between threshold and maximum, with maximum vesting
requiring the delivery of truly exceptional performance, including
the delivery of revenue of £3.1 billion at CER by FY2028/29
(acompound annual growth rate ofc.9% from FY 2025/26,
ahead of external expectations forthe luxury market).
• 2023 BSP award reduction: the Committee took the
opportunity whilespeaking to shareholders on the Policy to
also discuss our intended approach to the 2023 BSP underpins.
Shareholders were sympathetic to the considerations above and
several ofthem would have been comfortable for no reduction
to havebeen made. However, some shareholders were mindful
ofthe risk ofsetting a precedent and therefore expressed
apreference for the 2023 BSP award to be scaledback.
During the consultation process we received a number of consistent
questions. For transparency, our answers tothose questions are
set out on pages 146 and 147.
* This measure removes the effect of changes in exchange rates compared to the prior period.
Burberry Annual Report 2025/26144

Approach to remuneration for FY 2026/27
Salary and Board fees
Having carefully considered the broader context and the approach
for the wider workforce, the Committee determined that the
Executive Directors and the Chair would receive a salary/fee
increase of 3% with effect from 1 July 2026. This aligns with
thebudgeted rate for our broader UK workforce.
The Board determined that the fee for the Senior Independent
Director would increase to £35,000 with effect from 1 July 2026
and that there would be no other increases to the Non-Executive
Directors’ fees for FY 2026/27.
Annual bonus
The annual bonus structure for FY 2026/27 for the Executive
Directors will be broadly unchanged. The maximum bonus will
continue to be 200% of salary. The annual bonus will be based
75% on adjusted operating profit and 25% on performance
against strategic measures aligned to year two of the Burberry
Forward strategy. Further details are provided on page 164.
2026 RSP and PSP awards
Subject to shareholder approval at the 2026 AGM, RSP
andPSPawards will be granted under the BSP in July 2026.
The 2026 RSP awards will be granted on the same basis as
the2025 BSP awards but at the reduced award level of 150%
ofsalary. RSP awards will continue to be subject to the same
performance underpins: (i) revenue, (ii) ROIC and (iii) brand and
sustainability. The Committee considers that these underpins
continue to represent a well-rounded and balanced approach
tosafeguarding the financial stability of the business, delivering
our Burberry Forward strategy and enhancing the long-term value
of the brand. Further details are set out on page 168.
It is proposed that the 2026 PSP award will be granted at 300%
of salary for the CEO and 175% of salary for the CFO. Awards
willbe subject to three equally-weighted performance measures:
(i)revenue (one-third of award), (ii) ROIC (one-third of award)
and(iii) relative TSR (one-third of award). The Committee will
review the choice of measures and target ranges prior to each
future award to ensure that they continue to be aligned with
andappropriately reflect our strategy. Further details are set
outonpages 167 and 168.
Subject to the performance measures and performance
underpins above, PSP and RSP awards will vest after three years
and will then be subject to a two-year post-vesting holding period.
Broader employee reward
Burberry is committed to being a responsible employer and
torewarding our people fairly and transparently. As part of
ourBurberry Forward strategy, we are focused on reigniting
ahigh-performance culture and living our values, recognising
strong performance through reward. We are simplifying
performance and reward processes (for example, our approach
toyear-end performance assessment) and providing greater
transparency on reward.
In the UK, where we are a Principal Partner of the Living Wage
Foundation and an accredited UK Living Wage employer,
weimplemented a pay increase in April 2026 of 5.5% outside
Londonand 5.7% in London for colleagues eligible for Living Wage
increases. This was above the recommended rates set out by the
Living Wage Foundation for the third year in a row and positively
impacted around 550 colleagues. All other eligible colleagues
willreceive salary increases at the usual time in July 2026.
Corporate Governance Statement | Directors’ Remuneration Report
We are pleased to make a payout under the annual corporate
bonus plan for FY 2025/26 to eligible colleagues based on
adjusted operating profit, sustainability metrics and individual
performance. We also refreshed our Retail Variable Pay Plan to
ensure that the variable reward of our retail teams is fully aligned
with the Burberry Forward strategy.
In December 2025, we granted our annual award of free shares
toall colleagues globally. We also offered Sharesave in 17 countries
and territories. For our management population, July 2025 saw
the vesting of the 2022 BSP awards.
The Committee recognises the significance of meaningful
communication with our workforce on performance and reward.
In March we once again held a dedicated session with our Global
Workforce Advisory Forum on remuneration at Burberry. This session
gave Forum members the opportunity to share their views and
askquestions. Forum members reported positive feedback about
working at Burberry, including a strong sense of pride in the
brand and connection with our purpose. The Committee greatly
values the high levels of engagement shown by Forum members
and the insight into our culture that our meetings provide. I also
ensure that the perspectives of our workforce are considered
inCommittee meetings. These touchpoints allow the Committee
to take into account the alignment of our reward programmes with
culture when setting remuneration for the Executive Directors.
Additional details on reward for the broader workforce and its
alignment with the Executive Directors’ remuneration can be
found on page 149.
Committee effectiveness
The Committee’s annual performance and effectiveness
reviewwas undertaken as part of the internally facilitated Board
effectiveness review and I am pleased to note that the review
confirmed that the Committee operates well and provides effective
support to the Board. Further information on the process is set
out on page 125.
2026 AGM
The Committee, together with the Board, believes that the
proposals outlined in this letter are in shareholders’ interests
andwill support the delivery of the Burberry Forward strategy and
the creation of long-term, sustainable shareholder value. I look
forward to receiving your support for the Directors’ Remuneration
Report and the 2026 Directors’ Remuneration Policy at the AGM
on 15 July 2026.
Danuta Gray
Chair, Remuneration Committee
Burberry Annual Report 2025/26 145

Corporate Governance Statement | Directors’ Remuneration Report
NEW DIRECTORS’ REMUNERATION POLICY – FREQUENTLY ASKED QUESTIONS
What other
approaches did the
Committeeconsider?
• During our review, the Committee considered a wide range of alternative approaches including
the following:
• An important aspect of the proposals is reducing the remuneration gap to our closest luxury
peers. The Committee considered doing so, in part, through an increase to the annual bonus
maximum. However, we were mindful of shareholders’ preference for longer-term alignment
and determined that the introduction of a PSP was the most appropriate way of improving
ourpay positioning and to align the senior leaders with the long-term strategy.
• The Committee also considered the merits of a one-off long-term plan. Although a one-off
plan could help to incentivise the delivery of the strategy, the Committee determined that
annual grants of PSP awards were preferable in order to create a genuine long-term outlook
and to mitigate the risk of cliff-edge vesting which could lead to potential retention concerns
in thefuture.
• Ultimately, the Committee decided that a hybrid LTIP was the most appropriate structure for
Burberry at this time in order to continue to incentivise the delivery of Burberry Forward and
toretain and incentivise our management team over the longer term.
Why does the
Committee think now
is the time to move
toa hybrid LTIP
whenit has previously
beensatisfied with a
restricted share plan?
• The 2026 renewal of the Policy comes at a critical time for Burberry under the leadership
ofJoshua Schulman as CEO. Joshua has outlined a new strategic path for Burberry under
theBurberry Forward strategy, and the introduction of performance-based share awards
isdesigned to continue to incentivise our senior leaders to deliver on this strategy and achieve
our stretching long-term ambitions.
• The Committee has also been mindful that many of our luxury peers operate hybrid LTIPs.
Asaresult, it is the structure in which globally mobile leaders of the calibre required to run
aluxury brand like Burberry increasingly expect to participate.
How would the
introduction of a
hybrid LTIP support
the successful delivery
of the Burberry
Forward strategy
andalign with
shareholders’ interests
and support the
creation of sustainable
long-term value?
• Burberry Forward is our strategic plan to reignite brand desire, improve performance and
drivelong-term value creation. The introduction of a performance-based long-term incentive
willdirectly align our leaders’ reward with the long-term delivery of Burberry Forward.
• Revenue and ROIC are two critical strategic KPIs which the Committee considers will provide
anappropriate assessment of the successful delivery of the strategy. The Committee has set
stretching revenue and ROIC targets which are aligned with our ambitions under Burberry
Forward as set out on pages 167 and 168.
• The use of relative TSR complements the use of the two financial measures by directly aligning
the payout with the experience of our shareholders, with vesting requiring the outperformance
of our closest sector peers.
• RSP and PSP awards will both be subject to post-vesting holding periods so that the Executive
Directors are aligned with the share price and the experience of shareholders until five years
from the date of grant.
Why are you
proposing the use
ofrevenue and ROIC
forboth the RSP
andPSP awards?
• RSP and PSP awards will perform different roles within our reward framework.
• The purpose of the PSP award performance measures is to incentivise the delivery of our
long-term strategic priorities. The RSP award underpins act as a trigger for the Committee
toensure that RSP awards do not pay out if the Company has underperformed and vesting
isnotjustified, as opposed to being stretching performance targets.
• Naturally there is some overlap between the two. TheCommittee considers that revenue and
ROIC are both equally appropriate as PSP performance measures and RSP underpins, given
their alignment to our strategicambitions.
Burberry Annual Report 2025/26146

Corporate Governance Statement | Directors’ Remuneration Report
What was the
Committee’s approach
tobenchmarking?
• The Committee considered benchmarking data for two peer groups. Ourprimary peer group
oflisted luxury peers is made up of the following companies: Brunello Cucinelli, Canada Goose,
Capri Holdings, Hermès, Hugo Boss, Kering, LVMH, Moncler, Prada, PVH Corp., Ralph Lauren
Corporation, Richemont, Salvatore Ferragamo, Tapestry Inc and Zegna Group. These are the
listed companies which currently comprise our peer group for the relative TSR measure for PSP
awards. The secondary peer group is made up of the constituents oftheFTSE 100.
• The charts below set out total target compensation data for the CEO compared to our two
peergroups.
• A nuance of the luxury market is that several of our peers have a CEO who is part of, or connected
to, the company’s founding/controlling family. In the majority ofthese cases, the CEO has
comparatively modest remuneration arrangements as shown below.
• The Committee also noted that both LVMH and Hermès have significantly larger market
capitalisations than Burberry. However, as a result of their CEOs being part ofthe founding/
controlling family, their target total compensation is positioned below the median of the group
despite them being the largest companies in the peer group. The inclusion of LVMH and Hermès
in the peer group does not inappropriately increase the marketdata.
• The Committee also considered the recent implementation of hybrid LTIPs in other
UK-listedcompanies.
1. Luxury peer group 2. FTSE 100
CEO total target compensation Lower quartile Median Upper quartile
Luxury peer group £4.55m £8.24m £9.72m
Luxury peer group (excluding where the CEO is part of the founding/controlling family) £6.16m £8.50m £10.32m
FTSE 100 £3.26m £4.48m £6.23m
Burberry (current) £4.47m
Burberry (proposed) £6.30m
£16m £16m
£14m
£12m
£10m
£8m
£6m
£4m
£2m
£0m
£14m
£12m
£10m
£8m
£6m
£4m
£2m
£0m
Burberry
(proposed)
Burberry
(current)
Burberry
(proposed)
Burberry
(current)
Luxury peer with conventional CEO Luxury peer where the CEO is part of the founding/controlling family
CEO total target compensation data
Burberry Annual Report 2025/26 147

Corporate Governance Statement | Directors’ Remuneration Report
AT A GLANCE
Summary of changes to the Directors’ Remuneration Policy, remuneration approach for FY 2025/26 and approach to implementation
forFY 2026/27.
Element Approach for FY 2025/26 Approach for FY 2026/27
Changes to Directors’
Remuneration Policy
Base salary
Salaries from 1 July 2025:
• Joshua Schulman (CEO) – £1,200,000
• Kate Ferry (CFO) – £675,000
After full consideration of the broader context
theCommittee awarded the CEO and the CFO
asalary increase of 3% in line with the approach
forthe wider UK workforce.
Salaries from 1 July 2026:
• Joshua Schulman (CEO) – £1,236,000
• Kate Ferry (CFO) – £695,250
No change
Pension
Pensions for FY 2025/26 were in line with the maximum
employer pension contribution available to the majority
ofthe UK workforce (currently 10% of salary).
No change for FY 2026/27. No change
Benefits
The cash benefits allowance for Kate Ferry (CFO) for
FY 2025/26 was £20,000. Joshua Schulman did not
receive a cash benefits allowance.
Non-cash benefits principally include private medical,
long-term disability insurance and life assurance.
Joshua Schulman received payment of a housing
allowance associated with his relocation from New York
toLondon. Further details are set out on page 161.
No change for FY 2026/27. No change
Annual bonus
Maximum annual bonus of 200% of salary.
Performance measures:
• 75% adjusted operating profit
• 25% strategic objectives
Executive Directors are required to invest 50% of any
netbonus into Burberry shares until the shareholding
guideline is met.
Malus and clawback provisions apply.
No change for FY 2026/27. No change
Burberry
SharePlan
– restricted
share plan
awards
Maximum restricted share plan (RSP) annual award levels:
• Joshua Schulman (CEO) – 162.5% of salary
• Kate Ferry (CFO) – 162.5% of salary
Awards vest in full after three years subject to
achievement of performance underpins and are subject
toa holding period to the fifth anniversary of grant of award.
Details of the performance underpins for the 2025 awards
are set out on page 166.
Malus and clawback provisions apply.
Maximum RSP annual award levels:
• Joshua Schulman (CEO) – 150% of salary
• Kate Ferry (CFO) – 150% of salary
Details of the performance underpins for the 2026
awards are set out on page 168.
Reduction of
maximum award
levels from 162.5%
to 150% of salary
Burberry
SharePlan
– performance
share plan
awards
N/A New Performance Share Plan (PSP) introduced.
Maximum PSP annual award levels:
• Joshua Schulman (CEO) – 300% of salary
• Kate Ferry (CFO) – 175% of salary
Awards subject to a three-year performance
periodwith a holding period to the fifth anniversary
ofgrantof award.
Details of the performance measures for the 2026
awards are set out on pages 167 and 168.
Malus and clawback provisions apply.
Introduction of new
PSP awards
Shareholding
guideline
In-employment shareholding guideline: 300% of salary
Post-employment shareholding guideline: 300% of salary
(or actual shareholding if lower) for two years after
stepping down as an Executive Director.
In-employment shareholding guideline: 400%
ofsalary for Joshua Schulman (CEO) and 300%
ofsalary for Kate Ferry (CFO).
Post-employment shareholding guideline: 100%
ofin-employment shareholding guideline (or actual
shareholding if lower) for two years after stepping
down as an Executive Director.
Increased
in-employment
shareholding
guideline for the
CEO to 400%
ofsalary
No other changes
The Committee considers that the Directors’ Remuneration Policy operated as intended during FY 2025/26.
Burberry Annual Report 2025/26148

Corporate Governance Statement | Directors’ Remuneration Report
BROADER EMPLOYEE REWARD AT BURBERRY
At Burberry, our reward philosophy is to provide our colleagues across the Group with fair, equitable and
competitive total reward. Our total reward framework is aligned to our Reignite a High-performance Culture pillar
and designed tosupport our purpose, values and strategy, inspiring our colleagues to deliver outstanding results.
Ourframework iscascaded across the Group and consists of the following key components:
Element How we reward and support our colleagues
Base salary
All colleagues receive
afair and equitable
market-driven salary.
• We review salaries on an annual basis through our pay review process with increases differentiated for
performance and the relative pay position of the colleague compared with internal peers and the local
market. The global 2026 pay review budget was set at 3%.
• In the UK, where we are a Principal Partner of the Living Wage Foundation and an accredited UK
LivingWage employer, we implemented a pay increase in April 2026 of 5.5% outside London and 5.7%
in London for around 550 colleagues eligible for Living Wage increases. For the third year in a row,
these increases were above the recommended rates set by the Living Wage Foundation.
Executive Director alignment: the Committee considers any salary increases in the context of
businessperformance, the broader shareholder experience and our approach for the wider workforce.
The Committee determined that the salaries for the Executive Directors would increase by 3% in line with
the approach for the wider UK workforce.
Benefits
The wellbeing of our
colleagues plays an
important role in how
webuild high-performing
teams, nurture strong
leaders and support
colleagues on their
journey with us.
Allcolleagues are
eligible toparticipate in
arangeof market-driven
benefits, including those
promoting wellbeing
andsupporting saving
for retirement.
Our global benefits offer includes:
• Parental Leave Policy providing all eligible new parents with 18 weeks’ paid leave
• Wellbeing days (in addition to annual leave entitlement) providing paid time off during the year
• Volunteering Policy providing colleagues with three paid volunteering days per year
• Employee discount and product sales
• Long service awards at each five-year milestone
• Pension schemes available in line with local market practice
• Access to our Employee Assistance Programme
Executive Director alignment: Executive Directors receive a pension allowance in line with the
rateavailable to the majority of our UK workforce. They are eligible for a range of market-typical
non-cash benefits.
Variable pay
All colleagues are
eligible for short-term
variable pay plans to
recognise and reward
both business and
individual performance.
• Bonuses have been awarded to eligible colleagues under the annual corporate bonus plan for
FY 2025/26 based on adjusted operating profit, sustainability metrics and individual performance.
• During FY 2025/26 we refreshed our Retail Variable Pay Plan to ensure that our retail teams are
aligned with the Burberry Forward strategy.
Executive Director alignment: Group adjusted operating profit, sustainability and individual/strategic
performance targets apply to the bonuses for the Executive Directors and participants in the annual
corporate bonus plan.
Share plans
All colleagues are
eligible to participate
inBurberry share plans
to recognise and reward
their contribution
andtoenable them to
sharein the long-term
success of our Burberry
Forwardstrategy.
We offer the following share plans at Burberry:
• Free Share Plan: gives all colleagues the opportunity to participate in our future success through
anannual award of free shares with a value of approximately £500
• Sharesave: provides the opportunity for colleagues to save monthly from their pay up to a maximum
of£500 per month and buy shares at a 20% discount to the market price at grant
• Burberry Share Plan (BSP): rewards approximately 600 of our senior colleagues for delivering on our
long-term strategy through an annual share award that vests after three years, subject to continued
employment, with the next annual vesting in July 2026
Executive Director alignment: Executive Directors are eligible to participate in our share plans.
Burberry Annual Report 2025/26 149

Corporate Governance Statement | Directors’ Remuneration Report
2026 DIRECTORS’ REMUNERATION POLICY
Burberry’s Directors’ Remuneration Policy as set out in this report (the 2026 Directors’ Remuneration Policy) willbeput to shareholders
for approval at the 2026 AGM to be held on 15 July 2026. If approved, the 2026 Directors’ Remuneration Policy will apply to payments
made and share awards granted fromthe date of the 2026 AGM.
The Committee believes that Burberry’s executive remuneration should be simple and transparent while being linked to business
performance and strategic direction, taking into account the global markets in which the Company operates and from which it recruits
talent as well as our approach to remuneration throughout the Group.
Summary of decision-making process and changes to Directors’ Remuneration Policy
As discussed in the letter from the Chair of the Committee, during the year the Committee undertook a review of the Directors’ Remuneration
Policy and its implementation to ensure that it supports the execution of strategy and the delivery of sustainable long-term shareholder
value. Throughout the review process, the Committee took into account the 2024 UK Corporate Governance Code, wider workforce
remuneration and emerging best practice in relation toExecutive Director remuneration. The Committee also considered input from
management and our independent advisors as well asconsidering guidance from major shareholders. The Committee considers the
potential for conflicts of interest and manages them asnecessary. No Director was present when their own remuneration was discussed.
The main change to the Directors’ Remuneration Policy is the introduction of performance share plan awards (PSP) and the reduction
ofthe maximum opportunity under the restricted share plan awards (RSP) from 162.5% to 150% of salary. PSP awards will be subject
toathree-year performance period, with vesting contingent on the achievement ofpre-determined performance measures. The PSP
awards will also be subject to a post-vesting holding period to the fifth anniversary ofgrant. The maximum RSP award has been reduced
from 162.5% of salary to 150% of salary. In addition, the in-employment shareholding guideline for the CEO will be increased from 300%
to400% of salary. Other minor changes have been made to the wording of the Directors’ Remuneration Policy to increase flexibility,
toaidoperation, to increase transparency and to reflect typical market practice. Further details are provided in the letter from the
Chairofthe Committee set out on pages 141 to 145.
Policy table – Executive Directors
Base salary
To recognise the responsibilities and experience of our Executive Directors in a competitive global environment.
Operation Maximum opportunity Performance measures
The Committee sets base salary taking
intoaccount:
• The individual’s skills, experience,
performance and overall contribution
tothebusiness
• Salary levels at other companies of a similar
size and complexity in both the UK and the
broader luxury sector
• Pay and conditions elsewhere in the Group
• The impact of any base salary increase
onthe total remuneration package
Any salary increases are normally effective
from 1 July.
While there is no maximum salary, increases
will normally be in line with or below the
typical increases (in percentage terms)
awarded to other employees in the Group.
However, increases may be above this level
incertain circumstances, including (but not
limited to):
• Where an Executive Director has been
appointed to the Board at a lower than
typical market salary to allow for growth in
the role, larger increases may be awarded
to move salary positioning closer to typical
market level as the Executive Director gains
experience and performance warrants this
• Where an Executive Director has been
promoted or has had a change in
responsibilities
• Where there has been a significant change
in market practice
• Where there has been a significant
changein the size and/or complexity
ofthebusiness
N/A
Burberry Annual Report 2025/26150

Corporate Governance Statement | Directors’ Remuneration Report
Pension
To support planning for retirement.
Operation Maximum opportunity Performance measures
Executive Directors participate in defined
contribution arrangements.
Participants may elect to receive some or
allof their entitlement as a cash allowance.
The maximum Company contribution
orallowance for the Executive Directors is
aligned with the maximum Company pension
contribution available to the majority of the
UKworkforce (currently 10% of salary).
N/A
Other benefits and allowances
To provide competitive benefits and promote wellbeing.
Operation Maximum opportunity Performance measures
Executive Directors may receive a cash
allowance to cover a range of benefits
typically provided in the luxury market, such
as clothing and a car. Cash allowances are
currently up to £50,000 per annum.
Other benefits for Executive Directors may
include, but are not limited to:
• Private medical insurance
• Life assurance
• Long-term disability insurance
• Employee discount
• Participation in all-employee share plans
onthe same terms and up to the same
maximum amounts as other employees
Reasonably incurred expenses will be
reimbursed. The Company may meet any tax
liabilities which may arise on expenses.
The Committee may introduce other benefits
for the Executive Directors if this is
considered appropriate taking into account
the individual’s circumstances, the nature of
the role and practice for the wider workforce.
Where an Executive Director is required
torelocate to perform their role, appropriate
one-off or ongoing benefits may be provided
(such as housing, schooling etc).
The cost of the provision of allowances and
benefits varies from year to year depending
on the cost to the Company and there is
noprescribed maximum limit. However,
theCommittee monitors annually the overall
cost of the benefits provided to ensure that
itremains appropriate.
N/A
Burberry Annual Report 2025/26 151

Annual bonus
To incentivise and reward our Executive Directors for achieving annual targets linked to the execution of the Company’s strategy.
Operation Maximum opportunity Performance measures
Annual bonuses are normally paid in cash.
Executive Directors are required to invest
50% of any net bonus earned into Burberry
shares until shareholding guidelines are met.
Bonuses are not pensionable.
Discretion: the Committee may determine that
it is appropriate to adjust the bonus outcome
if, for example, outcomes are not considered
to be reflective of underlying financial or
non-financial performance of the business
orthe performance of the individual, where
targets are no longer considered appropriate
or where the outcome is not considered
appropriate in the context of the experience
of shareholders or other stakeholders.
Anyadjustment would be within the limits
ofthe 2026 Directors’ Remuneration Policy.
Clawback provision: during the period of three
years from the date of payment, the Company
may seek to recover any bonus from individual
Executive Directors in whole or in part in
theevent of a material misstatement in the
Company’s audited financial statements,
ifthebonus outcome has been incorrectly
calculated or where the participant has
engaged in serious misconduct (including
breach of a Company policy) which results
inserious reputational damage for the
Company and/or which justifies, or could
justify, summary dismissal of the participant.
Maximum annual bonus opportunity of 200%
of base salary.
Normally, 50% of the bonus shall pay out for
target levels of performance with up to 25%
ofthe bonus paying out for threshold levels
ofperformance. The Committee has the
discretion to adjust the portion of the award
that pays out for threshold and/or target
performance if appropriate.
The Committee shall determine
performance measures and
targets for the bonus each year.
These may include financial
measures (for example profitability)
and other measures linked
tothedelivery of the business
strategy or business operations,
environmental and social strategy
or individual performance.
In normal circumstances no less
than 70% of the annual bonus will
be based on financial measures.
The Committee has the discretion
in exceptional circumstances
toadjust existing performance
targets and/or set different
measures if events occur outside
management’s control or where
the target no longer satisfies its
original purpose of ensuring that
pay is aligned with performance.
Targets are normally set with
reference to budget, the strategic
plan, long-term financial goals and
market expectations.
Targets are considered to be
commercially sensitive and will be
disclosed retrospectively following
completion of the relevant financial
year provided they are no longer
commercially sensitive.
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26152

Burberry Share Plan (BSP): restricted share awards (RSP)
To focus our Executive Directors on, and reward them for, sustainable long-term performance and successful execution of the Company’s
long-term strategy.
To align our Executive Directors’ interests with those of shareholders.
Operation Maximum opportunity Performance measures
Awards are structured as either conditional
rights to receive shares on vesting or
nil-costoptions.
Awards will normally vest three years from
thedate of grant of the award, subject to
performance underpins.
A post-vesting holding period normally applies
to RSP awards, typically on a net-of-tax basis.
Shares that vest will normally be subject
toasale restriction until the fifth anniversary
ofthe date of grant of the award, aside from
invery limited circumstances.
If the Company does not meet one or more
performance underpins at the date of vesting
then the Committee would consider whether
itwas appropriate to scale back the number
of shares that vest under the award.
Dividend equivalents may be paid in shares
orin cash in respect of shares that vest.
Discretion: the Committee may determine that
it is appropriate to adjust the vesting outcome
if, for example, outcomes are not considered
to be reflective of the underlying financial
ornon-financial performance of the business
or the performance of the individual, where
underpins are no longer considered appropriate
or where the outcome is not considered
appropriate in the context of theexperience
of shareholders or other stakeholders.
Anyadjustment would be within the limits
ofthe 2026 Directors’ Remuneration Policy,
although it would be exceptional.
Malus and clawback provision: unvested
shares or awards may be forfeited or vested
shares may be clawed back during the period
of six years from the date of grant in whole or
in part in the event of a material misstatement
in the Company’s audited financial statements,
if the vesting outcome has been incorrectly
calculated or where the participant has
engaged in serious misconduct (including
breach of a Company policy) which results
inserious reputational damage for the
Company and/or which justifies, or could
justify, summary dismissal of the participant.
Maximum awards are 150% of base salary. Performance underpins may be
based around key financial and/or
strategic measures and/or share
price measures.
Performance underpins for awards
granted in 2026 will relate to
financial measures and strategic
and sustainability objectives.
The Committee may use different
performance underpins for future
awards if deemed appropriate.
Performance underpins will be set
taking into account the business
strategy and to ensure failure
isnot rewarded.
Performance underpins will
normally be disclosed ahead
ofeach annual grant. Details
oftheperformance achieved
against theunderpins will
normallybedisclosed.
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26 153

Burberry Share Plan (BSP): performance share awards (PSP)
To focus our Executive Directors on, and reward them for, stretching and sustainable long-term performance and successful execution
ofthe Company’s long-term strategy.
To retain and incentivise our Executive Directors of the required calibre to deliver the Company’s strategy.
To align our Executive Directors’ interests with those of shareholders.
Operation Maximum opportunity Performance measures
Awards are structured as either conditional
rights to receive shares on vesting or
nil-costoptions.
Awards will normally vest following the end
ofa three-year performance period, subject
toperformance conditions.
A post-vesting holding period normally applies
to PSP awards, typically on a net-of-tax basis.
Shares that vest will normally be subject
toasale restriction until the fifth anniversary
ofthe date of grant of the award, aside from
invery limited circumstances.
Awards under the PSP, including the
determination of any relevant performance
conditions, will be considered and determined,
on an annual basis, at the discretion of
theCommittee.
Dividend equivalents may be paid in shares
orin cash in respect of shares that vest.
Discretion: the Committee may determine that
it is appropriate to adjust the vesting outcome
if, for example, outcomes are not considered
to be reflective of the underlying financial
ornon-financial performance of the business
or the performance of the individual,
whereconditions are no longer considered
appropriate or where the outcome is not
considered appropriate in the context of
theexperience of shareholders or other
stakeholders. Any adjustment would be within
the limits of the 2026 Directors’ Remuneration
Policy, although it would be exceptional.
Malus and clawback provision: unvested
shares or awards may be forfeited or vested
shares may be clawed back during the period
of six years from the date of grant in whole or
in part in the event of a material misstatement
in the Company’s audited financial statements,
if the vesting outcome has been incorrectly
calculated or where the participant has
engaged in serious misconduct (including
breach of a Company policy) which results in
serious reputational damage for the Company
and/or which justifies, or could justify,
summary dismissal of the participant.
Maximum awards are 300% of base salary.
No more than 25% of the PSP award will vest
for threshold performance, with full vesting
taking place for equalling or exceeding the
maximum target.
Performance measures may be
based around key financial and/or
strategic measures and/or share
price measures.
Performance measures for awards
granted in 2026 will relate to
revenue, ROIC and relative TSR.
The Committee may use different
performance measures for future
awards if deemed appropriate.
Targets will normally be set with
reference to budget, the strategic
plan, long-term financial goals and
market expectations.
The Committee has the discretion
to amend the performance targets
if events occur which cause the
Committee to reasonably consider
that it would be appropriate.
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26154

Shareholding guidelines
To align the interests of Executive Directors and shareholders and encourage long-term shareholding and commitment to the Company
both during and after employment.
Operation Maximum opportunity Performance measures
Executive Directors are expected to build and
maintain a holding of Company shares equal
to at least 400% of base salary for the CEO
and at least 300% of base salary for other
Executive Directors.
Executive Directors will normally be expected
to maintain a minimum shareholding of 100%
of their in-employment guideline (or actual
shareholding if lower) for two years after
stepping down as an Executive Director.
The Committee retains discretion to waive this
guideline if it is not considered appropriate
inthe specific circumstances.
N/A N/A
Notes on share awards:
1. Adjustment of share awards: the number of shares subject to an award (and the option price, where relevant) can be adjusted on a rights issue, special dividend, demerger or variation
of capital or similar transaction. Subject to the plan rules, share awards can be satisfied by a cash payment equal to the value of shares the participant would otherwise have received.
For Executive Directors, this provision will only be used in exceptional circumstances, such as where, for regulatory reasons, it is not possible to settle awards in shares.
2. In respect of our share plans, this table presents a summary of the key and relevant information for the plan rules. These plans will operate in accordance with the relevant plan rules
asapproved by shareholders (where applicable).
Selection of performance measures and approach to target setting
The annual bonus is normally based on a combination of financial, strategic and environmental and social metrics to support the delivery
of key business priorities.
RSP awards are subject to performance underpins. For 2026, awards will be linked to financial measures, brand and sustainability.
Theseunderpins have been selected as they are considered to be good yardsticks of the overall financial stability and sustainability
oftheorganisation and are therefore aligned with shareholder value creation and the long-term interests of the Company.
PSP awards are subject to performance measures. For 2026, awards will be linked to relative TSR, revenue and ROIC. These performance
measures have been selected as they are aligned with shareholder value creation and the long-term interests of the Company. Targets
are set taking into account both internal and external assessments of future performance and what constitutes superior returns for
shareholders. The Committee also retains the discretion within the 2026 Directors’ Remuneration Policy to adjust the targets and/or
setdifferent measures and/or alter weightings forfuture awards.
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26 155

Corporate Governance Statement | Directors’ Remuneration Report
Policy table – Non-Executive Directors
Purpose Operation Maximum annual opportunity
Chair – fees
To attract and retain a
high-calibreChair by offering
amarket-competitive fee.
The Chair is paid a single fee for all
responsibilities.
The fee level is reviewed at appropriate
intervals by the Committee, taking into
account time commitment, the experience
andcalibre of the individual and personal
contribution and fee levels at other companies
of a similar size and complexity.
The fee may be paid in cash and/or shares.
There is no maximum fee level or maximum
fee increase.
Non-Executive Directors
–fees
To attract and retain high-calibre
Non-Executive Directors by
offering market-competitive fees.
The Non-Executive Directors are paid a basic
fee. The Chairs of the Audit and Remuneration
Committees and the Senior Independent
Director are paid an additional fee to reflect
their extra responsibilities and the required
time commitment.
Fee levels are reviewed at appropriate
intervals by the Board, taking into account
time commitment and fee levels at other
companies of a similar size and complexity.
The Company may pay an additional fee to
aNon-Executive Director should the Company
require additional time commitment
orresponsibilities.
Fees may be paid in cash and/or shares.
There is no maximum fee level or maximum
fee increase.
Chair and Non-Executive
Directors –other benefits
To enable the Chair and
Non-Executive Directors
toundertake their roles.
The Non-Executive Directors (other than
theChair) may receive a Board attendance
allowance per meeting for attendance
atBoard meetings outside their country
orterritory of residence. Attendance
allowances are paid in cash.
As brand ambassadors, the Chair and
Non-Executive Directors receive discounts
onBurberry products.
Reasonably incurred expenses will be
reimbursed. The Company may meet any tax
liabilities that may arise on expenses.
Additional benefits may be introduced
ifconsidered appropriate.
The Chair is eligible to receive healthcare
cover and to have access to a car and driver.
Benefit levels are reviewed on an annual basis
and the value can vary year on year. Any
additional benefits will be set at a level
appropriate to the role and the individual.
The Company may meet any tax liabilities that
may arise on expenses or benefits.
Burberry Annual Report 2025/26156

Corporate Governance Statement | Directors’ Remuneration Report
Approved payments
The Committee reserves the right to make any remuneration payments and/or payments for loss of office (including exercising
anydiscretions available to it in connection with such payments) notwithstanding that they are not in line with the 2026 Directors’
Remuneration Policy set out in the document where the terms of the payment were agreed (i) before the 2026 Directors’ Remuneration
Policy came into effect, provided that the terms of the payment were consistent with any applicable shareholder-approved Directors’
Remuneration Policy in force at the time they were agreed or were otherwise approved by shareholders; or (ii) at a time when the relevant
individual was not a Director of the Company (or other persons to whom the Directors’ Remuneration Policy applies) and, inthe opinion
ofthe Committee, the payment was not in consideration for the individual becoming a Director of the Company or such other person.
Forthese purposes ‘payments’ includes the Committee satisfying awards of variable remuneration and, in relation toanaward over
shares, the terms of the payment are ‘agreed’ no later than the time the award is granted. This Policy applies equally toanyindividual
whois required to be treated as a Director under the applicable regulations.
Policy on recruitment and promotion arrangements
When determining the remuneration package for a newly appointed Executive Director, the Committee would seek to apply the
followingprinciples:
• The package should be market-competitive to facilitate the recruitment of individuals of sufficient calibre to lead the business.
Atthesame time, the Committee would intend to pay no more than it believes is necessary to secure the required talent
• New Executive Directors will normally receive a base salary, benefits and pension contributions in line with the Directors’ Remuneration
Policy described on pages 150 and 151 and would also be eligible to join the bonus and share incentive plans up to the limits inthe
Directors’ Remuneration Policy
• In addition, the Committee has discretion to include any other remuneration component or award which it feels is appropriate taking
into account the specific circumstances of the recruitment, subject to the limit on variable remuneration set out below. The key terms
and rationale for any such component would be disclosed as appropriate in the Directors’ Remuneration Report for the relevant year
• Where an individual forfeits outstanding variable pay opportunities or contractual rights at a previous employer as a result of
appointment, the Committee may offer compensatory payments or awards, in such form as the Committee considers appropriate,
taking into account all relevant factors including the form of awards, expected value and vesting timeframe of forfeited opportunities.
When determining any such buy-out award, the guiding principle would be that awards would generally be on a like-for-like basis
unless this is considered by the Committee not to be practical or appropriate
• Excluding any buy-out awards (referred to above), the maximum level of variable remuneration which may be awarded in respect
ofrecruitment is 650% of salary (which is in line with the maximum limit under the annual bonus, RSP awards and PSP awards in this
Directors’ Remuneration Policy)
• Where an Executive Director is required to relocate to take up their role, the Committee may provide assistance with relocation
(viaeither one-off or ongoing payments or benefits)
• In the event that an internal candidate is promoted to the Board, legacy terms and conditions would normally be honoured, including
any accrued pension entitlements and any outstanding incentive awards
To facilitate any buy-out awards outlined above, in the event of recruitment the Committee may grant awards to a new Executive Director
relying on the exemption in the UK Listing Rules, which allows for the grant of awards to facilitate, in unusual circumstances, the recruitment
of an Executive Director, without seeking prior shareholder approval or under any other appropriate Company incentive plan.
Supplementary information
Remuneration policy in the rest of the Company
The remuneration arrangements for Executive Directors outlined earlier in this report are consistent with those for other senior executives,
although quantum and award opportunities vary by executive level.
In making its decisions on executive remuneration, the Committee considers the reward framework for all employees globally, ensuring
that the principles applied are consistent with the Directors’ Remuneration Policy. Pay review increases awarded to Executive Directors
aredetermined within the broader context of employee remuneration. All our employees are eligible for a variable incentive based on
performance and the principle of shareholder alignment is reflected throughout the organisation through our all-employee share plans,
which are (where legally possible) extended to all eligible Burberry employees globally.
Burberry is a partner of the Living Wage Foundation and accredited as a UK Living Wage employer.
Burberry Annual Report 2025/26 157

Corporate Governance Statement | Directors’ Remuneration Report
Executive Director total remuneration at different levels of performance
CEO – Joshua Schulman CFO – Kate Ferry
Notes:
1. ‘Minimum’ remuneration is fixed pay comprising base salary (salary from 1 July 2026 of £1,236,000 for Joshua Schulman and £695,250 for Kate Ferry), pension of 10% of salary,
cash allowance (£20,000 for Kate Ferry) and an estimate of the value of other ongoing non-cash benefits (£70,000 for Joshua Schulman and £15,000 for Kate Ferry).
2. ‘Target’ remuneration includes fixed pay plus target annual bonus (50% of maximum) plus 50% vesting of the PSP award plus 100% vesting of the RSP award.
3. ‘Maximum’ remuneration includes fixed pay plus maximum annual bonus (100% of maximum) plus 100% vesting of the PSP award plus 100% vesting of the RSP award.
4. ‘Maximum + 50% share price growth’ is as outlined for the maximum scenario above with a 50% increase in share price applied to the PSP and RSP awards.
5. The maximum annual bonus for FY 2026/27 is 200% of salary for both Executive Directors. The maximum PSP awards are 300% of salary for Joshua Schulman and 175%
ofsalary for Kate Ferry. The maximum RSP awards are 150% of salary for both Executive Directors.
6. No share price growth or dividend payments have been applied to share awards included in these indicative total remuneration figures other than where noted.
Indicative total remuneration levels
A substantial portion of Executive Director remuneration is dependent on Company performance. The charts below illustrate indicative
levels of total remuneration which would be received by each Executive Director under the 2026 Directors’ Remuneration Policy set out
on pages 150 to 160 for the first financial year in which it will apply (FY 2026/27). These are shown at each of the following performance
scenarios: (1) minimum, (2) target, (3) maximum and (4) maximum + 50% share price growth.
£14,000k
£12,000k
£10,000k
£8,000k
£6,000k
£4,000k
£2,000k
£0k
£1,430k
100%
29%
39%
20%
26%
15% 12%
20%
15%
30%
23%
29%
20%
22%
£6,374k
£9,464k
£12,245k
Minimum Target Maximum Maximum
+ Share Price
Growth (50%)
Fixed pay Annual Bonus RSP
PSP Share Price Growth
£7,000k
£6,000k
£5,000k
£4,000k
£3,000k
£2,000k
£1,000k
£0k
£799k
100%
20%
27%
24%
31%
18% 14%
25%
19%
22%
20%
33%
22%
25%
£3,146k
£4,449k
£5,579k
Minimum Target Maximum Maximum
+ Share Price
Growth (50%)
Fixed pay Annual Bonus RSP
PSP Share Price Growth
Burberry Annual Report 2025/26158

Policy on service agreements and termination provisions
Executive Directors
The Company’s general policy on Executive Directors’ service agreements is that they operate on a rolling basis with no specific end date
and include a 12-month or less notice period both to and from the Company. The table below sets out information on service agreements
for the current Executive Directors.
Date of current
serviceagreement
Date employment
commenced
Notice period
toand from
theCompany
Joshua Schulman 14 July 2024 17 July 2024 12 months
Kate Ferry 14 March 2023 17 July 2023 12 months
Standard terms on termination
Salary, pension, benefits and allowances: Executive Directors continue to receive salary, pension/pension allowance, benefits and
cashallowances during their notice period (which will not normally exceed 12 months). Alternatively, the Company may terminate the
employment early and pay in lieu of notice, either in a lump sum or in monthly instalments. Payments in lieu of notice will be no more
thanthe salary, cash allowance and pension allowance payable for the period of notice not worked. Any such monthly payments will
bereduced to the extent the former Executive Director receives income from alternative remunerative employment as the Executive
Directorwill be required to mitigate their loss.
Annual bonus paid in cash: an executive considered to be a ‘good leaver’ may remain eligible for an annual bonus payable at the normal
time for the financial year in which they cease employment subject to achievement of bonus targets. Any bonus would normally be
pro-rated taking into account the period of time the Executive Director was in active employment during the financial year. An Executive
Director who has left employment for other reasons during the performance period or before the payment is due will normally not be
eligible to receive an annual bonus. The Committee retains discretion to vary the approach and the payment of annual bonus to leavers,
asoutlined below.
PSP awards: for an Executive Director considered to be a ‘good leaver’ before vesting, outstanding awards will normally be pro-rated
fortime and vest on the original vesting dates subject to performance on the original vesting date. Good leavers’ awards will normally
berequired to remain subject to post-vesting holding periods and leaving employment will not normally impact shares already subject
toa holding period. For an Executive Director who leaves for any other reason, any unvested PSP awards will normally lapse in full.
TheCommittee retains discretion to vary the approach and the extent to which awards vest for leavers, as outlined below.
RSP awards: for an Executive Director considered to be a ‘good leaver’ before vesting, outstanding awards will normally be pro-rated
fortime over the vesting period and vest on the original vesting dates subject to the performance underpins. Good leavers’ awards will
normally be required to remain subject to post-vesting holding periods and leaving employment will not normally impact shares already
subject to a holding period. For an Executive Director who leaves for any other reason, any unvested RSP awards will normally lapse
infull. The Committee retains discretion to vary the approach and the extent to which awards vest for leavers, as outlined below.
Good leavers include leaving the Company on retirement, redundancy, ill health, as a result of death in service or in other circumstances
determined by the Committee.
Other: reasonable disbursements (for example, legal or professional fees, relocation/repatriation costs) may be paid. Any other employee
share plan entitlements (such as under all-employee share incentives) will be dealt with in accordance with the rules of the relevant plan
and the Committee may exercise the discretions provided under those plans.
Discretion: the Committee retains discretion to approve payments to individuals based on individual circumstances and performance
while in office or employment and potential claims under applicable law. In applying any such discretion, the Committee will make any
decisions by considering the specific circumstances and performance of the individual and the best interests of shareholders and those
of the remaining employees, including Executive Directors. Where awards are subject to performance conditions/underpins, these would
normally be tested at the end of the relevant period(s), unless the Committee determined otherwise, and any award which is allowed
tovest would normally be pro-rated for time in office or employment, unless the Committee determined otherwise.
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26 159

Corporate events
Upon a change in control of the Company before the vesting date, outstanding PSP or RSP awards will, unless the Committee determines
otherwise, be pro-rated for time over the vesting period of the award and vest, at the point of change in control, subject to the performance
conditions or underpins. Alternatively, PSP or RSP awards can be exchanged for equivalent awards over shares in the acquiring company.
The Committee can also allow full or partial vesting on a demerger, special dividend, distribution in specie or if the participant is relocated
in circumstances which would give rise to unfavourable tax treatment. Malus, clawback and holding period requirements will cease
toapply following a change of control.
Any other employee share plan entitlements (such as under all-employee share incentives) will be dealt with in accordance with the rules
of the relevant plan and the Committee may exercise the discretions provided under those plans.
Non-Executive Directors
The Non-Executive Directors serve under letters of appointment with the Company. Non-Executive Directors may continue to serve subject
to annual re-election by shareholders at each AGM of the Company, subject to six months’ notice by either party. There are noprovisions
for compensation for loss of office in the letters of appointment.
Development of 2026 Directors’ Remuneration Policy
In developing and reviewing the 2026 Directors’ Remuneration Policy, the Committee is mindful of the views of shareholders and issensitive
to the relativities of arrangements for Executive Directors to those for employees more generally.
The Committee proactively engages shareholders when considering any significant changes to remuneration for Executive Directors
andthe feedback received is taken into account in finalising proposals. The Committee also listens to and takes into consideration
investor views more generally throughout the year. In developing the 2026 Directors’ Remuneration Policy, the Committee undertook
aconsultation with shareholders to understand their feedback in relation to the changes proposed and made a number of refinements
asset out in the letter from the Chair of the Committee.
Employees are able to communicate their views internally on any topic including the Directors’ Remuneration Policy by using the Burberry
internal communications platform (Viva Engage) or by raising questions at global and functional town halls. They are also able to refer
tothe Burberry Resolution Hub and the Burberry Confidential whistleblowing line which provide an independent method for speaking
upabout serious concerns. Our regular colleague engagement and the valuable two-way dialogue we have developed with our Global
Workforce Advisory Forum provide the Committee with important insights into employees’ views on the overall remuneration framework
and how this aligns to the Directors’ Remuneration Policy. However, given the scale, geographic spread and diversity of roles of Burberry’s
employees, the Committee does not proactively consult with employees specifically on the Directors’ Remuneration Policy. Inaddition,
many Burberry employees are shareholders through participation in the Sharesave and Free Share Plans and they, like other
shareholders, are able toexpress their views on Directors’ remuneration at each general meeting.
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26160

Corporate Governance Statement | Directors’ Remuneration Report
ANNUAL REPORT ON REMUNERATION
FY 2025/26 total single figure remuneration for Executive Directors (audited)
The table below sets out the single figure of total remuneration received or receivable by the Executive Directors in respect of FY 2025/26
(and the prior financial year). The subsequent sections detail additional information for each element of remuneration.
Salary
£’000
Allowances
and benefits
£’000
Pension
£’000
Bonus
£’000
Burberry
Share Plan
(BSP)
£’000
All-employee
share plans
£’000
Total
£’000
Total fixed
remuneration
£’000
Total variable
remuneration
£’000
Executive Directors
Joshua Schulman
Year to 28 March 2026 1,195 369 120 2,340 – – 4,024 1,684 2,340
Year to 29 March 2025
1
846 425 85 1,200 – – 2,556 1,356 1,200
Kate Ferry
Year to 28 March 2026
2
672 35 67 1,316 457 – 2,547 774 1,773
Year to 29 March 2025
3
672 30 67 135 – – 904 769 135
1. Remuneration in the table above in relation to Joshua Schulman for the year to 29 March 2025 relates to his period of employment as CEO from 17 July 2024.
2. The value in the ‘BSP’ column in respect of FY 2025/26 represents the vesting of the CFO’s 2023 BSP award. As the award will only vest in July 2026, the value has been calculated
bymultiplying the number of shares which will vest as set out on page 166 by the three-month average share price to the end of the financial year (£11.69), plus the value of dividend
equivalents on these shares. The award was granted based on a share price of £21.8217 and therefore none of the amount relates to share price appreciation.
3. The value shown in the ‘allowances and benefits’ column for Kate Ferry for the year to 29 March 2025 has been reduced by £3,000 to reflect the fact that no reimbursement was made
to her in respect of this amount during FY 2024/25.
Salary (audited)
The table below details annual salaries as at 28 March 2026 and those that will apply from 1 July 2026. Taking into account business
performance and the broader shareholder experience, the Committee determined that annual salaries for the Executive Directors will
increase by 3% from 1 July 2026. The budgeted salary increase for our UK workforce for 2026 was 3%.
As at
28 March 2026
As at
1 July 2026 % change
Joshua Schulman £1,200,000 £1,236,000 3%
Kate Ferry £675,000 £695,250 3%
Pension (audited)
The pension cash allowances for the Executive Directors are aligned to the maximum employer pension contribution available to the majority
of the UK workforce at 10% of base salary.
No Director has a prospective entitlement to receive a defined benefit pension.
Allowances and benefits (audited)
The table below details the cash allowances and non-cash benefits received by the Executive Directors during FY 2025/26 in accordance
with the Directors’ Remuneration Policy and as disclosed in the single figure table.
FY 2025/26 (£’000)
Cash
allowance
Private
medical
insurance
Life
assurance
Long-term
disability
insurance
Tax and
legal advice
Relocation
costs
1
Executive Directors
Joshua Schulman – 24 12 2 32 299
Kate Ferry 20 6 3 6 – –
1. In connection with his relocation from New York to London, Joshua Schulman is eligible to receive a housing allowance of £25,000 per month (gross) for up to 18 months starting
inNovember 2024. Thevalue shown in the ‘relocation costs’column for Joshua reflects 12 months of this allowance. The remainder will be included intheFY 2026/27 Directors’
Remuneration Report as appropriate.
2. There were no changes to benefits policies during the year.
Burberry Annual Report 2025/26 161

Corporate Governance Statement | Directors’ Remuneration Report
Annual bonus for FY 2025/26 (audited)
Both Executive Directors were eligible for a maximum bonus of 200% of base salary. The annual bonus for FY 2025/26 was based 75%
onGroup adjusted operating profit performance (at FY 2024/25 CER) and 25% on strategic objectives including strategic, operational
and environmental and social measures.
Adjusted operating profit performance
The table below sets out the targets and the performance achieved for FY 2025/26 in relation to the Group adjusted operating profit
performance measure:
FY 2025/26 Group adjusted operating profit targets
FY 2025/26
Group adjusted
operating profit
achieved (CER
1
)
Maximum bonus
opportunity
(% of salary)
Threshold
(25% of
maximum)
Target
(50% of
maximum)
Maximum
(100% of
maximum)
Joshua Schulman
200% £112.5m £125.0m £134.4m £166m
Kate Ferry
1. This measure removes the effect of changes in exchange rates.
Adjusted operating profit for bonus purposes is calculated using the average exchange rates of FY 2024/25 and on a pro forma basis.
Details of pro forma results for FY 2025/26 are set out on page 28.
Based on the adjusted operating profit delivered, this element of the annual bonus will pay out at 100% of maximum.
CEO’s strategic performance
In its assessment of the CEO’s performance for the year, the Committee considered Joshua’s achievements against the following
strategic objectives:
• Accelerating momentum in our core product categories: a key part of the Burberry Forward strategy has been to align our product
focus to our core categories. This year, Joshua has driven strong growth in our hero categories, asserting our authority in outerwear
and scarves, both of which grew by double digits in the second half. Joshua has continued to bring discipline in the number of
newproducts in our future seasonal assortments while balancing this with investments in deliberate opportunities for future growth.
Joshuahas reduced seasonal buys, bringing scarcity back to the inventory model, demonstrated with gross finished goods inventory
declining by13%versus last year at CER.
• Evolving our marketing strategy: Joshua’s focus on our Timeless British Luxury brand expression has reinforced our authority in
ourcoreproduct categories and delivered coherent storytelling with cultural relevance for global audiences and an expanded talent
ecosystem. We have continued to see positive brand momentum throughout FY 2025/26 with a number of successful marketing
campaigns including ‘Back to the City’, the third chapter of ‘It’s Always Burberry Weather: Postcards from London’, our 2025 holiday
campaign, ‘’Twas The Knight Before...’, and our highly visible festive collaboration with Bloomingdale’s. The Winter 2026 runway
collection in February further fuelled brand momentum as classic house codes appeared across the collection and press coverage
pointed to the renewed focus on heritage outerwear as both the creative and commercial backbone of Burberry. As we entered our
170
th
anniversary year, we launched our ‘The Trench, Portraits of an Icon’ campaign in March 2026. Joshua’s actions also resulted
inamore targeted marketing campaign in honour of the Year of the Horse, with a dedicated capsule collection launched in parallel.
• Enhancing our store productivity: Joshua has increased focus across our stores in creating warmth and desire through increased
product density, prioritising our core product categories in high-impact zones of our stores and cross-category merchandising.
Wehave successfully rolled out 200 Scarf Bars and increased our offer of monogramming and personalisation services across
ourknitwear and capes.
• The Burberry Forward strategy has been well received by our customers. Consistent execution of our strategy to place the customer
atthe centre of everything we do through evolved brand storytelling, visual merchandising in stores and online and continued focus
onour core categories has resulted in a return to profitable comparable sales growth during FY 2025/26.
• Delivering operating costs initiatives: in partnership with the CFO, Joshua delivered on the announced cost savings programme
through streamlining organisational structures, optimising UK manufacturing operations and reassessing partnerships. We have
unlocked £80 million in cost savings in FY 2025/26, with combined annualised savings of £100 million expected by FY 2026/27.
Burberry Annual Report 2025/26162

• Driving our People strategy: Joshua has placed a strong emphasis on evolving our organisation and leadership and reigniting a
high-performance culture in order to support the delivery of the Burberry Forward strategy. We saw positive momentum in engagement
and a strong connection to the brand across the organisation with an increased sense of optimism during a period of organisational
change. Joshua has further enhanced his executive team during FY 2025/26, promoting six existing senior leaders into Executive
Committee roles. This commitment to supporting internal talent has been reflected throughout the organisation, with 294 internal
promotions and 640 lateral moves across the business during the year, together with enhancing our talent reviews andsimplifying
ourperformance framework.
• Continuing our focus on sustainability: Joshua has driven ongoing focus on our sustainability agenda, leading the business in its
continued progress towards net zero and reducing our Scope 1 and 2 emissions. In partnership with the CFO and other key leaders
across the business, Joshua made strong progress in leading our efforts to reduce and reuse excess fabrics across our value chain
andto reduce the proportion of goods being transported by air freight compared to FY 2024/25, driving down both costs and emissions.
As we exited FY 2025/26, the business was well positioned for growth, despite ongoing geopolitical and macroeconomic uncertainty.
Based on its assessment of Joshua’s performance against the strategic measures and taking into consideration the shareholder
experience in the round, the Committee determined that this element will pay out at 90% of maximum.
CFO’s strategic performance
In its assessment of the CFO’s performance for the year, the Committee considered Kate’s achievements against the following
strategicobjectives:
• Managing our inventory model: Kate has worked in partnership with the CEO to drive scarcity in the inventory model, reducing
seasonal buys and increasing internal focus on inventory targets. This has resulted in a reduction of gross finished goods inventory
by13% versus last year at CER.
• Financial stability and cash management: throughout the year, Kate was fundamental in bringing back financial stability to the business.
This was achieved through stronger operational leverage as gross margin improved by 530 basis points at CER and costs remained flat.
Kate has delivered strong cash management for the business, resulting in an improvement of 120% in the Group’s free cash flow
generation compared with FY 2024/25 and a net debt leverage of 1.6x, down from 2.3x in FY 2024/25.
• Corporate funding: we repaid our £300 million sustainability bond in September 2025 and returned to a net cash position by the year
end. We also stabilised our investment grade Moody’s credit rating during the year.
• Enhancing store productivity: Kate has supported the delivery of a targeted store investment programme, ensuring a strong return
oninvestment and resulting in improved store productivity with revenue per square metre having increased year-on-year.
• Delivering operating cost initiatives: in partnership with the CEO, Kate led the design and delivery of the announced cost savings
programme which is expected to result in combined annualised savings of £100 million by FY 2026/27. Within this programme, Kate
also delivered significant cost-saving initiatives acrossthe Finance function.
• Driving our People strategy: Kate has brought greater organisational clarity and simplicity to the Finance function, further stabilising
her leadership team during a period of organisational change. Through Kate’s stewardship, progress was made under our Reignite
aHigh-performance Culture pillar as engagement and leadership across the Finance function improved over the year.
• Continuing our focus on sustainability: in partnership with the CEO and other key leaders across the business, Kate has driven ongoing
focus on our sustainability agenda, leading the business in its continued progress towards net zero and reducing our Scope 1 and 2
emissions. This has resulted in strong progress in leading our efforts to reduce and reuse excess fabrics across our value chain and
toreduce the proportion of goods being transported by air freight compared to FY 2024/25, driving down both costs and emissions.
Based on its assessment of Kate’s performance against the strategic measures and taking into consideration the shareholder experience
in the round, the Committee determined that this element will pay out at 90% of maximum.
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26 163

Annual bonus outcome for FY 2025/26
Considering the performance delivered, the Committee determined that for FY 2025/26 the CEO would receive an annual bonus
of£2,340,000and the CFO would receive an annual bonus of £1,316,250, representing 97.5% of their maximum bonus opportunity.
TheCommittee considered that this level of bonus payout would be appropriate taking into account their personal performance, the wider
business performance and the broader shareholder experience.
Under the Directors’ Remuneration Policy, the Executive Directors are required to invest 50% of any net bonus earned into Burberry
shares until their shareholding guideline is met. Joshua and Kate will therefore invest 50% of their net annual bonus for FY 2025/26
intoBurberry shares.
Annual bonus for FY 2026/27
For FY 2026/27 the Executive Directors will be eligible for a maximum bonus of 200% of salary. The annual bonus for FY 2026/27 will
bebased 75% on Group adjusted operating profit performance (at FY 2025/26 CER) and 25% on strategic measures aligned to the
Burberry Forward strategy, including key sustainability measures.
The adjusted operating profit targets are considered to be commercially sensitive and will be disclosed in the Directors’ Remuneration
Report 2026/27.
The strategic objectives for FY 2026/27 for the CEO and the CFO will include measures linked to Burberry Forward. When assessing
performance in this area the Committee will consider key measures linked to the strategy, including customer, brand, product,
distribution, culture, sustained growth and sustainability. For each strategic measure the Committee will determine the payout in the
round, taking into account our progress during the year. Details of the progress achieved and the Committee’s determination of bonus
outcomes will be provided in the Directors’ Remuneration Report 2026/27.
Under the Directors’ Remuneration Policy, the Executive Directors will be required to invest 50% of any net bonus earned into Burberry
shares until their shareholding guideline is met.
Long-term incentive plan awards
The following section sets out details of:
• 2023 BSP awards vesting based on performance to FY 2025/26
• 2025 BSP awards granted during FY 2025/26
• 2026 BSP awards to be granted during FY 2026/27, comprising both PSP and RSP awards
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26164

Corporate Governance Statement | Directors’ Remuneration Report
2023 BSP awards vesting subject to performance underpins to FY 2025/26 (audited)
Joshua Schulman was not in role when the 2023 BSP awards were granted and therefore no BSP award will vest for him based
onperformance to FY 2025/26.
Kate Ferry was granted a 2023 BSP award which will vest on 27 July 2026, followed by a two-year holding period. The CFO’s 2023 BSP
award was subject to performance underpins to FY 2025/26 as set out in the table below:
Underpin Details Achievement Considerations
Revenue
The level of Total Revenue at CER for the
financial year which precedes the year
ofvesting being at least £3,200 million
£2,472 million • Context of financial performance, including
thatthe underpins were set under the previous
strategy and, in addition, that there has been
aslowdown in global luxury demand since 2023.
• Accountability of the current executive
management team, including that the BSP
underpins were developed prior to Kate’s
appointment as CFO and based on theprevious
strategy and budgets.
• Encouraging recent performance onrevenue
and ROIC since the launch of Burberry Forward
in November 2024.
• Recent performance on revenue andROIC:
• Revenue: total Group revenue was flatversus
FY 2024/25 at CER, an improvement versus
the 15% decline theprevious year, with
comparable sales up 2% year-on-year.
TheGroup also delivered higher quality
revenue across all channels and regions,
aswereturned to a shorter, shallower and
more discrete markdown period.
• ROIC: Group ROIC was 5.5% inFY 2025/26,
representing a year-on-year improvement
of4.5% points, driven by an improvement
inprofitability, reductions inborrowings
andlease debt.
ROIC*
The level of Group ROIC at reported
exchange rates for the financial year
which precedes the year of vesting being
at least 1% above the Group’s WACC
inthe year of vesting (the Group’s WACC
was c.10% at the time of award)
5.5% (the
Group’s WACC
was c.10.5%
atend
ofFY 2025/26)
Brand and
sustainability
Reasonable progress having been
achieved over the vesting period inrespect
of our strategy to elevate ourbrand and
tobuild amore sustainable future:
• Brand: when assessing the brand
underpin the Committee will consider
performance against a range of
relevant brand KPIs. Thismay include
full-price sales, outerwear and leather
goods sales and progress onbrand
elevation, but it may also include
otherrelevant metrics. These metrics
areallconsidered to be aligned
withour strategy of elevating the
brand togenerate long-term value
forshareholders.
• Sustainability: when assessing the
sustainability underpin the Committee
will consider whether reasonable
progress has been delivered against
our sustainability and carbon reduction
goals to reduce Scope 3 emissions by
46% by 2030 and to become Climate
Positive by 2040.
Achieved • Brand: following the launch ofBurberry Forward
inNovember 2024, in partnership withthe CEO,
Kate played a key role indelivering aseries of
actions to stabilise the business andposition
thebrand for future growth underourTimeless
British Luxury expression, including helping to
reduce our inventory andreducing the cost base
of the business. Our brand expression has
gained momentum, delivering strong growth
inour core product categories through coherent
storytelling with cultural relevance for global
audiences utilising an expanded talent ecosystem.
• Sustainability: Burberry made good progress
against its sustainability and carbon reduction
goals across the three-year period, delivering
a14.2% reduction in Scope 1 and 2 emissions
between FY 2023/24 (when total emissions
(market based) were 1,667 tonnes CO
2
e, as set
out on page 58 of the Annual Report 2024/25)
and FY 2025/26 (when total emissions (market
based) were 1,430 tonnes CO
2
e, as set out on
page 58). Targeted operational, sourcing and
supplier initiatives resulted in year-on-year
reductions in Scope 3 emissions across
thesame period.
* In line with the Group’s approach to the calculation of ROIC, this is calculated as Adjusted Group ROIC.
Burberry Annual Report 2025/26 165

As the Company achieved the brand and sustainability underpins but did not meet the revenue and ROIC underpins, the Committee
carefully considered its underpin assessment frameworkto determine whether it was appropriate to scale back the level of the CFO’s
payout. In addition to the considerations set out on pages 143, 144 and 165, the Committee also considered the strong alignment between
the value of Kate’s award and the experience of shareholders over the period since grant through share price movements, the impact
ofother Committee decisions and performance outcomes onKate’s remuneration in recent years, and the significant contribution Kate
has made since her appointment, including her key role inthedevelopment and initial delivery of Burberry Forward.
Taking into account the considerations above and the views expressed by some of our shareholders, the Committee determined to scale
back the vesting of the CFO’s 2023 BSP award by 20%. The Committee considers this an appropriate reduction that balances the fact
that two underpins have not been met with the mitigating factors set out on pages 143, 144 and 165.
As a result, Kate Ferry’s 2023 BSP award will vest at 80% in July 2026 (37,118 shares, plus additional shares in respect of dividend
equivalents payable on the award) with a further holding period applying for two years.
2025 BSP awards granted during FY 2025/26 (audited)
The Committee granted a 2025 BSP award of 162.5% of salary to both Joshua Schulman and Kate Ferry on 31 July 2025 in line with
theDirectors’ Remuneration Policy approved by the shareholders at the 2023 AGM.
The table below summarises the BSP share awards granted to the Executive Directors during FY 2025/26.
Type of award Basis of award Shares awarded
Face value at
grant (£’000) Performance underpin period
Joshua Schulman BSP share award 162.5% of salary 144,658 £1,950 3 years to 1 April 2028
Kate Ferry BSP share award 162.5% of salary 81,370 £1,097 3 years to 1 April 2028
2025 BSP awards granted to the Executive Directors will vest in full three years from the grant date, subject to the performance underpins
outlined below. The awards will be subject to a two-year holding period so that the time horizon before any sale of shares (except to cover
any tax liabilities arising from the award) is five years. The number of shares that vest will include additional shares inrespect of any
dividend equivalent payable on the award.
The face value of each award was calculated using the three-day average price prior to the date of grant (£13.48), which was the price
used to determine the number of shares awarded.
2025 BSP awards are subject to the following performance underpins:
2025 BSP award
performance underpins Details
Revenue The level of Total Revenue at CER for FY 2027/28 being at least £2,600 million
ROIC* Reasonable progress having been achieved over the vesting period in respect of the Group Return
onInvested Capital, taking into account the Group’s Weighted Average Cost of Capital (the Group’s
WACC was c.10.5% at the time of award)
Brand and sustainability
strategies
Reasonable progress having been achieved over the vesting period in respect of our brand
andsustainability strategies:
• Brand: the Committee will consider progress against a basket of brand and strategy related KPIs
which are aligned to the Burberry Forward strategy
• Sustainability: the Committee will consider whether reasonable progress has been achieved
against our sustainability and carbon reduction goals
If the Company does not meet one or more of the performance underpins outlined above, then the Committee would consider whether
itwas appropriate to scale back the level of payout under the BSP award. The intention of the performance underpins is to provide a
‘safeguard’ to ensure that the BSP awards do not pay out if the Company has underperformed and vesting is not justified; the Committee
will take this intention into account when assessing the underpins.
In addition to the underpins described above, the Committee also retains the discretion to adjust the vesting outcome if it is not
considered to be reflective of the underlying financial or non-financial performance of the business or the performance of the individual,
where underpins are no longer considered appropriate or where the vesting outcome is not considered appropriate in the context
oftheexperience of shareholders or other stakeholders.
Corporate Governance Statement | Directors’ Remuneration Report
* In line with the Group’s approach to the calculation of ROIC, this is calculated as Adjusted Group ROIC.
Burberry Annual Report 2025/26166

2026 BSP awards to be granted during FY 2026/27
As set out in the letter from the Chair of the Committee on page 145, subject to shareholder approval for the renewal of the Directors’
Remuneration Policy, the Committee intends to grant PSP and RSP awards to the Executive Directors in July 2026.
2026 PSP awards
The Committee intends to grant a 2026 PSP award of 300% of salary to the CEO and of 175% of salary to the CFO. Awards will be subject
to a three-year performance period ending in FY 2028/29, followed by a two-year holding period so that the total time horizon before any
sale of shares (except to cover any tax liabilities arising from the award) is five years. The number of shares that vest will include
additional shares in respect of any dividend equivalent payable on the award.
In developing the PSP structure, the Committee has sought to ensure that the design avoids unnecessary complexity, retains a strong link
between executive reward and sustainable value creation, and encourages the delivery of strategic priorities under Burberry Forward.
Awards will be subject to the following performance measures:
• Revenue is one of Burberry’s KPIs and is a key part of the Burberry Forward strategy. This ultimately measures theappeal of the
Burberry brand to our customers.
• ROIC rewards participants for efficient profit generation and balances the use of revenue as a top-line measure. Capital efficiency
isone of Burberry’s KPIs and a key part of the Burberry Forward strategy.
• Relative TSR is a commonly used measure both in the UK and among our luxury peers. It complements the use of the two financial
measures by aligning the reward of participants with the experience of our shareholders and only rewards outperformance of our
closestsector peers.
In setting targets for each measure, the Committee has been guided by the principle of setting stretching three-year targets to incentivise
the Executive Directors to deliver (and, for maximum performance, to exceed) our long-term strategic ambitions. Targets have been
calibrated taking into account a range of factors including: (i) our internal four-year financial plan; (ii) analyst estimates for Burberry for
thenext three years; (iii) historic performance; and (iv) independent expectations for growth in the luxury market. In line with best practice,
achieving budget/consensus over the next three years would result in a partial vesting of the PSP award between threshold and
maximum, with maximum vesting requiring the delivery of truly exceptional performance.
The following performance measures will apply to the 2026 PSP awards:
2026 PSP award
performance measures Weighting
Threshold
(25% of maximum)
Maximum
(100% of maximum)
Revenue
2
One-third £2,650 million £3,100 million
ROIC
3
One-third 13% 20%
Relative TSR
4
One-third Median Upper quartile
1. Vesting will be calculated on a straight-line basis between threshold and maximum.
2. Total revenue will be measured at CER for FY 2028/29.
3. Group ROIC will be measured at reported exchange rates for FY 2028/29. In line with the Group’s approach to the calculation of ROIC, this is calculated as Adjusted Group ROIC.
4. Relative TSR will be measured against the following peer group: Brunello Cucinelli, Canada Goose, Capri Holdings, Hermès, Hugo Boss, Kering, LVMH, Moncler, Prada, PVH Corp.,
RalphLauren Corporation, Richemont, Salvatore Ferragamo, Tapestry Inc and Zegna Group.
The threshold revenue target is equivalent to an annual growth rate of c.3% over the next three years which the Committee considers
appropriately stretching to warrant partial vesting for this measure. The maximum revenue target is equivalent to an annual growth
rateofc.9% over the next three years. This requires Burberry to exceed our ambition of returning to revenues of more than £3 billion
andrepresents significant outperformance of the expected growth rate for the luxury market over that period. In setting the targets,
theCommittee has also been mindful of Burberry’s historic revenue performance.
Notwithstanding the progress made on Group ROIC during FY 2025/26, achieving threshold will require ROIC to more than double over
the next three years and achieving maximum will require ROIC to more than treble. Achieving the maximum target of 20% would result
inBurberry returning to historic high levels which the Committee considers to be an appropriately stretching target for full vesting
fortheROIC measure.
For the relative TSR measure the Committee has adopted market practice for a UK-listed company with full vesting requiring upper quartile
performance against our luxury peer group. The Committee considers this to be appropriately stretching, particularly recognising that
itwill be more challenging to outperform those luxury peers whose recovery is less well progressed than Burberry’s.
The Committee considers the target ranges for all three measures to be appropriate and achieving the maximum outcome for each
measure would represent exceptional performance and demonstrable evidence of the success of the Burberry Forward strategy over
thenext three years.
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26 167

Corporate Governance Statement | Directors’ Remuneration Report
In addition to the performance measures described above, the Committee also retains the discretion to adjust the vesting outcome
ifitisnot considered to be reflective of the underlying financial or non-financial performance of the business or the performance
oftheindividual, where measures are no longer considered appropriate or where the vesting outcome is not considered appropriate
inthe context of the experience of shareholders or other stakeholders.
2026 RSP awards
The Committee intends to grant 2026 RSP awards of 150% of salary to the Executive Directors.
The awards will vest in full three years following the date of grant, subject to the performance underpins. The awards will be subject to a
two-year holding period so that the total time horizon before any sale of shares (except to cover any tax liabilities arising from the award)
is five years for the entire award. The number of shares that vest will include additional shares in respect of any dividend equivalent
payable on the award.
If the Company does not meet one or more of the performance underpins outlined below, the Committee would consider whether it was
appropriate to scale back the level of payout under the RSP award. The Committee would retain discretion to determine the appropriate
level of scale-back.
The Committee has reviewed the performance underpins and determined that the underpins that applied to previous RSP awards
continue to reflect a good overall balance of safeguarding the financial stability of the business, delivery of the strategy and long-term
value of the brand.
The following performance underpins will apply to the 2026 RSP awards:
2026 RSP award
performance underpins Details
Revenue The level of Total Revenue at CER for FY 2028/29 being at least £2,600 million
ROIC* Reasonable progress having been achieved over the vesting period in respect of the Group Return
onInvested Capital, taking into account the Group’s Weighted Average Cost of Capital (the Group’s
WACC is currently c.10.5%)
Brand and sustainability
strategies
Reasonable progress having been achieved over the vesting period in respect of our brand
andsustainability strategies:
• Brand: the Committee will consider performance against a range of brand relevance KPIs which
arealigned to the Burberry Forward strategy. These may include full-price sales and outerwear
sales and other metrics linked to brand relevance, but they may also include other relevant metrics
that demonstrate long-term value creation
• Sustainability: the Committee will consider whether reasonable progress has been achieved
against our sustainability and carbon reduction goals
In addition to the performance underpins described above, the Committee also retains the discretion to adjust the vesting outcome
ifitisnot considered to be reflective of the underlying financial or non-financial performance of the business or the performance
oftheindividual, where underpins are no longer considered appropriate or where the vesting outcome is not considered appropriate
inthe context of the experience of shareholders or other stakeholders.
* In line with the Group’s approach to the calculation of ROIC, this is calculated as Adjusted Group ROIC.
Burberry Annual Report 2025/26168

Payments to past Directors
There were no payments to past Directors above a de minimis limit of £3,000 during the year.
Share interests and shareholding guideline (audited)
For FY 2025/26, Executive Directors were subject to a shareholding guideline of 300% of base salary. Subject to shareholder approval
ofthe 2026 Directors’ Remuneration Policy, the shareholding guideline for the CEO will be increased to 400% of base salary.
There is no specific timeline in which the shareholding guideline must be achieved. However, there is an expectation that Executive
Directors make annual progress towards their guideline, regardless of any annual bonus paid or shares vesting. In line with the Investment
Association best practice guidance, our shareholding guideline permits any incentive shares that have vested but are unexercised or that
have not yet vested but are not subject to any further performance conditions/underpins to count towards the shareholding requirement
at 50% of their face value. Other members of the Executive Committee are also subject to a shareholding guideline.
The following table sets out the total beneficial interests of the Executive Directors (and their connected persons) in ordinary shares
ofBurberry Group plc as at 28 March 2026, as well as their progress against the shareholding guideline. The table also summarises
conditional interests in share or option awards, with further detail of the underlying awards in the subsequent table.
Based on the three-month average share price to 28 March 2026 (our standard approach to assessing the guideline), neither Joshua
Schulman nor Kate Ferry had met the guideline. They have both demonstrated progress towards their guideline since joining Burberry,
including through the application of 50% of their net bonus payments towards the purchase of Burberry shares.
Beneficially held shares Share/option awards
Number of
shares
beneficially
owned as at
28 March 2026
1
As % of salary
2
Shareholding
guideline
(% of salary)
3
Guideline
metas at
28 March 2026
Vested but
unexercised
awards
Unvested
– subject to
performance
conditions
(recruitment
award)
Unvested
– subject to
performance
underpins (BSP
awards)
Unvested
– subject to
continued
employment
4
Executive Directors
Joshua Schulman 34,836 33.9% 300% No 0 392,366 357,189 92
Kate Ferry 11,621 20.1% 300% No 0 0 238,121 1,609
1. There have been no changes in the period up to and including 13 May 2026.
2. Based on the three-month average share price as at 28 March 2026 of £11.69.
3. Subject to shareholder approval of the 2026 Directors’ Remuneration Policy, the shareholding guideline for the CEO will be increased to 400% of base salary.
4. In line with the shareholding guideline, only 50% of the face value of these shares counts towards the Executive Director’s shareholding guideline calculation (other than shares under
the all-employee Share Incentive Plan (SIP), which are held beneficially and count towards the Executive Director’s shareholding guideline calculation). This also includes Sharesave
options (which do not count towards the Executive Director’s shareholding guideline calculation).
As former Executive Directors, Jonathan Akeroyd and Julie Brown are required to comply with Burberry’s post-employment shareholding
guideline in respect of share awards that vested on or after the date of the AGM in July 2020. Under this guideline Jonathan is expected
to retain a shareholding of 174,684 shares until 15 July 2026. As at 28 March 2026, Jonathan complied with his obligation. Julie was
expected to retain a shareholding of 10,350 shares until 1 April 2025 and complied with this obligation at that date.
The following table provides further underlying detail on the unvested awards at 28 March 2026 included in the table above.
Executive Director Type of award Date of grant
Maximum number
of shares/options Performance period Vesting date
5
Joshua Schulman 2024 BSP
2
30 July 2024 212,531 3 years to 27 March 2027 30 July 2027
2025 BSP
3
31 July 2025 144,658 3 years to 1 April 2028 31 July 2028
Recruitment award
4
19 December 2024 392,366 3 years to 17 July 2027 17 July 2027
SIP 12 December 2024 51 N/A 12 December 2027
SIP 11 December 2025 41 N/A 11 December 2028
Kate Ferry 2023 BSP
1
27 July 2023 46,398 3 years to 28 March 2026 27 July 2026
2024 BSP
2
30 July 2024 110,353 3 years to 27 March 2027 30 July 2027
2025 BSP
3
31 July 2025 81,370 3 years to 1 April 2028 31 July 2028
Sharesave
6
14 December 2023 1,484 N/A 1 February 2027
SIP 14 December 2023 33 N/A 14 December 2026
SIP 12 December 2024 51 N/A 12 December 2027
SIP 11 December 2025 41 N/A 11 December 2028
1. The performance underpins for the 2023 BSP award are set out on page 132 of the Annual Report 2023/24.
2. The performance underpins for the 2024 BSP award are set out on page 146 of the Annual Report 2024/25.
3. The performance underpins for the 2025 BSP award are set out on page 166.
4. The performance conditions for the recruitment award granted to Joshua Schulman are set out on pages 147 and 148 of the Annual Report 2024/25.
5. Vested BSP awards may not normally be sold until five years from the date of grant, other than to meet tax liabilities.
6. On 14 December 2023, Kate Ferry was granted a Sharesave option over 1,484 shares at an option price of £12.50 per share.
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26 169

Director remuneration relative to employees
The table below summarises the change in each Director’s base salary/fee, benefits and bonus received for FY 2025/26, FY 2024/25,
FY 2023/24, FY 2022/23 and FY 2021/22 compared to the prior year. The regulations require disclosure of the same data for employees
of the parent company. However, Burberry Group plc does not have any employees and therefore the table below includes data in respect
of the UK employee population for reference.
Year-on-year
change (%)
Salary/fee Allowances and benefits Bonus
FY
2021/
22
FY
2022/
23
FY
2023/
24
FY
2024/
25
FY
2025/
26
FY
2021/
22
FY
2022/
23
FY
2023/
24
FY
2024/
25
FY
2025/
26
FY
2021/
22
FY
2022/
23
FY
2023/
24
FY
2024/
25
FY
2025/
26
Executive
Directors
Joshua
Schulman – – – N/A -1% – – – N/A -13.3% – – – N/A 95%
Kate Ferry – – N/A 0% 0% – – N/A -21.8% 5.4% – – N/A 11.1% 875%
Non-
Executive
Directors
Gerry
Murphy 5.3% 0% 3% 0% 0% -21.4% -75.4% 712.4% -2.5% -28.0% – – – – –
Alessandra
Cozzani – – N/A 0% 0% – – N/A -11.5% 111.7% – – N/A – –
Ron Frasch 5.3% 0% 3% 0% 0% N/A 171.1% 64.4% -40.3% 97.2% – – – – –
Danuta
Gray N/A 25.1% 17% 0% 0% N/A 1,267.2% 71.7% 65% 94.6% N/A – – – –
Stella King – – – N/A N/A – – – N/A N/A – – – – N/A
Orna
NíChionna 3.6% -0.9% -10.4% 0% 0% -21.7% 96.2% 20.8% -86% 948.6% – – – – –
Alan
Stewart – N/A 34.5% 9.5% 0% – N/A 3.7% -47.4% 399.6% – N/A – – –
Former
Directors
Fabiola
Arredondo 5.3% 0% 3% 0% 0% N/A N/A -5.8% 23.4% -36.8% – – – – –
Sam
Fischer 5.3% 0% 3% 0% 0% N/A 1,453.6% -33.2% 48.1% -49.7% – – – – –
Antoine
deSaint-
Affrique 0% 0% 3% 0% 0% N/A 155.2% 0.4% 2.8% -57.0% – – – – –
UK
Employees 0% 4% 4% 4% 3.3% 0% 0% 0% 0% 0.0% 233.3% -48% -85.6% -100% N/A
1. The comparator group includes all UK employees. As noted above, Burberry Group plc does not have any employees and therefore this group has been chosen to align with
thelocationof the Executive Directors and with the pay ratio reporting. For the comparator group of employees, the year-on-year salary changes include the annual salary review
inJulybutexclude any additional changes made in the year, for example on promotion. For FY 2021/22 benefits, the maximum employer pension contribution available to the majority
ofthe UKworkforce was increased from 6% of salary to 10% of salary with effect from 1 January 2022. The change in the value of benefits shown for the Executive Directors reflects
themarket cost of the same benefits.
2. In order to provide a meaningful comparison, the figures in the table above have been calculated on a full-year equivalent basis where Directors have served for part of the year only.
3. Where a Director was appointed during a financial year, it is not possible to calculate a percentage change for them and they are shown as N/A.
4. The Directors in role at the time voluntarily agreed to waive 20% of their salary/base fee for a three-month period between April and June 2020. This is reflected in the positive changes
shown in respect of FY 2021/22.
5. The allowances and benefits figures for FY 2020/21 for Gerry Murphy and Orna NíChionna were low due to the impact of COVID-19. In order to provide a meaningful comparison,
thepercentage change figure for FY 2021/22 was calculated relative to the allowances and benefits figure for FY 2019/20.
6. Allowances and benefits increased for Non-Executive Directors during FY 2022/23 due to the return of regular in-person meetings.
7. Orna NíChionna was appointed as Senior Independent Director with effect from 2 April 2022.
8. Danuta Gray replaced Orna NíChionna as Remuneration Committee Chair on 1 September 2022.
9. Alan Stewart was appointed as Audit Committee Chair on 12 July 2023.
10. Joshua Schulman was appointed as CEO on 17 July 2024.
11. Stella King was appointed to the Board on 1 April 2025.
12. Fabiola Arredondo, Sam Fischer and Antoine de Saint-Affrique retired from the Board on 16 July 2025.
13. Payments were not made under the annual corporate bonus plan for FY 2024/25 and therefore it is not possible to calculate a percentage change for FY 2025/26 and this is shown as N/A.
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26170

CEO pay ratios
The ratios set out in the table below compare the total remuneration of the CEO (as included in the single figure table on page 161) to the
remuneration of the median UK employee as well as the UK employees at the lower and upper quartiles. The disclosure will build up over
time to cover a rolling 10-year period.
Year Method
25
th
percentile
pay ratio
(P25)
Median
pay ratio
(P50)
75
th
percentile
pay ratio
(P75)
FY 2025/26 Option A 117:1 87:1 57:1
FY 2024/25 Option A 92:1 70:1 45:1
FY 2023/24 Option A 44:1 33:1 21:1
FY 2022/23 Option A 153:1 116:1 73:1
FY 2021/22 Option A 225:1 167:1 105:1
FY 2020/21 Option A 92:1 71:1 44:1
FY 2019/20 Option A 68:1 48:1 31:1
FY 2018/19 Option A 170:1 127:1 82:1
Notes regarding calculation
The ratios are calculated using option A in the disclosure regulations. The employees at the lower quartile, median and upper quartile
(P25, P50 and P75, respectively) were determined based on total remuneration using a valuation methodology consistent with that used
for the CEO in the single figure table on page 161. The employees were identified based on all UK employees at year end. This option was
selected on the basis that it provided the most accurate method of identifying the lower quartile, median and upper quartile employees.
The total remuneration in respect of FY 2025/26 for the employees identified at P25, P50 and P75 is £34k, £46k and £71k, respectively.
The base salary in respect of FY 2025/26 for the employees identified at P25, P50 and P75 is £31k, £34k and £64k, respectively.
The Committee considers pay ratios as one of many reference points when considering remuneration. Throughout the Group, pay
ispositioned to be fair and market-competitive in the context of the talent market for the relevant role, fairly reflecting local market data
andother relevant benchmarks (such as the UK real Living Wage). The Committee notes the limited comparability of pay ratios across
companies and sectors, given the diverse range of business models and employee population profiles which exist across the market.
A significant proportion of the CEO’s total remuneration is delivered in variable remuneration, and particularly via long-term share
incentives. In order to drive alignment with shareholders, the value ultimately received from share incentive awards is linked to long-term
share price movement. As a result, the pay ratio is likely to be driven largely by the CEO’s incentive outcomes and may therefore fluctuate
significantly on a year-to-year basis.
The pay ratio for FY 2025/26 has increased compared to the ratio for FY 2024/25. This reflects the fact that for FY 2024/25 Joshua
Schulman received a bonus of 50% of maximum, whereas for FY 2025/26 he received a bonus of 97.5% of maximum, resulting in a larger
single figure compared with FY 2024/25.
The Committee considers that the median pay ratio for FY 2025/26 and the recent trends in the pay ratios are consistent with Burberry’s
remuneration framework and reflect the variable nature of the CEO’s total remuneration. The Committee believes the pay ratio is consistent
with our pay policies in the UK.
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26 171

Relative importance of spend on pay for FY 2025/26
The table below sets out the total payroll costs for all employees over FY 2025/26 compared to total dividends and amounts paid to buy
back shares during the year. The average number of full-time equivalent employees is also shown for context.
Relative importance of spend on pay FY 2025/26 FY 2024/25
Dividends paid during the year (total) £m – 152
1
% change -100%
Amounts paid to buy back shares during the year £m – –
% change
Payroll costs for all employees £m 587 576
% change 2%
Average number of full-time equivalent employees 7,613 8,701
% change -13%
1. Dividends paid during FY 2024/25 reflect the final dividend for FY 2023/24 which was paid in August 2024.
Service agreements
The table below sets out information on service agreements for the current Executive Directors. Executive Directors are subject to annual
re-election by shareholders at each AGM of the Company.
Date of current
serviceagreement
Date employment
commenced
Notice period to
andfrom Burberry
Joshua Schulman 14 July 2024 17 July 2024 12 months
Kate Ferry 14 March 2023 17 July 2023 12 months
Non-Executive Directors serve under letters of appointment with the Company. Non-Executive Directors may continue to serve subject
toannual re-election by shareholders at each AGM of the Company, subject to six months’ notice by either party.
Malus and clawback
Annual bonus and BSP awards (comprising PSP awards and RSP awards) are subject to malus and clawback provisions as set out in
theDirectors’ Remuneration Policy. The time periods within which these provisions can be applied have been set considering the nature
of the Company’s business cycle and are in line with UK market practice in this area.
There has been no application of malus or clawback provisions in respect of the Executive Directors in the year.
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26172

£236
(136% increase)
£95
(5% decrease)
Burberry FTSE 100
2016 2017 2018 2019 2020 2021 2022 2023 2024 20262025
£
0
50
100
150
200
250
Ten-year performance graph and Chief Executive Officer’s remuneration
The following graph shows the total shareholder return (TSR) for Burberry Group plc compared to the FTSE 100 Index assuming £100
wasinvested on 31 March 2016. The FTSE 100 Index has been selected as the comparator because Burberry has been a constituent
oftheIndex for the majority of the period shown. Data is presented on a spot basis and sourced from DataStream. The table below shows
the total remuneration earned by the incumbent CEO over the same 10-year period, along with the percentage of maximum opportunity
earned in relation to each type of incentive. The total amounts are based on the same methodology as used for the single figure of total
remuneration for FY 2025/26 on page 161.
FY
2016/17
(CB)
1
FY
2017/18
(CB)
1
FY
2017/18
(MG)
1
FY
2018/19
(MG)
1
FY
2019/20
(MG)
1
FY
2020/21
(MG)
1
FY
2021/22
(MG)
1
FY
2021/22
(JA)
1
FY
2022/23
(JA)
1
FY
2023/24
(JA)
1
FY
2024/25
(JA)
1
FY
2024/25
(JS)
1
FY
2025/26
(JS)
1
Total remuneration (£’000) 3,508 1,091 6,330 4,078 1,618 2,245 1,205 4,428 4,289 1,347 446 2,556 4,024
Bonus (% of maximum) 0% 51% 51% 60% 0% 25% – – 59% 0% 0% 50% 97.5%
BSP (% of maximum) – – – – – – – – – – – – –
Legacy incentive plans (no longer in operation):
ESP (% of maximum) – 5% – 25% 0% 5.5% – – – – – – –
CIP
2
(% of maximum) 0% – – – – – – – – – – – –
RSP (% of maximum) 19.3% – – – – – – – – – – – –
Exceptional award
3
(%ofmaximum) 61.7% 59.9% – – – – – – – – – – –
1. Christopher Bailey (CB, Chief Creative Officer and CEO from 1 May 2014 to 4 July 2017), Marco Gobbetti (MG, CEO from 5 July 2017 to 31 December 2021), Jonathan Akeroyd
(JA,CEOfrom 15 March 2022 to 15 July 2024), Joshua Schulman (JS, CEO from 17 July 2024).
2. The CIP was the Burberry Co-Investment Plan, a long-term incentive plan under which the final performance-based awards were granted in 2014. Details of this plan can be found
intherelevant Directors’ Remuneration Reports.
3. The exceptional award for Christopher Bailey relates to vesting of his 2014 exceptional share award as previously disclosed.
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26 173

Non-Executive Director remuneration (audited)
The table below sets out the single figure of total remuneration received or receivable by the Non-Executive Directors in respect
ofFY 2025/26 (and the prior financial year).
Year to 28 March 2026 Year to 29 March 2025
Fees
1
£’000
Benefits and
allowances
2
£’000
Total
£’000
Fees
1
£’000
Benefits and
allowances
2
£’000
Total
£’000
Non-Executive Directors
Gerry Murphy 438 7 445 438 9 447
Alessandra Cozzani 82 25 107 82 12 94
Ron Frasch 82 43 125 82 22 104
Danuta Gray 117 15 132 117 7 124
Stella King
3
82 38 120 N/A N/A N/A
Orna NíChionna 102 5 107 102 1 103
Alan Stewart 117 6 123 117 1 118
Former Non-Executive Directors
Fabiola Arredondo
4
25 15 40 82 23 105
Sam Fischer
4
25 16 41 82 31 113
Antoine de Saint-Affrique
4
25 8 33 82 20 102
1. Fees include the base fee and additional fees payable to the Senior Independent Director, the Audit Committee Chair and the Remuneration Committee Chair in line with the existing
Directors’ Remuneration Policy.
2. For Non-Executive Directors other than the Chair, allowances include an attendance allowance for each meeting attended outside their country or territory of residence. Non-Executive
Directors appointed before 11 May 2023 currently receive £2,000 per meeting. Non-Executive Directors appointed from 11 May 2023 currently receive £2,000 for meetings that
involveinter-continental travel and £1,000 for other meetings outside their country or territory of residence. Allowances also include the reimbursement of certain expenses incurred
bytheNon-Executive Directors in the performance of their duties, which are deemed by HM Revenue & Customs (HMRC) to be subject to UK income tax. Any tax liabilities arising
onthereimbursement of these costs will be settled by the Company. Amounts disclosed have been estimated and have been grossed up at the appropriate tax rate, where necessary.
3. Fees for Stella King relate to the period from 1 April 2025 when she was appointed to the Board.
4. Fees for Fabiola Arredondo, Sam Fischer and Antoine de Saint-Affrique relate to the period to 16 July 2025 when they retired from the Board.
Summary of Non-Executive Director fees for FY 2026/27
Following a review, the Committee determined that the Chair would receive a fee increase of 3% with effect from 1 July 2026. The Board
determined that the fee for the Senior Independent Director would increase to £35,000 with effect from 1 July 2026 and that there would
be no other increases to the Non-Executive Directors’ fees for FY 2026/27.
The fee structure for the Non-Executive Directors for FY 2026/27 is set out in the table below.
Fee level
£’000
Chair
1
453.2
Non-Executive Director 82.8
Senior Independent Director 35
Audit Committee Chair 35
Remuneration Committee Chair 35
Attendance allowance
2
Up to 2
1. The Chair is not eligible for Committee-related fees or attendance allowances.
2. For Non-Executive Directors other than the Chair, allowances include an attendance allowance for each meeting attended outside their country or territory of residence. Non-Executive
Directors appointed before 11 May 2023 currently receive £2,000 per meeting. Non-Executive Directors appointed from 11 May 2023 currently receive £2,000 for meetings that involve
inter-continental travel and £1,000 for other meetings outside their country or territory of residence.
3. Expenses incurred in the normal course of business are reimbursed and, as these are considered by HMRC to be taxable benefits, the tax due on these will also be met by the Company.
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26174

Non-Executive Director shareholdings (audited)
The table below summarises the total interests of the Non-Executive Directors (and their connected persons) in ordinary shares
ofBurberry Group plc as at 28 March 2026 (or as at the date of stepping down, if earlier).
In line with the shareholding guideline, Non-Executive Directors hold shares with a market value at acquisition of £6,000 for each year
oftheir appointment. As at 28 March 2026 (or as at the date of stepping down, if earlier), all of the Non-Executive Directors who had
served more than one year since their appointment had fulfilled this guideline.
Total number of
shares owned
Non-Executive Directors
Gerry Murphy 35,000
Alessandra Cozzani 1,100
Ron Frasch 5,838
Danuta Gray 6,847
Stella King 608
Orna NíChionna 4,275
Alan Stewart 2,350
Former Non-Executive Directors
Fabiola Arredondo 30,000
Sam Fischer 3,000
Antoine de Saint-Affrique 3,100
There have been no changes in the total number of shares owned in the period up to and including 13 May 2026.
Remuneration Committee in FY 2025/26
Committee membership
Danuta Gray, Ron Frasch, Orna NíChionna and Alan Stewart served as members of the Committee throughout the year ended 28 March 2026.
Fabiola Arredondo and Sam Fischer served as members of the Committee until they retired from the Board on 16 July 2025.
Committee remit
The Committee’s terms of reference are published on Burberryplc.com.
In addition to setting the remuneration of the Executive Directors, the Committee continues to directly oversee the remuneration
arrangements for the Executive Committee, the Company Secretary and other members of senior management within its remit
asdetermined from time to time.
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26 175

Summary of meetings
The Committee typically meets four times a year. During FY 2025/26, the Committee held six meetings. Other ad hoc discussions were
heldasrequired. Details of attendance at Committee meetings are set out on page 142. If any Committee members are unable toattend
ameeting, they are given the opportunity to discuss any of the agenda items with the Committee Chair in advance of the meeting. Theagenda
items discussed at the six meetings are summarised below. Other Committee matters, including remuneration arrangements for Executive
Committee members and others within the Committee’s remit, were determined by the Committee outside the scheduledmeetings.
May 2025
• Update on external environment from independent advisors
• FY 2024/25 incentive outcomes
• FY 2025/26 performance targets and incentive awards
• 2025 BSP awards, including performance underpins for Executive Directors
• FY 2025/26 senior executive remuneration
• Chair fees for FY 2025/26
• Approval of Directors’ Remuneration Report 2024/25
• Update on share plan dilution
September 2025
• 2025/26 Directors’ Remuneration Policy review
November 2025
• Update on external environment from independent advisors
• 2025/26 Directors’ Remuneration Policy review
• Incentives performance update
• All-employee share plan awards 2025
• Update on Executive Committee members’ shareholding guideline compliance
• Committee annual planner
January 2026
• 2025/26 Directors’ Remuneration Policy review
February 2026
• Update on external environment from independent advisors
• 2025/26 Directors’ Remuneration Policy review and shareholder engagement process
March 2026
• Update on external environment from independent advisors
• Incentives performance update
• FY 2026/27 annual bonus plan proposals
• Overview of broader employee reward and feedback from the March 2026 meeting of the Global
Workforce Advisory Forum
• UK Gender and Ethnicity Pay Gap Report for 2025/26 reporting year
• Review of Committee’s terms of reference
Regular attendees at Committee meetings include the Chair of the Board, the CEO, the CFO, the Company Secretary, the Chief People
Officer, theVice President, Reward, the Director, Executive Reward and Share Plans and representatives of the Committee’s advisors.
Other members of the senior management team may attend Committee meetings from time to time. Attendees are not present when their
ownremuneration is being discussed.
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26176

Advisors to the Committee
Deloitte was appointed as an independent advisor to the Committee in 2017 and reappointed in 2021 and again in 2024 following
acompetitive tender process. Deloitte is a founding member of the Remuneration Consultants’ Group (RCG), which is responsible for
thedevelopment and maintenance of the voluntary Code of Conduct that clearly sets out the role of executive remuneration consultants
and the professional standards by which they advise their clients. Fees are charged on a time and expenses basis and totalled £215,000
(plus VAT) during FY 2025/26. During the year Deloitte also provided other consulting services, tax compliance and advisory services.
TheCommittee is satisfied that advice received from Deloitte during the year was objective and independent and that all individuals who
provided remuneration advice to the Committee had no connections with Burberry or its Directors that may impair their independence.
The Committee reviewed the potential for conflicts of interest and judged that there were appropriate safeguards against such conflicts.
Linklaters LLP also provided advice to the Committee in relation to the operation of the Company’s share plans, employment law
considerations and compliance with legislation.
Remuneration voting results
The table below shows the results of the latest remuneration-related shareholder votes on the Directors’ Remuneration Report and the
Directors’ Remuneration Policy.
We have engaged with and listened to our shareholders during FY 2025/26 as we have developed our proposals for the Directors’
Remuneration Policy review. The Committee and I would like to thank all of you who have invested time with us as it has helped to inform
our thoughts on remuneration at Burberry.
AGM voting results Votes for Votes against Votes withheld
To approve the Directors’ Remuneration Report for the year ended
29 March 2025 (2025 AGM)
278,795,241
(95.18%)
14,128,305
(4.82%)
6,034,720
To approve the Directors’ Remuneration Policy (2023 AGM) 271,202,999
(91.02%)
26,745,859
(8.98%)
975,510
The Committee and I continue to value the input of shareholders to help inform our thoughts on executive remuneration at Burberry.
Aspart of our commitment to build on the constructive dialogue we have established, we look forward to continuing toengage with you
and receiving your support at the AGM in July.
This report has been approved by the Board and signed on its behalf by:
Danuta Gray
Chair, Remuneration Committee
13 May 2026
Corporate Governance Statement | Directors’ Remuneration Report
Burberry Annual Report 2025/26 177

DIRECTORS’ REPORT
Corporate Governance Statement | Directors’ Report
Share capital
Details of the issued share capital, together with details
ofmovement in the issued share capital of the Company during
the year, are shown in note 24 to the Consolidated Financial
Statements. Thisis incorporated by reference and deemed to be
part of this report. The Company has one class of ordinary share
of 0.05 pence each (Share), which carries no right to fixed income.
EachShare carries the right to one vote at general meetings
ofthe Company. The Shares are listed on the Official List and
traded on the London Stock Exchange. No person has any special
rights of control over the Company’s share capital and all issued
Shares are fully paid.
As at 28 March 2026, the Company had 363,837,406 Shares
inissue, including 2,839,220 held in treasury. At the AGM
in2025,shareholders approved resolutions to allot Shares up
toanaggregate nominal value of £59,862, and to allot Shares for
cash other than pro rata to existing shareholders. Shareholders
also approved a resolution to issue up to an additional 5% of
issued share capital other than pro rata to existing shareholders
in connection with an acquisition or specified capital investment.
In order to retain maximum flexibility, resolutions will be proposed
to shareholders at this year’s AGM to renew these authorities.
Substantial shareholdings
As at 28 March 2026, the Company had been notified under
Rule5 of the Disclosure Guidance and Transparency Rules
ofthefollowing major interests in its issued share capital:
Number of
Sharesheld
% of total
votingrights
1
Massachusetts Financial Services
Company 20,668,065 5.10
Norges Bank 14,168,490 3.92
1. As at the date of notification to the Company.
The Company has received no notifications ofmajor interests
inits issued share capital since 28 March 2026.
Interests in own Shares
Details of the Group’s interests in its own Shares are set out
innote 24 to the Consolidated Financial Statements.
The Directors present their Annual Report and the audited consolidated Financial Statements of the Company for the year ended
28 March 2026. For the purposes of the Companies Act 2006, the Disclosure Guidance and Transparency Rules (DTR), and other relevant
legislation, the Strategic Report on pages 2 to 105, the Corporate Governance Statement on pages 107 to 180 and the Consolidated
Financial Statements on pages 181 to 249, are incorporated by reference and shall be deemed to form part of this Directors’ Report.
Therelevant references for specific disclosures are set out below.
Disclosure Page
Strategic Report, including 2
• Employee engagement and culture 33
• Stakeholder engagement 38
• Social, community, health and safety, disability and human rights issues includingrelevant policies 76
• Future developments of the business 29
• Risk, going concern and viability 95, 197
The Corporate Governance Statement, including 108
• Corporate Governance Report 114
• Global GHG emissions 58
• Board and senior management diversity 113
Consolidated Financial Statements, including 192
• Statement of Directors’ Responsibilities 181
• Note 26 – Financial Instruments and risks 220
Burberry Annual Report 2025/26178

Corporate Governance Statement | Directors’ Report
Share buyback
During the reporting period, no share buyback programmes
wereundertaken. The authority granted by shareholders
atthe2025 AGM will remain in place until a new authority is
granted by shareholders at the 2026 AGM or 15 October 2026,
whichever is earlier.
Transfer of Shares
There are no specific restrictions on the size of holding or on the
transfer of Shares. The Directors are not aware of any agreements
between holders of Shares that may result in restrictions on the
transfer of securities or voting rights. The Directors have nocurrent
plans to issue Shares other than in connection with employee
share plans.
Voting
Each Share carries one vote at general meetings of the Company.
Any Shares held in treasury have no voting rights. A shareholder
entitled to attend, speak and vote at a general meeting may
exercise their right to vote in person, by proxy, or, in relation
tocorporate members, by corporate representatives. To be
valid,notification of the appointment of a proxy must be received
notless than 48 hours before the relevant general meeting at
which the person named in the Form of Proxy proposes to vote.
TheDirectors may in their discretion determine that, in calculating
the 48-hour period, no account be taken of any part of a day
which is not a working day. Employees who participate in the SIP
whose Shares remain in the Burberry Group plc SIP Trust (SIP
Trust) may give directions to the trustees to vote on their behalf
by way of a Form of Direction.
Articles of Association
The Company’s Articles of Association were adopted at the 2021
AGM. No changes to the Articles of Association are being
proposed at this year’s AGM.
Dividend
Consistent with the prior year, and in order to strengthen the
balance sheet while maintaining capacity to invest in Burberry’s
long-term growth, the Directors have not declared an interim
orfinal dividend for FY 2025/26 (FY 2024/25: £nil).
Under a standing arrangement, the Burberry Group plc ESOP
Trust has waived all dividends and future dividends payable by
the Company in respect of the Burberry Shares it holds until the
Company is notified otherwise. As no dividend was declared by
the Company during FY 2025/26, no dividends arose in respect
ofunappropriated Shares held by the SIP Trust and, accordingly,
no waiver was required.
Revenue and profit
Revenue from continuing business during the year amounted
to£2,420 million (FY 2024/25: £2,461 million). The adjusted
operating profit for the year was £160 million (FY 2024/25:
£26 million). The profit for the year attributable to equity holders
of the Company was £21 million (FY 2024/25: loss of £75 million),
a year-on-year increase of 128% predominantly related to a
540bps increase in gross margin, which gave rise toa 528%
increase in adjusted operating profit. An adjusting items charge
of £45 million resulted in a £118 million increase inoperating
profit and an increase in the effective tax rate resulted
ina£96 million increase in profit for the year.
Branches
Note 29 to the Consolidated Financial Statements sets out
theGroup’s subsidiary entities. In addition, the Group has the
following non-domestic branches:
• Burberry Limited: Hong Kong S.A.R., China and Republic ofKorea
• Burberry (Spain) Retail S.L.: Portugal
Significant contracts – change of control
Pursuant to the Companies Act 2006, the Directors disclose that,
in the event of a change of control, the Company’s borrowings
under the Group’s currently undrawn £300 million Revolving
Credit Facility, dated 26 July 2021, could become repayable.
The Company’s borrowings under the Group’s fully drawn
£75 million Revolving Credit Facility, dated 21 March 2025,
couldbecome repayable.
On 3 April 2017, Burberry entered into an exclusive licensing
agreement with Coty pursuant to which Coty develops,
manufactures, markets, distributes and sells Burberry Beauty
products. The agreement took effect in October 2017, from which
time ongoing royalty payments have been payable to Burberry.
Pursuant to the Companies Act 2006, the Directors disclose that
a change in control of Burberry will, in limited circumstances,
result in Coty having a right of termination of the licence agreement.
Burberry Annual Report 2025/26 179

Corporate Governance Statement | Directors’ Report
A small number of leases contain certain rights that may entitle
landlords to terminate or approve continuation of the leases
intheevent that a Burberry subsidiary is transferred out of the
Group or there is a change of control of Burberry Group plc.
These are not considered to be significant in terms of the potential
impact on the business as a whole.
There are no arrangements between the Company and its Directors
or employees providing for compensation for loss ofoffice or
employment that occurs specifically because ofatakeover, merger
or amalgamation. There are provisions intheCompany’s share
plans which could result in options or awards vesting or becoming
exercisable on a change of control. Forfurther information on the
change of control provisions in theCompany’s share plans, refer
to the proposed new Directors’ Remuneration Policy which can be
found on pages 150 to 160, which will be submitted to shareholders
for approval at the 2026AGM.
Employee share plans and share ownership
The Company is committed to employee share ownership with
two all-employee share plans available to employees at all
levelsof the organisation. Further details of these share plans
areset out in the Directors’ Remuneration Report on page 149.
The Group intends to operate these all-employee share plans
during FY 2026/27 to grant awards of free Burberry Shares
(orequivalent cash-based awards as appropriate) to all eligible
employees globally, and to invite eligible employees, where
possible, to participate in the ShareSave scheme. The Directors
review the operation of these plans to ensure that they effectively
support the Group’s strategy and encourage greater alignment
byemployees with the Group’s performance. Details of employee
share plans are set out in note 27 to the Financial Statements.
Political donations
The Company did not make any political donations during the
yearin line with its policy (FY 2024/25: £nil). In keeping with the
Group’s approach in prior years, shareholder approval is being
sought at the forthcoming AGM, as a precautionary measure,
forthe Company and its subsidiaries to make donations and/or
incur expenditure which may be construed as political by the
wider definition of that term included in the relevant legislation.
Furtherdetails are provided in the Notice of Annual GeneralMeeting.
Directors
The names and biographical details of the Directors as at thedate
of this report are set out on pages 109 to 112 and areincorporated
by reference into this report. With regard totheappointment
andresignation of Directors, the Company follows the 2024
UKCorporate Governance Code and is governed byits Articles
ofAssociation, the Companies Act 2006 and related legislation.
At the 2026 AGM, all Directors will stand for re-election as
appropriate. The Notice of Meeting 2026 sets out thecontributions
and reasons for the re-election of each Director. The service
agreements of the Executive Directors and the letters of
appointment of the Non-Executive Directors are available
forinspection at the Company’s registered office on request.
Briefdetails of these arealso included on page 172 of the
Directors’ Remuneration Report. For information on the
Directors’training, see page 124.
Directors’ Share interests
The interests in Shares of the Directors holding office as at
28 March 2026 are shown within the Directors’ Remuneration
Report on pages 169 to 175. There were no changes to the beneficial
interests of the Directors between the period 28 March 2026
and13 May 2026.
Directors’ powers and responsibilities
Subject to the Company’s Articles of Association, the Companies
Act 2006 and any directions given by special resolution, the
business of the Group will be managed by the Board, which may
exercise all the powers of the Group, including powers relating
tothe issue and/or buying back of Shares by the Group
(subjectto any statutory restrictions or restrictions imposed
byshareholdersat the AGM). Further information on the matters
considered by the Board and decisions made during the year is
set out in the Corporate Governance Report on pages 118 to 119.
The Schedule of Matters Reserved for the Board can be found
onBurberryplc.com.
Directors’ insurance and indemnities
In accordance with section 236 of the Companies Act 2006,
theCompany continues to indemnify the Company’s Directors
against any liability incurred in respect of acts or omissions
arising in the course of their office. Qualifying third-party
indemnities were in force during the financial year and at the date
of approval of the Financial Statements. Each Director is covered
by appropriate Directors’ and Officers Indemnity Insurance.
Disclosures pursuant to UK Listing Rule 6.6.1
UK Listing Rule Description of UK ListingRule Reference
6.6.1 (11) and (12) Waivers of dividends See Dividend
paragraph
onpage 179
The Strategic Report from pages 2 to 105 and Directors’ Report
from pages 178 to 181 have been approved by the Board
on13 May2026 in accordance with the Companies Act 2006.
By order of the Board
Gemma Parsons
Company Secretary
13 May 2026
Burberry Group plc
Registered Office: Horseferry House, Horseferry Road,
LondonSW1P 2AW
Registered in England and Wales
Registered number: 03458224
Burberry Annual Report 2025/26180

Financial Statements | Statement of Directors’ Responsibilities
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
182 Burberry Annual Report 25/26
The Directors are responsible for preparing the Annual Report, the Directors’ Remuneration Report and the financial statements
in accordance with applicable laws and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have prepared
the Group consolidated financial statements in accordance with the UK-adopted International Accounting Standards and the Company
financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting
Standards, comprising FRS 101 ‘Reduced Disclosure Framework’ and applicable law). Under company law the Directors must not approve
the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company
and of the profit or loss of the Group and the Company for that year. In preparing these financial statements the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• state whether applicable UK-adopted International Accounting Standards have been followed for the Group financial statements,
and United Kingdom Accounting Standards, comprising FRS 101, have been followed for the Company financial statements, subject
to any material departures disclosed and explained in the Group and parent Company financial statements respectively;
• make judgements and accounting estimates that are reasonable and prudent;
• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable
information; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and Company will
continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and Company’s
transactions and disclose with reasonable accuracy at any time the financial position of the Group and Company and enable them
to ensure that the financial statements and the Directors’ Remuneration Report comply with the Companies Act 2006. They are also
responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
In accordance with section 418(2) of the Companies Act 2006, each of the Company’s Directors in office at the date of this report
confirms that:
• so far as the Director is aware, there is no relevant audit information of which the Company’s external auditor is unaware; and
• the Director has taken all appropriate steps to ensure they are aware of any relevant audit information, and to establish that the
Company’s external auditor is aware of that information.
The Directors are responsible for the maintenance and integrity of the Company’s website. Legislation in the United Kingdom governing
the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The Directors consider that the Annual Report, taken as a whole, is fair, balanced and understandable and provides the information
necessary for shareholders to assess the Group and the Company’s position and performance, business model and strategy.
Each of the Directors, whose names and functions are listed on pages 109 to 112, confirm that, to the best of their knowledge:
• the Company financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting
Practice (United Kingdom Accounting Standards, comprising FRS 101 ‘Reduced Disclosure Framework’, and applicable law), give a true
and fair view of the assets, liabilities, financial position and profit of the Company;
• the Group financial statements, which have been prepared in accordance with the UK-adopted International Accounting Standards,
give a true and fair view of the assets, liabilities, financial position and profit of the Group; and
• the Strategic Report includes a fair review of the development and performance of the business and the position of the Group and the
Company, together with a description of the principal risks and uncertainties that it faces.
These statements were approved by the Board on 13 May 2026 and signed on its behalf by:
Joshua Schulman Kate Ferry
Chief Executive Officer
Chief Financial Officer
Burberry Annual Report 2025/26 181

Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS
OF BURBERRY GROUP PLC
Burberry Annual Report 25/26 183
Opinion
In our opinion:
• Burberry Group plc’s Group financial statements and Company financial statements (the “financial statements”) give a true and fair
view of the state of the Group’s and of the Company’s affairs as at 28 March 2026 and of the Group’s profit for the 52-week period
then ended;
• the Group financial statements have been properly prepared in accordance with UK adopted International Accounting Standards;
• the Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Burberry Group plc (the ‘Company’) and its subsidiaries (the ‘Group’) for the 52 week period
then ended 28 March 2026 which comprise:
Group Company
Income statement for the 52 weeks ended 28 March 2026
Balance sheet as at 28 March 2026
Statement of comprehensive income for the 52 weeks ended
28 March 2026
Statement of changes in equity for the 52 weeks ended
28 March 2026
Balance sheet as at 28 March 2026 Related notes A to M to the financial statements, including
a summary of material accounting policies
Statement of changes in equity for the 52 weeks ended
28 March 2026
Statement of cash flows for the 52 weeks ended 28 March 2026
Related notes 1 to 30 to the financial statements, including
a summary of material accounting policies
The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and UK
adopted International Accounting Standards. The financial reporting framework that has been applied in the preparation of the Company
financial statements is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework”
(United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK) and applicable law. Our responsibilities
under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group and Company in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group or the Company and we remain
independent of the Group and the Company in conducting the audit.
Burberry Annual Report 2025/26182

Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc
184 Burberry Annual Report 25/26
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the Group and Company’s ability
to continue to adopt the going concern basis of accounting included:
• In conjunction with our walkthrough of the Group’s financial statement close process, we confirmed our understanding of
management’s going concern assessment process and engaged with management early to understand and assess the key
assumptions made in their assessment;
• We checked the logic and arithmetical integrity of management’s going concern model that includes the cash forecasts for the going
concern assessment period covering the 18 month period up to 25 September 2027
• We assessed the appropriateness of the duration of the going concern assessment period of 18 months to 25 September 2027 and
considered the existence of any significant events or conditions beyond this period based on our procedures on the group’s long-range
plan and knowledge arising from other areas of the audit.
• We considered the appropriateness of the revenue and operating expense assumptions used to calculate the cash forecasts under
the base case and severe but plausible case scenarios. In light of the current geopolitical environment and uncertain global consumer
demand, we specifically challenged management’s plausible downside case scenario to assess if it was sufficiently severe for the
going concern assessment;
• We reviewed the Group’s debt agreements for any conditions precedent outside of management’s control and also reviewed forecast
compliance with covenant requirements in both the base and severe but plausible downside case scenarios during the going concern
assessment period;
• We agreed the 28 March 2026 cash and cash equivalents balance included in the going concern assessment to the Group’s year
end cash and cash equivalents balance;
• We reviewed the borrowings of the Group to assess whether any are repayable within the going concern assessment period;
• We assessed the reasonableness of the cashflow forecasts included in the going concern assessment by analysing management’s
historical forecasting accuracy and for consistency of the going concern assessment with information obtained from other areas
of the audit such as goodwill impairment, retail store impairment and recoverability of deferred tax assets;
• We evaluated the key assumptions by searching for contrary evidence to challenge these assumptions, including third party sector
forecasts and analyst expectations. Further, we tested these assumptions for consistency with the budget approved by the Board;
• We challenged the measurement and completeness of the severe but plausible scenario modelled by management, whether the risks
considered are sufficiently severe, and how these compare with the principal risks and uncertainties of the Group;
• We considered the mitigating factors available and that are within control of the Group. This included review of the Group’s non-operating
cash outflows and evaluating the Group’s ability to control these outflows as mitigating actions if required;
• We performed a review of management’s reverse stress test to identify the magnitude of decline in revenue that would lead to the
Group utilising all liquidity during the going concern assessment period and we have considered the likelihood of such a decline;
• We reviewed activity in the subsequent events period to assess for contrary indicators;
• We reviewed the Group and Company’s going concern disclosures included in the Annual Report to assess that the disclosures are
consistent with the basis upon which the Board have concluded, and in conformity with the reporting standards.
We observe that in management’s base case and severe but plausible downside scenario, there is headroom without taking into
consideration the benefit of identified controllable mitigations.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually
or collectively, may cast significant doubt on the Group and Company’s ability to continue as a going concern for a period up to
25 September 2027.
In relation to the Group and Company’s reporting on how they have applied the UK Corporate Governance Code, we have nothing
material to add or draw attention to in relation to the Directors’ statement in the financial statements about whether the Directors
considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections
of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Group
and Company’s ability to continue as a going concern.
Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS
OF BURBERRY GROUP PLC
Burberry Annual Report 25/26 183
Opinion
In our opinion:
• Burberry Group plc’s Group financial statements and Company financial statements (the “financial statements”) give a true and fair
view of the state of the Group’s and of the Company’s affairs as at 28 March 2026 and of the Group’s profit for the 52-week period
then ended;
• the Group financial statements have been properly prepared in accordance with UK adopted International Accounting Standards;
• the Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Burberry Group plc (the ‘Company’) and its subsidiaries (the ‘Group’) for the 52 week period
then ended 28 March 2026 which comprise:
Group
Company
Income statement for the 52 weeks ended 28 March 2026
Balance sheet as at 28 March 2026
Statement of comprehensive income for the 52 weeks ended
28 March 2026
Statement of changes in equity for the 52 weeks ended
28 March 2026
Balance sheet as at 28 March 2026
Related notes A to M to the financial statements, including
a summary of material accounting policies
Statement of changes in equity for the 52 weeks ended
28 March 2026
Statement of cash flows for the 52 weeks ended 28 March 2026
Related notes 1 to 30 to the financial statements, including
a summary of material accounting policies
The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and UK
adopted International Accounting Standards. The financial reporting framework that has been applied in the preparation of the Company
financial statements is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework”
(United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK) and applicable law. Our responsibilities
under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group and Company in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group or the Company and we remain
independent of the Group and the Company in conducting the audit.
Burberry Annual Report 2025/26 183

Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc
Burberry Annual Report 25/26 185
Overview of our audit approach
Audit scope
• We performed an audit of the complete financial information of four components and audit procedures
on specific balances for a further five components. We performed central procedures on financial statement
line items as detailed in the ‘Tailoring the scope’ section below.
Key audit matters
• Valuation of finished goods inventory provision.
• Impairment of retail store right-of-use assets and related property, plant and equipment.
• Provision for uncertain tax positions.
Materiality
• Overall Group materiality of £17.4m which represents approximately 0.7% of revenue.
An overview of the scope of the Company and Group audits
Tailoring the scope
Our audit scoping has been performed in line with the requirements of ISA (UK) 600 (Revised). We have followed a risk-based approach
when developing our audit approach to obtain sufficient appropriate audit evidence on which to base our audit opinion. We performed
risk assessment procedures, with input from our component auditors, to identify and assess risks of material misstatement of the Group
financial statements and identified significant accounts and disclosures.
When identifying components at which audit work needed to be performed to respond to the identified risks of material misstatement
of the Group financial statements, we considered our understanding of the Group and its business environment, changes at specific
components, macroeconomic and geopolitical factors, the applicable financial reporting framework, the Group’s system of internal
control at the entity level, the existence of centralised processes, applications, any relevant internal audit results and the potential impact
of climate change.
We determined that centralised audit procedures would be performed on revenue, cost of sales, finance income and costs, goodwill
included within intangible assets with indefinite lives, right-of-use assets and lease liabilities, impairment and impairment reversal of
right-of-use assets and related property, plant and equipment, deferred tax assets, derivative financial assets and liabilities, inventory
provision, existence of inventories (note: valuation of inventories was not centralised and was tested by component teams), restructuring
charges, equity, borrowings, provision for uncertain tax positions and income tax.
We then identified four of the components of the Group as individually relevant due to materiality or financial size of the component
relative to the Group. We then identified a further five of the components as individually relevant to the Group based on the materiality
of specific accounts relative to the Group.
For the above nine relevant components, we identified the significant accounts where audit work needed to be performed at these
components by applying professional judgement, having considered the Group significant accounts on which centralised procedures
would be performed, the reasons for identifying the financial reporting component as an individually relevant component and the size
of the component’s account balance relative to the Group significant financial statement account balance.
We then considered whether the remaining Group significant account balances not yet subject to audit procedures, in aggregate, could
give rise to a risk of material misstatement of the Group financial statements. We determined that no additional components of the Group
were required to be included.
Having identified the components for which work would be performed, we determined the scope to assign to each component.
Of the nine components selected, we designed and performed audit procedures on the entire financial information of four components
(“full scope components”). For five components, we designed and performed audit procedures on specific significant financial statement
account balances or disclosures of the financial information of the component (“specific scope components”).
Our scoping to address the risk of material misstatement for each key audit matter is set out in the Key audit matters section of our report.
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Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc
186 Burberry Annual Report 25/26
Changes from the prior year
There have been no changes to the full or specific scope components in scope compared to the prior year.
Involvement with component teams
In establishing our overall approach to the Group audit, we determined the type of work that needed to be undertaken at each
of the components by us, as the Group audit engagement team, or by component auditors operating under our instruction.
The Group audit team performs the testing for three of the four full scope components, which are the UK parent company and trading
businesses in the UK and United States of America. A component team performs the testing for the mainland China trading business.
The Group audit team performs the testing for two of the five specific scope components, which are a trading business in the United
States of America and a trading business in Italy. Component audit teams perform the testing for the trading businesses in Korea, Japan
and Hong Kong S.A.R., China.
The Group audit team continued to follow a programme of planned visits that has been designed to ensure that the Senior Statutory
Auditor visits, virtually or in person, at least all individually relevant component teams each year. During the current year’s audit cycle,
the Senior Statutory Auditor performed an in person visit to the United States of America components, and to the Mainland China and
Hong Kong S.A.R., China component teams. Virtual visits were undertaken by the Group audit team for the Korea and Japan components.
The Hong Kong S.A.R., China and China visits involved visiting local stores, holding meetings with local and regional management,
discussing the year-end audit procedures to be performed by the component teams, communicating the procedures that would be
performed centrally in the UK by the Group audit team, reviewing relevant working papers, and discussing any issues that had arisen.
The Group audit team perform the audit procedures over the two United States of America components, so the site visit focused
on visiting the local distribution centre and stores.
The Group audit team interacted regularly with the component teams where appropriate during various stages of the audit, reviewed
relevant working papers and were responsible for the scope and direction of the audit process. Where relevant, the section on key audit
matters details the level of involvement we had with component auditors to enable us to determine that sufficient audit evidence had
been obtained as a basis for our opinion on the Group as a whole.
This, together with the additional procedures performed at Group level, gave us appropriate evidence for our opinion on the Group
financial statements.
Climate Change
Stakeholders are increasingly interested in how climate change will impact the Group. The Group has determined that the most
significant future impacts from climate change on their operations will be from climate transition risks, specifically market risk associated
with changing consumer preference and physical climate risks. These are explained on pages 46 to 75 in the required Task Force
On Climate Related Financial Disclosures and on pages 97 to 103 in the principal risks and uncertainties. Climate targets for the Group
are also explained on pages 55 to 65. All of these disclosures form part of the “Other information,” rather than the audited financial
statements. Our procedures on these unaudited disclosures therefore consisted solely of considering whether they are materially
inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appear to be materially
misstated, in line with our responsibilities on “Other information”.
In planning and performing our audit we assessed the potential impacts of climate change on the Group’s business and any
consequential material impact on its financial statements.
The Group has explained in Note 1 (Consideration of climate-related matters) how they have reflected the impact of climate change
in their financial statements, including how this aligns with their commitments in the sustainability strategy. There are no significant
judgements or estimates relating to climate change.
Our audit effort in considering the impact of climate change on the financial statements was focused on evaluating management’s
assessment of the impact of climate risk, physical and transition, their climate targets, specifically on the valuation of the finished goods
inventory provision, recoverability of deferred tax assets and impairment of retail store right-of-use assets and related property, plant
and equipment. We have assessed whether these risks have been appropriately reflected in asset values, where values are determined
through modelling future cash flows, following the requirements of UK adopted International Accounting Standards. As part of this
evaluation, we performed our own risk assessment, supported by EY climate change specialists and senior members of the audit team,
held meetings with the Group’s Sustainability and Financial Reporting teams, to determine the risks of material misstatement in the
financial statements from climate change which needed to be considered in our audit.
We also challenged the Directors’ considerations of climate change risks in their assessment of going concern and viability and associated
disclosures. Where considerations of climate change were relevant to our assessment of going concern, these are described above.
Based on our work, whilst we have not identified the impact of climate change on the financial statements to be a standalone key audit
matter, we have considered the impact on the impairment of retail store right-of-use assets and related property, plant and equipment
key audit matter. Details of the impact, our procedures and findings are included in our explanation of key audit matters below.
Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc
Burberry Annual Report 25/26 185
Overview of our audit approach
Audit scope
• We performed an audit of the complete financial information of four components and audit procedures
on specific balances for a further five components. We performed central procedures on financial statement
line items as detailed in the ‘Tailoring the scope’ section below.
Key audit matters
• Valuation of finished goods inventory provision.
• Impairment of retail store right-of-use assets and related property, plant and equipment.
• Provision for uncertain tax positions.
Materiality
• Overall Group materiality of £17.4m which represents approximately 0.7% of revenue.
An overview of the scope of the Company and Group audits
Tailoring the scope
Our audit scoping has been performed in line with the requirements of ISA (UK) 600 (Revised). We have followed a risk-based approach
when developing our audit approach to obtain sufficient appropriate audit evidence on which to base our audit opinion. We performed
risk assessment procedures, with input from our component auditors, to identify and assess risks of material misstatement of the Group
financial statements and identified significant accounts and disclosures.
When identifying components at which audit work needed to be performed to respond to the identified risks of material misstatement
of the Group financial statements, we considered our understanding of the Group and its business environment, changes at specific
components, macroeconomic and geopolitical factors, the applicable financial reporting framework, the Group’s system of internal
control at the entity level, the existence of centralised processes, applications, any relevant internal audit results and the potential impact
of climate change.
We determined that centralised audit procedures would be performed on revenue, cost of sales, finance income and costs, goodwill
included within intangible assets with indefinite lives, right-of-use assets and lease liabilities, impairment and impairment reversal of
right-of-use assets and related property, plant and equipment, deferred tax assets, derivative financial assets and liabilities, inventory
provision, existence of inventories (note: valuation of inventories was not centralised and was tested by component teams), restructuring
charges, equity, borrowings, provision for uncertain tax positions and income tax.
We then identified four of the components of the Group as individually relevant due to materiality or financial size of the component
relative to the Group. We then identified a further five of the components as individually relevant to the Group based on the materiality
of specific accounts relative to the Group.
For the above nine relevant components, we identified the significant accounts where audit work needed to be performed at these
components by applying professional judgement, having considered the Group significant accounts on which centralised procedures
would be performed, the reasons for identifying the financial reporting component as an individually relevant component and the size
of the component’s account balance relative to the Group significant financial statement account balance.
We then considered whether the remaining Group significant account balances not yet subject to audit procedures, in aggregate, could
give rise to a risk of material misstatement of the Group financial statements. We determined that no additional components of the Group
were required to be included.
Having identified the components for which work would be performed, we determined the scope to assign to each component.
Of the nine components selected, we designed and performed audit procedures on the entire financial information of four components
(“full scope components”). For five components, we designed and performed audit procedures on specific significant financial statement
account balances or disclosures of the financial information of the component (“specific scope components”).
Our scoping to address the risk of material misstatement for each key audit matter is set out in the Key audit matters section of our report.
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Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc
Burberry Annual Report 25/26 187
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements
of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we
identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the
audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial
statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.
Risk Our response to the risk
Valuation of finished goods inventory
provision
As described in the Report of the Audit
Committee (page 134); Accounting Policies
(page 200); and Note 17 of the Consolidated
Financial Statements (page 219) management
raises a finished goods inventory provision to
reflect where the expected net realisable value
is
lower than the carrying value of finished goods
inventory at the balance sheet date. The Group
has £67m of inventory provisions, representing
14.3% of the gross value of inventory of £468m
as at 28 March 2026. Of the net inventory of
£401m, £371m relates to finished goods.
The Group determines the inventory provision
considering the aging of inventory by season,
identifying problem inventory and considering
historical loss rates, and future sales forecasts
and the expected channel by which the inventory
will be exited. This process is inherently
judgmental and there is therefore potential for
management bias in relation to its allocation
of inventory to certain sales channels as well as
in relation to future sales forecasts.
• Performed a walkthrough of inventory provisioning process and identified
and understood the design of key controls.
• Evaluated the appropriateness of the Group’s inventory provisioning policy.
We assessed the inventory provision model for each relevant component for
consistency with the Group’s accounting policy.
• Tested the integrity and accuracy of the inventory provisioning models and inputs,
considering the source of information being used by management.
• Applied professional scepticism, and in light of the current geopolitical
environment and uncertain global consumer demand, performed sensitivity
analysis on management’s expected sell through and loss rates of inventory.
• Used inventory movement data for the current year and analysed it to consider
the inventory composition by season and product type. We used this data to
develop an expectation and challenged management on any outliers identified.
• Understood the planned sales channels and exit routes for surplus inventory and
challenged whether these were consistent with prior periods, the overall sales
profile of the Group and the Board-approved forecasts used elsewhere across
the Group. We considered whether there was any evidence of management bias
in the exit routes and sales forecasts used.
•
Performed analytical procedures on key assumptions and corroborated to our work
performed across other accounts to identify and consider whether any contrary
evidence existed.
• Used data to corroborate explanations from management and to identify any
contrary evidence related to the assumptions used by management in identifying
slow-moving inventory or determining exit routes. We performed sensitivity
analysis to assess the significance and risk of changed assumptions on the
provision, primarily being the sell through, exit route and loss rates applied.
• Reviewed disclosures in the financial statements for appropriateness including
the requirement to disclose sensitivities where a reasonably possible change
in a key assumption would result in a material change to the valuation of finished
goods inventory provision.
Key observations communicated to the Audit Committee
We are satisfied the finished goods inventory provisions are appropriate and the Group’s disclosures are appropriate.
How we scoped our audit to respond to the risk and involvement with component teams
All audit work performed to address this risk was undertaken by the group audit team.
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188 Burberry Annual Report 25/26
Key audit matters continued
Risk Our response to the risk
Impairment of retail store right-of-use assets
and related property, plant and equipment
As described in the Report of the Audit
Committee (page 134); Accounting Policies
(page 200); and Notes 13 and 14 of the
Consolidated Financial Statements (pages 216
to 217), management assess the retail store
right-of-use assets and related property, plant
and equipment for impairment charges.
The Group has £748m of right-of-use assets
and £355m of property, plant and equipment
as at 28 March 2026.
In the 52 weeks to 28 March 2026, there was
a net impairment charge of £10m.
There is judgement and estimation uncertainty
involved in determining the store forecast
cash flows to measure impairment charges,
in particular, the revenue growth and profit
margin assumptions in light of the current
geopolitical environment; and uncertain global
consumer demand.
• Performed a walkthrough of the retail store impairment process and understood
the design of key controls.
• Reviewed and challenged the appropriateness of the Group’s impairment policy.
•
Reviewed board minutes and met with regional commercial finance teams, strategy
teams and general counsel to determine if any contrary evidence existed in relation
to the future plans for stores.
• Management considered whether indicators of impairment charges were
present for the Group’s retail store portfolio based on the Group’s latest forecast.
We assessed the completeness of the factors considered, including current
geopolitical matters, and assessed the accuracy of the forecasted information
in conjunction with our testing of the Group’s forecasts further outlined below.
•
For the stores identified with indicators of impairment charge , the Group prepared
value-in-use impairment models. Our procedures over the value-in-use impairment
models included:
• Assessed the methodology against the requirements of IAS 36 Impairment
of Assets;
• Tested the integrity of the model and data inputs used back to source data, for
example agreeing store ROU asset and related property, plant and equipment
values back to accounting records;
• Involved EY valuations specialists to assess the appropriateness of the discount
rate used;
• Challenged assumptions used in cash flow forecasts such as revenue growth
rates (both short-term and long-term) and profit margin assumptions, against
historical results, third-party luxury sector forecasts and latest analyst reports;
• Performed sensitivity analysis on key assumptions and stress testing
calculations for stores most at risk of impairment;
• Challenged whether cash flow forecasts adequately factored in known costs
associated with physical and transition climate targets and any cashflows
required to meet Burberry’s publicly stated climate commitments; and
• Assessed the disclosures in the financial statements against the requirements
of IAS 36 Impairment of Assets, including the requirement to disclose sensitivities
where a reasonably possible change in a key assumption would result in a material
change to the impairment charge or reversal recorded.
Key observations communicated to the Audit Committee
We are satisfied that the consideration of indicators of impairment, methodology, significant underlying assumptions and judgements
are reasonable and support management’s conclusion to a net impairment charge during the year.
We are also satisfied with the disclosure and classification of the impairment charges.
How we scoped our audit to respond to the risk and involvement with component teams
All audit work performed to address this risk was undertaken by the group audit team.
Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc
Burberry Annual Report 25/26 187
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements
of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we
identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the
audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial
statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.
Risk
Our response to the risk
Valuation of finished goods inventory
provision
As described in the Report of the Audit
Committee (page 134); Accounting Policies
(page 200); and Note 17 of the Consolidated
Financial Statements (page 219) management
raises a finished goods inventory provision to
reflect where the expected net realisable value
is lower than the carrying value of finished goods
inventory at the balance sheet date. The Group
has £67m of inventory provisions, representing
14.3% of the gross value of inventory of £468m
as at 28 March 2026. Of the net inventory of
£401m, £371m relates to finished goods.
The Group determines the inventory provision
considering the aging of inventory by season,
identifying problem inventory and considering
historical loss rates, and future sales forecasts
and the expected channel by which the inventory
will be exited. This process is inherently
judgmental and there is therefore potential for
management bias in relation to its allocation
of inventory to certain sales channels as well as
in relation to future sales forecasts.
• Performed a walkthrough of inventory provisioning process and identified
and understood the design of key controls.
• Evaluated the appropriateness of the Group’s inventory provisioning policy.
We assessed the inventory provision model for each relevant component for
consistency with the Group’s accounting policy.
• Tested the integrity and accuracy of the inventory provisioning models and inputs,
considering the source of information being used by management.
• Applied professional scepticism, and in light of the current geopolitical
environment and uncertain global consumer demand, performed sensitivity
analysis on management’s expected sell through and loss rates of inventory.
• Used inventory movement data for the current year and analysed it to consider
the inventory composition by season and product type. We used this data to
develop an expectation and challenged management on any outliers identified.
• Understood the planned sales channels and exit routes for surplus inventory and
challenged whether these were consistent with prior periods, the overall sales
profile of the Group and the Board-approved forecasts used elsewhere across
the Group. We considered whether there was any evidence of management bias
in the exit routes and sales forecasts used.
• Performed analytical procedures on key assumptions and corroborated to our work
performed across other accounts to identify and consider whether any contrary
evidence existed.
• Used data to corroborate explanations from management and to identify any
contrary evidence related to the assumptions used by management in identifying
slow-moving inventory or determining exit routes. We performed sensitivity
analysis to assess the significance and risk of changed assumptions on the
provision, primarily being the sell through, exit route and loss rates applied.
• Reviewed disclosures in the financial statements for appropriateness including
the requirement to disclose sensitivities where a reasonably possible change
in a key assumption would result in a material change to the valuation of finished
goods inventory provision.
Key observations communicated to the Audit Committee
We are satisfied the finished goods inventory provisions are appropriate and the Group’s disclosures are appropriate.
How we scoped our audit to respond to the risk and involvement with component teams
All audit work performed to address this risk was undertaken by the group audit team.
Burberry Annual Report 2025/26 187

Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc
Burberry Annual Report 25/26 189
Key audit matters continued
Risk Our response to the risk
Provision for uncertain tax positions
As described in the Report of the Audit
Committee (page 134); Accounting Policies
(page 200); and Note 9 of the Consolidated
Financial Statements (page 213), the Group is
subject to tax regulation in multiple jurisdictions
and the centralised operating structure of
the Group requires management to exercise
judgement in making determinations as to
the amount of tax that is payable.
The Group is subject to tax authority audits and
has a number of open tax enquiries in multiple
jurisdictions at any point in time.
As a result, the Group has recognised a number
of provisions against uncertain tax positions,
the valuation of which requires significant
assumptions and judgement. We focused
on this area due to the complexity, subjectivity,
quantification of the provision and the judgement
around the trigger for recognition or release
impacting the provision and the effective tax rate.
• Performed a walkthrough of the tax provisioning process and understood the
design of key controls.
• Evaluated the appropriateness of the Group’s transfer pricing and uncertain tax
provisioning policies having met with tax management to understand the Group’s
cross-border transactions, status of all significant matters, including those
provided for, and any changes to management’s judgements in the year;
• Read correspondence with tax authorities, tax opinions and external advisors
to inform our assessment of recorded estimates and evaluated the completeness
of the provisions recorded. For the most material cases, we utilised relevant
internal specialists to understand the key judgements in the case.
• Independently assessed management’s significant assumptions and judgements
to record or release provisions following tax audits, settlements and the expiry
of statute of limitations;
• Tested the accuracy of the calculation of the year end provisions by inspecting
underlying documentation and supporting schedules; and
• Evaluated the adequacy of tax disclosures in the financial statements, including
the requirement to disclose sensitivities where a reasonably possible change
in a key assumption would result in a material change to the provision for
uncertain tax positions.
Key observations communicated to the Audit Committee
We are satisfied that management’s judgements in relation to the extent of provisions for uncertain tax positions are appropriate.
We are also satisfied that the tax disclosures are appropriate.
How we scoped our audit to respond to the risk and involvement with component teams
All audit work performed to address this risk was undertaken by the primary audit team and supported by specialists.
There have been no changes to the Key Audit Matters compared to the prior financial year.
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the audit
and in forming our audit opinion.
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The Group has not yet reached a consistent level of profitability and hence an earnings based measure, we believe, would have resulted
in a materiality below expectations of the users of the financial statements. We therefore considered other performance metrics that
are most relevant to the users of the financial statements and determined revenue to be the most appropriate basis.
We determined materiality for the Company to be £19.2 million (2025: £25.6 million), which is 0.75% (2025: 1%) of total assets. For any
Company balances that are consolidated into the Group financial statements, an allocation of Group performance materiality was used.
During the course of our audit, we reassessed initial materiality based on forecasts provided by management. Our final assessment
reflected the actual reported performance for the period.
Burberry Annual Report 2025/26188

Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc
190 Burberry Annual Report 25/26
Performance materiality
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On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, our judgement was
that performance materiality was 75% (2025: 75%) of our planning materiality, namely £13.1m (2025: £13.7m). We have set performance
materiality at this percentage due to our assessment of the Group’s overall control environment and the likelihood of undetected
misstatements.
Audit work was undertaken at component locations for the purpose of responding to the assessed risk of material misstatement of the
Group financial statements. The performance materiality set for each component is based on the relative scale and risk of the component
to the Group as a whole and our assessment of the risk of misstatement at that component. In the current year, the range of performance
materiality allocated to components was £2.5m to £11.1m (2025: £2.7m to £11.5m).
Reporting threshold
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We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of £0.87m (2025: £0.91m),
which is set at 5% of planning materiality, as well as differences below that threshold that, in our view, warranted reporting on qualitative
grounds.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light of other
relevant qualitative considerations in forming our opinion.
Other information
The other information comprises the information included in the annual report set out on pages 2 to 180, including the Strategic Report
and Corporate Governance Statement, other than the financial statements and our auditor’s report thereon. The directors are responsible
for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this
report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise
to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there
is a material misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the Strategic Report and the Directors’ Report for the financial period for which the financial statements
are prepared is consistent with the financial statements; and
• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the Company and its environment obtained in the course of the audit,
we have not identified material misstatements in the Strategic Report or the Directors’ Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if,
in our opinion:
• adequate accounting records have not been kept by the Company, or returns adequate for our audit have not been received from
branches not visited by us; or
• the Company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with
the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc
Burberry Annual Report 25/26 189
Key audit matters continued
Risk
Our response to the risk
Provision for uncertain tax positions
As described in the Report of the Audit
Committee (page 134); Accounting Policies
(page 200); and Note 9 of the Consolidated
Financial Statements (page 213), the Group is
subject to tax regulation in multiple jurisdictions
and the centralised operating structure of
the Group requires management to exercise
judgement in making determinations as to
the amount of tax that is payable.
The Group is subject to tax authority audits and
has a number of open tax enquiries in multiple
jurisdictions at any point in time.
As a result, the Group has recognised a number
of provisions against uncertain tax positions,
the valuation of which requires significant
assumptions and judgement. We focused
on this area due to the complexity, subjectivity,
quantification of the provision and the judgement
around the trigger for recognition or release
impacting the provision and the effective tax rate.
• Performed a walkthrough of the tax provisioning process and understood the
design of key controls.
• Evaluated the appropriateness of the Group’s transfer pricing and uncertain tax
provisioning policies having met with tax management to understand the Group’s
cross-border transactions, status of all significant matters, including those
provided for, and any changes to management’s judgements in the year;
• Read correspondence with tax authorities, tax opinions and external advisors
to inform our assessment of recorded estimates and evaluated the completeness
of the provisions recorded. For the most material cases, we utilised relevant
internal specialists to understand the key judgements in the case.
• Independently assessed management’s significant assumptions and judgements
to record or release provisions following tax audits, settlements and the expiry
of statute of limitations;
• Tested the accuracy of the calculation of the year end provisions by inspecting
underlying documentation and supporting schedules; and
• Evaluated the adequacy of tax disclosures in the financial statements, including
the requirement to disclose sensitivities where a reasonably possible change
in a key assumption would result in a material change to the provision for
uncertain tax positions.
Key observations communicated to the Audit Committee
We are satisfied that management’s judgements in relation to the extent of provisions for uncertain tax positions are appropriate.
We are also satisfied that the tax disclosures are appropriate.
How we scoped our audit to respond to the risk and involvement with component teams
All audit work performed to address this risk was undertaken by the primary audit team and supported by specialists.
There have been no changes to the Key Audit Matters compared to the prior financial year.
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the audit
and in forming our audit opinion.
Materiality
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We determined materiality for the Group to be £17.4 million (2025: £18.2 million), which is 0.7% of revenue (2025: 0.7% of revenue).
The Group has not yet reached a consistent level of profitability and hence an earnings based measure, we believe, would have resulted
in a materiality below expectations of the users of the financial statements. We therefore considered other performance metrics that
are most relevant to the users of the financial statements and determined revenue to be the most appropriate basis.
We determined materiality for the Company to be £19.2 million (2025: £25.6 million), which is 0.75% (2025: 1%) of total assets. For any
Company balances that are consolidated into the Group financial statements, an allocation of Group performance materiality was used.
During the course of our audit, we reassessed initial materiality based on forecasts provided by management. Our final assessment
reflected the actual reported performance for the period.
Burberry Annual Report 2025/26 189

Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc
Burberry Annual Report 25/26 191
Corporate Governance Statement
We have reviewed the directors’ statement in relation to going concern, longer-term viability and that part of the Corporate Governance
Statement relating to the Group and Company’s compliance with the provisions of the UK Corporate Governance Code specified for our
review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance
Statement is materially consistent with the financial statements or our knowledge obtained during the audit:
• Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material
uncertainties identified set out on page 197;
• Directors’ explanation as to its assessment of the Company’s prospects, the period this assessment covers and why the period
is appropriate set out on page 104;
• Directors’ statement on whether it has a reasonable expectation that the Group will be able to continue in operation and meets its
liabilities set out on page 105;
• Directors’ statement on fair, balanced and understandable set out on page 181;
• Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 136;
• The section of the annual report that describes the review of the effectiveness of risk management and internal control systems set
out on page 136; and
• The section describing the work of the audit committee set out on pages 132 to 140.
Responsibilities of directors
As explained more fully in the Directors’ Responsibilities Statement set out on page 181, the directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors
determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the financial statements, the directors are responsible for assessing the Group and Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors
either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud
is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery
or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities,
including fraud, is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance
of the Company and management.
• We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and determined that the
most significant are those that relate to the reporting framework (UK adopted International Accounting Standards, UK GAAP, the
Companies Act 2006 and the UK Corporate Governance Code) and the relevant tax laws and regulations in the jurisdictions in which
the Group operates. In addition, we concluded that there are certain significant laws and regulations which may have an effect on
the determination of the amounts and disclosures in the financial statements, being the Listing Rules of the UK Listing Authority, and
those laws and regulations relating to health and safety, employees, environmental, social and anti-bribery and corruption practices.
• We understood how the Group is complying with those frameworks by making enquiries of management, including internal audit,
those responsible for legal and compliance procedures, and the company secretary. We corroborated our enquiries through our review
of Board minutes and papers provided to the Audit Committee, and observation in Audit Committee and Risk Committee meetings,
as well as consideration of the results of our audit procedures across the Group.
Burberry Annual Report 2025/26190

Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc
192 Burberry Annual Report 25/26
• We assessed the susceptibility of the Group’s financial statements to material misstatement, including how fraud might occur
by meeting with finance and operational management from various parts of the business to understand where it considered there
was susceptibility to fraud. We also considered performance targets and their potential to influence management to manage earnings.
We have determined there is a risk of fraud associated to a risk of management override of controls over manual revenue journals.
We obtained an understanding of the related party transactions and significant transactions occurring with related parties in the year.
We considered the policies, processes and controls that the Group has established to address the risks identified, including the design
of controls over each significant revenue stream. We also considered the controls that the Group has that otherwise prevent, deter and
detect fraud, and how senior management monitors these controls. We performed audit procedures to address each identified fraud
risk. These procedures were designed to provide reasonable assurance that the financial statements as a whole are free from material
misstatement due to fraud or error.
• Based on this understanding, we designed our audit procedures to identify non-compliance with such laws and regulations.
Our procedures involved providing specific instructions to full and specific scope component teams and, where necessary, using
relevant specialists. Our procedures included journal entry testing, with a focus on manual journal entries, consolidation journal entries
and journal entries indicating large or unusual transactions using data analytics. We based this testing on our understanding of the
business, enquiries of management, including internal audit, legal and other advisors, the company secretary and reading relevant
reports. We have also reviewed the whistleblowing reports issued during the year. Any instances of non-compliance with laws and
regulations identified that might have an impact on components were communicated to the component audit teams and considered
in our audit approach, if applicable.
• In addition, we completed procedures to conclude on the compliance of the disclosures in the Annual Report and Accounts with all
applicable requirements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s
website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Other matters we are required to address
• Following the recommendation from the Audit Committee, we were appointed by the Company at its Annual General Meeting on
15 July 2020 to audit the financial statements for the Company for the period ending 27 March 2021, and subsequent financial periods.
• The period of total uninterrupted engagement including previous renewals and reappointments is six years, covering the periods
ended 27 March 2021 to 28 March 2026.
• The audit opinion is consistent with the additional report to the Audit Committee.
Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Ben Marles (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
13 May 2026
Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc
Burberry Annual Report 25/26 191
Corporate Governance Statement
We have reviewed the directors’ statement in relation to going concern, longer-term viability and that part of the Corporate Governance
Statement relating to the Group and Company’s compliance with the provisions of the UK Corporate Governance Code specified for our
review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance
Statement is materially consistent with the financial statements or our knowledge obtained during the audit:
• Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material
uncertainties identified set out on page 197;
• Directors’ explanation as to its assessment of the Company’s prospects, the period this assessment covers and why the period
is appropriate set out on page 104;
• Directors’ statement on whether it has a reasonable expectation that the Group will be able to continue in operation and meets its
liabilities set out on page 105;
• Directors’ statement on fair, balanced and understandable set out on page 181;
• Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 136;
• The section of the annual report that describes the review of the effectiveness of risk management and internal control systems set
out on page 136; and
• The section describing the work of the audit committee set out on pages 132 to 140.
Responsibilities of directors
As explained more fully in the Directors’ Responsibilities Statement set out on page 181, the directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors
determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the financial statements, the directors are responsible for assessing the Group and Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors
either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud
is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery
or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities,
including fraud, is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance
of the Company and management.
• We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and determined that the
most significant are those that relate to the reporting framework (UK adopted International Accounting Standards, UK GAAP, the
Companies Act 2006 and the UK Corporate Governance Code) and the relevant tax laws and regulations in the jurisdictions in which
the Group operates. In addition, we concluded that there are certain significant laws and regulations which may have an effect on
the determination of the amounts and disclosures in the financial statements, being the Listing Rules of the UK Listing Authority, and
those laws and regulations relating to health and safety, employees, environmental, social and anti-bribery and corruption practices.
• We understood how the Group is complying with those frameworks by making enquiries of management, including internal audit,
those responsible for legal and compliance procedures, and the company secretary. We corroborated our enquiries through our review
of Board minutes and papers provided to the Audit Committee, and observation in Audit Committee and Risk Committee meetings,
as well as consideration of the results of our audit procedures across the Group.
Burberry Annual Report 2025/26 191

Financial Statements | Group Income Statement
GROUP INCOME STATEMENT
52 weeks ended 28 March 2026
Burberry Annual Report 25/26 193
52 weeks to
52 weeks to
Revenue
3
2,420
2,461
Cost of sales
(777)
(923)
Gross profit
1,643
1,538
Operating expenses
(1,539)
(1,564)
Other operating income
11
23
Net operating expenses
4
(1,528)
(1,541)
Operating profit/(loss)
115
(3)
Financing
Finance income
23
25
Finance expense
(89)
(88)
Net finance expense
8
(66)
(63)
Profit/(loss) before taxation
5
49
(66)
Taxation
9
(29)
(9)
Profit/(loss) for the year
20
(75)
Attributable to:
Owners of the Company
21
(75)
Non-controlling interest
(1)
–
Profit/(loss) for the year
20
(75)
Earnings/(loss) per share
Basic
10
5.9p
(20.9)p
Diluted
10
5.9p
(20.9)p
£m
£m
Reconciliation of adjusted profit before taxation:
Profit/(loss) before taxation
49
(66)
Adjusting operating items:
Net operating expenses
6
45
29
Adjusted profit/(loss) before taxation – non-GAAP measure
94
(37)
Adjusted earnings/(loss) per share – non-GAAP measure
Basic
10
15.3p
(14.8)p
Diluted
10
15.2p
(14.8)p
Dividends per share
Interim
11
–
–
Proposed final (not recognised as a liability at 28 March/29 March)
11
–
–
Burberry Annual Report 2025/26192

Financial Statements | Group Statement of Comprehensive Income
GROUP STATEMENT OF COMPREHENSIVE INCOME
52 weeks ended 28 March 2026
194 Burberry Annual Report 25/26
52 weeks to
52 weeks to
Profit/(loss) for the year
20
(75)
Other comprehensive income/(loss)
1
:
Cash flow hedges
24
1
1
Foreign currency translation differences
24
(13)
(25)
Other comprehensive loss for the year, net of tax
(12)
(24)
Total comprehensive income/(loss) for the year
8
(99)
Total comprehensive income/(loss) attributable to:
Owners of the Company
9
(99)
Non-controlling interest
(1)
–
8
(99)
1. All items included in other comprehensive income may subsequently be reclassified to profit and loss in a future period.
Financial Statements | Group Income Statement
GROUP INCOME STATEMENT
52 weeks ended 28 March 2026
Burberry Annual Report 25/26 193
Note
52 weeks to
28 March
2026
£m
52 weeks to
29 March
2025
£m
Revenue
3
2,420
2,461
Cost of sales
(777)
(923)
Gross profit
1,643
1,538
Operating expenses
(1,539)
(1,564)
Other operating income
11
23
Net operating expenses
4
(1,528)
(1,541)
Operating profit/(loss)
115
(3)
Financing
Finance income
23
25
Finance expense
(89)
(88)
Net finance expense
8
(66)
(63)
Profit/(loss) before taxation
5
49
(66)
Taxation
9
(29)
(9)
Profit/(loss) for the year
20
(75)
Attributable to:
Owners of the Company
21
(75)
Non-controlling interest
(1)
–
Profit/(loss) for the year
20
(75)
Earnings/(loss) per share
Basic
10
5.9p
(20.9)p
Diluted
10
5.9p
(20.9)p
£m
£m
Reconciliation of adjusted profit before taxation:
Profit/(loss) before taxation
49
(66)
Adjusting operating items:
Net operating expenses
6
45
29
Adjusted profit/(loss) before taxation – non-GAAP measure
94
(37)
Adjusted earnings/(loss) per share – non-GAAP measure
Basic
10
15.3p
(14.8)p
Diluted
10
15.2p
(14.8)p
Dividends per share
Interim
11
–
–
Proposed final (not recognised as a liability at 28 March/29 March)
11
–
–
Burberry Annual Report 2025/26 193

Financial Statements | Group Balance Sheet
GROUP BALANCE SHEET
52 weeks ended 28 March 2026
Burberry Annual Report 25/26 195
As at
As at
ASSETS
Non-current assets
Intangible assets
12
214
229
Property, plant and equipment
13
355
398
Right-of-use assets
14
748
867
Deferred tax assets
15
245
233
Trade and other receivables
16
48
48
1,610
1,775
Current assets
Inventories
17
401
424
Trade and other receivables
16
323
309
Derivative financial assets
18
3
11
Income tax receivables
83
95
Cash and cash equivalents
19
671
813
1,481
1,652
Total assets
3,091
3,427
LIABILITIES
Non-current liabilities
Trade and other payables
20
(48)
(54)
Lease liabilities
21
(751)
(866)
Borrowings
23
(511)
(438)
Deferred tax liabilities
15
–
(1)
Derivative financial liabilities
18
(5)
(3)
Provisions for other liabilities and charges
22
(38)
(33)
(1,353)
(1,395)
Current liabilities
Trade and other payables
20
(462)
(405)
Bank overdrafts
23
(57)
(105)
Lease liabilities
21
(204)
(215)
Borrowings
23
–
(300)
Derivative financial liabilities
18
(10)
(1)
Income tax liabilities
(41)
(58)
Provisions for other liabilities and charges
22
(18)
(27)
(792)
(1,111)
Total liabilities
(2,145)
(2,506)
Net assets
946
921
EQUITY
Capital and reserves attributable to owners of the Company
Ordinary share capital
24
–
–
Share premium account
231
231
Capital reserve
24
41
41
Hedging reserve
24
4
3
Foreign currency translation reserve
24
160
173
Retained earnings
504
466
Equity attributable to owners of the Company
940
914
Non-controlling interest in equity
6
7
Total equity
946
921
The consolidated financial statements of Burberry Group plc (registered number 03458224) on pages 181 to 236 were approved
and authorised for issue by the Board on 13 May 2026 and signed on its behalf by:
Joshua Schulman Kate Ferry
Chief Executive Officer
Chief Financial Officer
Burberry Annual Report 2025/26194

Financial Statements | Group Statement of Changes in Equity
GROUP STATEMENT OF CHANGES IN EQUITY
52 weeks ended 28 March 2026
196 Burberry Annual Report 25/26
Attributable to owners
Balance as at 30 March 2024
–
231
241
675
1,147
7
1,154
Loss for the year
–
–
–
(75)
(75)
–
(75)
Other comprehensive income:
Cash flow hedges
24
–
–
1
–
1
–
1
Foreign currency translation differences
24
–
–
(25)
–
(25)
–
(25)
Total comprehensive loss for the year
–
–
(24)
(75)
(99)
–
(99)
Transactions with owners:
Employee share incentive schemes
Equity share awards
–
–
–
18
18
–
18
Dividends paid in the year
–
–
–
(152)
(152)
–
(152)
Balance as at 29 March 2025
–
231
217
466
914
7
921
Profit for the year
–
–
–
21
21
(1)
20
Other comprehensive income:
Cash flow hedges
24
–
–
1
–
1
–
1
Foreign currency translation differences
24
–
–
(13)
–
(13)
–
(13)
Total comprehensive income for the year
–
–
(12)
21
9
(1)
8
Transactions with owners:
Employee share incentive schemes
Equity share awards
–
–
–
21
21
–
21
Tax on share awards
–
–
–
1
1
–
1
Purchase of own shares
Purchase of shares held by ESOP trusts
24
–
–
–
(5)
(5)
–
(5)
Balance as at 28 March 2026
–
231
205
504
940
6
946
Financial Statements | Group Balance Sheet
GROUP BALANCE SHEET
52 weeks ended 28 March 2026
Burberry Annual Report 25/26 195
Note
As at
28 March
2026
£m
As at
29 March
2025
£m
ASSETS
Non-current assets
Intangible assets
12
214
229
Property, plant and equipment
13
355
398
Right-of-use assets
14
748
867
Deferred tax assets
15
245
233
Trade and other receivables
16
48
48
1,610
1,775
Current assets
Inventories
17
401
424
Trade and other receivables
16
323
309
Derivative financial assets
18
3
11
Income tax receivables
83
95
Cash and cash equivalents
19
671
813
1,481
1,652
Total assets
3,091
3,427
LIABILITIES
Non-current liabilities
Trade and other payables
20
(48)
(54)
Lease liabilities
21
(751)
(866)
Borrowings
23
(511)
(438)
Deferred tax liabilities
15
–
(1)
Derivative financial liabilities
18
(5)
(3)
Provisions for other liabilities and charges
22
(38)
(33)
(1,353)
(1,395)
Current liabilities
Trade and other payables
20
(462)
(405)
Bank overdrafts
23
(57)
(105)
Lease liabilities
21
(204)
(215)
Borrowings
23
–
(300)
Derivative financial liabilities
18
(10)
(1)
Income tax liabilities
(41)
(58)
Provisions for other liabilities and charges
22
(18)
(27)
(792)
(1,111)
Total liabilities
(2,145)
(2,506)
Net assets
946
921
EQUITY
Capital and reserves attributable to owners of the Company
Ordinary share capital
24
–
–
Share premium account
231
231
Capital reserve
24
41
41
Hedging reserve
24
4
3
Foreign currency translation reserve
24
160
173
Retained earnings
504
466
Equity attributable to owners of the Company
940
914
Non-controlling interest in equity
6
7
Total equity
946
921
The consolidated financial statements of Burberry Group plc (registered number 03458224) on pages 181 to 236 were approved
and authorised for issue by the Board on 13 May 2026 and signed on its behalf by:
Joshua Schulman
Kate Ferry
Chief Executive Officer
Chief Financial Officer
Burberry Annual Report 2025/26 195

Financial Statements | Group Statement of Cash Flows
GROUP STATEMENT OF CASH FLOWS
52 weeks ended 28 March 2026
Burberry Annual Report 25/26 197
52 weeks to
52 weeks to
Cash flows from operating activities
Profit/(loss) before tax
49
(66)
Adjustments to reconcile profit before tax to net cash flows:
Amortisation of intangible assets
12
44
54
Depreciation of property, plant and equipment
13
111
112
Depreciation of right-of-use assets
14
220
247
Impairment charge of intangible assets
12
4
4
Net impairment charge of property, plant and equipment
13
3
10
Net impairment charge of right-of-use assets
14
7
32
Loss on disposal of property, plant and equipment
1
–
Gain on modification of right-of-use assets
(1)
(15)
Loss/(gain) on derivative instruments
16
(8)
Charge in respect of employee share incentive schemes
27
21
18
Net finance expense
66
63
Working capital changes:
Decrease in inventories
19
80
(Increase)/decrease in receivables
(15)
36
Increase/(decrease) in payables and provisions
37
(41)
Cash generated from operating activities
582
526
Interest received
25
21
Interest paid
(78)
(75)
Taxation paid
(45)
(43)
Net cash generated from operating activities
484
429
Cash flows from investing activities
Purchase of property, plant and equipment
(72)
(122)
Purchase of intangible assets
(41)
(29)
Proceeds from sale of property, plant and equipment
–
12
Initial direct costs of right-of-use assets
(1)
1
Payment received on termination of lease
–
11
Net cash outflow from investing activities
(114)
(127)
Cash flows from financing activities
Dividends paid in the year
11
–
(152)
Proceeds from borrowings
23
75
439
Repayment of borrowings
23
(300)
–
Payment of deferred consideration for acquisition of non-controlling interest
20
–
(2)
Payment of lease principal
21
(229)
(232)
Payment on termination of lease
21
–
(5)
Purchase of own shares by ESOP trusts
24
(5)
–
Net cash inflow/(outflow) from financing activities
(459)
48
Net (decrease)/increase cash net of overdrafts
(89)
350
Effect of exchange rate changes
(5)
(4)
Cash net of overdrafts at beginning of year
708
362
Cash net of overdrafts
614
708
Cash and cash equivalents
19
671
813
Bank overdrafts
23
(57)
(105)
Cash net of overdrafts
614
708
Burberry Annual Report 2025/26196

Financial Statements | Notes to the Financial Statements
198 Burberry Annual Report 25/26
1. Basis of preparation
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.
The consolidated financial statements of the Group have been prepared in accordance with the requirements of the Companies Act 2006
and UK-adopted International Accounting Standards (IFRS). These consolidated financial statements have been prepared under the
historical cost convention, except as modified by the revaluation of certain financial assets and financial liabilities at fair value.
The consolidated financial statements are presented in £m. Financial ratios are calculated using unrounded numbers.
Consideration of climate-related matters
The Group has performed a climate-related scenario analysis as required by the Task Force on Climate-related Financial Disclosures.
This scenario analysis takes into consideration different climate-related scenarios, including a 2°C or lower scenario. Based on this
scenario analysis, consideration has been given to the impact of climate-related risks on management’s judgements and estimates,
including inventory provisions and the impairment of property, plant and equipment and right-of-use assets.
The incurred costs and investments associated with our sustainability strategy are reflected in the Group’s financial statements, including
within inventories, property, plant and equipment, and operating profit.
The impact of climate-related risks on the consolidated financial statements for the 52 weeks to 28 March 2026 is not material (last year:
not material). This is due to the time horizons in which physical risks are expected to be most significant not aligning to the useful lives
of our assets and the investments we continue to make to mitigate market and policy risks.
The committed future financial investments associated with our sustainability strategy are included within our budget and three-year
forward-looking financial plans. These financial plans have been used to support our impairment reviews and going concern and viability
assessment. Future plans may incur additional investment on research and development, higher expenditure on raw materials and other
as yet unidentified costs.
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 financial statements. The Directors have also considered the forecast for the period up to 25 September 2027, for indicators
that the going concern basis of preparation is not appropriate.
The scenarios considered by the Directors include a severe but plausible downside scenario reflecting the Group’s base plan adjusted
for severe but plausible impacts from the Group’s principal risks. 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. The Group’s central
planning scenario reflects a balanced projection with a continued focus on maintaining momentum built as part of the strategy.
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 25 September 2027, in comparison
to the base case, 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 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 our digital channel.
• The occurrence of a one-time physical risk relating to climate change in FY 2027/28 and the materialisation of a severe but plausible
ongoing market risk relating to climate change in line with a scenario reflecting a global temperature increase aligned with a Net Zero
2050 scenario.
• 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 in FY 2027/28.
• A short-term impact of a 10% weakening in a key non-sterling currency for the Group before it is recovered through price adjustment.
Financial Statements | Group Statement of Cash Flows
GROUP STATEMENT OF CASH FLOWS
52 weeks ended 28 March 2026
Burberry Annual Report 25/26 197
Note
52 weeks to
28 March
2026
£m
52 weeks to
29 March
2025
£m
Cash flows from operating activities
Profit/(loss) before tax
49
(66)
Adjustments to reconcile profit before tax to net cash flows:
Amortisation of intangible assets
12
44
54
Depreciation of property, plant and equipment
13
111
112
Depreciation of right-of-use assets
14
220
247
Impairment charge of intangible assets
12
4
4
Net impairment charge of property, plant and equipment
13
3
10
Net impairment charge of right-of-use assets
14
7
32
Loss on disposal of property, plant and equipment
1
–
Gain on modification of right-of-use assets
(1)
(15)
Loss/(gain) on derivative instruments
16
(8)
Charge in respect of employee share incentive schemes
27
21
18
Net finance expense
66
63
Working capital changes:
Decrease in inventories
19
80
(Increase)/decrease in receivables
(15)
36
Increase/(decrease) in payables and provisions
37
(41)
Cash generated from operating activities
582
526
Interest received
25
21
Interest paid
(78)
(75)
Taxation paid
(45)
(43)
Net cash generated from operating activities
484
429
Cash flows from investing activities
Purchase of property, plant and equipment
(72)
(122)
Purchase of intangible assets
(41)
(29)
Proceeds from sale of property, plant and equipment
–
12
Initial direct costs of right-of-use assets
(1)
1
Payment received on termination of lease
–
11
Net cash outflow from investing activities
(114)
(127)
Cash flows from financing activities
Dividends paid in the year
11
–
(152)
Proceeds from borrowings
23
75
439
Repayment of borrowings
23
(300)
–
Payment of deferred consideration for acquisition of non-controlling interest
20
–
(2)
Payment of lease principal
21
(229)
(232)
Payment on termination of lease
21
–
(5)
Purchase of own shares by ESOP trusts
24
(5)
–
Net cash inflow/(outflow) from financing activities
(459)
48
Net (decrease)/increase cash net of overdrafts
(89)
350
Effect of exchange rate changes
(5)
(4)
Cash net of overdrafts at beginning of year
708
362
Cash net of overdrafts
614
708
Note
52 weeks to
28 March
2026
£m
52 weeks to
30 March
2025
£m
Cash and cash equivalents
19
671
813
Bank overdrafts
23
(57)
(105)
Cash net of overdrafts
614
708
Burberry Annual Report 2025/26 197

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 199
1. Basis of preparation continued
Going concern continued
Further mitigating actions within management control could be taken under each scenario, including working capital reduction measures
and limiting capital expenditure, and/or variable marketing costs, but these were not incorporated into the downside modelling.
The Directors have also considered the Group’s current liquidity and available facilities. As at 28 March 2026, the Group Balance Sheet
reflects cash net of overdrafts of £614 million. In addition, the Group has access to a £300 million revolving credit facility (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. The £75 million RCF is anticipated to be paid using existing cash resources.
The Group is in compliance with the covenants for the revolving credit facilities and the borrowings are not subject to covenants.
Details of cash, overdrafts, borrowings and facilities are set out in notes 19 and 23 respectively of these financial statements.
In all the scenarios assessed, taking into account liquidity and available resources, and before the inclusion of any mitigating actions
within management control, the Group is able to maintain sufficient liquidity to continue trading throughout the going concern period
up to 25 September 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 consolidated financial statements for the 52 weeks ended 28 March 2026.
New standards, amendments and interpretations adopted in the period
There are no standards or amendments effective for the first time for the 52 weeks to 28 March 2026 that have a material impact on the
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 52 weeks
to 28 March 2026 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, to identify expected changes in the presentation of the Group’s financial statements and in internal processes necessary
to meet the requirements.
Basis of consolidation
The Group’s annual financial statements comprise those of Burberry Group plc (the Company) and its subsidiaries, presented as a single
economic entity. The results of the subsidiaries are prepared for the same reporting year as the Company, using consistent accounting
policies across the Group.
The financial year is the 52 weeks ended 28 March 2026 (last year: 52 weeks ended 29 March 2025).
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights
to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date
on which control is transferred out of the Group. Where there is a loss of control of a subsidiary, the consolidated financial statements
include the results for the portion of the reporting period during which the Group had control. Intra-group transactions, balances and
unrealised profits on transactions between Group companies are eliminated in preparing the Group financial statements. The Group
treats transactions with non-controlling interests as transactions with equity owners of the Group. For acquisitions of additional interests
in subsidiaries from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the
carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals of interests in subsidiaries to non-
controlling interests where control remains are also recorded in equity.
Key sources of estimation uncertainty
Preparation of the consolidated 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.
Burberry Annual Report 2025/26198

Financial Statements | Notes to the Financial Statements
200 Burberry Annual Report 25/26
1. Basis of preparation continued
Key sources of estimation uncertainty continued
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 within the next financial year are discussed below.
Further details of the Group’s accounting policies in relation to these areas are provided in note 2.
Impairment, or reversals of impairment, of property, plant and equipment and right-of-use assets
Property, plant and equipment and right-of-use assets are reviewed for impairment or reversals of impairment if events or changes
in circumstances indicate that the carrying amount may not be recoverable. When a review for impairment is conducted, the recoverable
amount of an asset or a cash generating unit is determined based on value-in-use calculations prepared using management’s best
estimates and assumptions at the time. Refer to notes 13 and 14 for further details of retail property, plant and equipment, right-of-use
assets and impairment reviews carried out in the period and for sensitivities relating to this key source of estimation uncertainty.
Inventory provisioning
The Group purchases, manufactures and sells luxury goods and is subject to changing consumer demands and fashion trends.
The recoverability of the cost of inventories is assessed every reporting period by considering the expected net realisable value of
inventory compared to its carrying value. Where the net realisable value is lower than the carrying value, a provision is recorded. When
calculating inventory provisions, management considers the nature and condition of the inventory, as well as applying assumptions in
respect of anticipated saleability of finished goods and future usage of raw materials. Refer to note 17 for further details of the carrying
value of inventory and inventory provisions and for sensitivities relating to this key source of estimation uncertainty.
Uncertain tax positions
In common with many multinational companies, the Group faces tax audits in jurisdictions around the world in relation to intra-group
transactions between associated entities within the Group. These tax audits are often subject to inter-government negotiations.
The matters under discussion are often complex and can take many years to resolve.
Tax liabilities are recorded based on management’s estimate of either the most likely amount or the expected value amount depending
on which method is expected to better reflect the resolution of the uncertainty. Given the inherent uncertainty in assessing tax outcomes,
the Group could, in future periods, experience adjustments to these uncertain tax positions that have a material positive or negative
effect on the Group’s results for a particular period.
Refer to note 9 for further details of management estimates surrounding the outcome of all matters under dispute or negotiation between
governments in relation to current tax liabilities recognised at 28 March 2026, and for discussion regarding sensitivities relating to this
key source of estimation uncertainty.
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 financial statements. Further details of the Group’s accounting policies are provided in note 2. Key judgements that have
a significant impact on the amounts recognised in the Group financial statements for the 52 weeks to 28 March 2026 and the 52 weeks
to 29 March 2025 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). Where the lease term has been extended by assuming an
extension option will be recognised, this will result in the initial right-of-use assets and lease liabilities at inception of the lease being
greater than if the option was not assumed to be exercised. Likewise, assuming a break option will be exercised will reduce the initial
right-of-use assets and lease liabilities.
Refer to note 21 for further details surrounding the judgements regarding the impact of breaks and options on lease liabilities.
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 199
1. Basis of preparation continued
Going concern continued
Further mitigating actions within management control could be taken under each scenario, including working capital reduction measures
and limiting capital expenditure, and/or variable marketing costs, but these were not incorporated into the downside modelling.
The Directors have also considered the Group’s current liquidity and available facilities. As at 28 March 2026, the Group Balance Sheet
reflects cash net of overdrafts of £614 million. In addition, the Group has access to a £300 million revolving credit facility (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. The £75 million RCF is anticipated to be paid using existing cash resources.
The Group is in compliance with the covenants for the revolving credit facilities and the borrowings are not subject to covenants.
Details of cash, overdrafts, borrowings and facilities are set out in notes 19 and 23 respectively of these financial statements.
In all the scenarios assessed, taking into account liquidity and available resources, and before the inclusion of any mitigating actions
within management control, the Group is able to maintain sufficient liquidity to continue trading throughout the going concern period
up to 25 September 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 consolidated financial statements for the 52 weeks ended 28 March 2026.
New standards, amendments and interpretations adopted in the period
There are no standards or amendments effective for the first time for the 52 weeks to 28 March 2026 that have a material impact on the
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 52 weeks
to 28 March 2026 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, to identify expected changes in the presentation of the Group’s financial statements and in internal processes necessary
to meet the requirements.
Basis of consolidation
The Group’s annual financial statements comprise those of Burberry Group plc (the Company) and its subsidiaries, presented as a single
economic entity. The results of the subsidiaries are prepared for the same reporting year as the Company, using consistent accounting
policies across the Group.
The financial year is the 52 weeks ended 28 March 2026 (last year: 52 weeks ended 29 March 2025).
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights
to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date
on which control is transferred out of the Group. Where there is a loss of control of a subsidiary, the consolidated financial statements
include the results for the portion of the reporting period during which the Group had control. Intra-group transactions, balances and
unrealised profits on transactions between Group companies are eliminated in preparing the Group financial statements. The Group
treats transactions with non-controlling interests as transactions with equity owners of the Group. For acquisitions of additional interests
in subsidiaries from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the
carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals of interests in subsidiaries to non-
controlling interests where control remains are also recorded in equity.
Key sources of estimation uncertainty
Preparation of the consolidated 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.
Burberry Annual Report 2025/26 199

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 201
2. Accounting policies
The material accounting policies of the Group are:
a) Revenue
The Group obtains revenue from contracts relating to sales of luxury goods to retail and wholesale customers. The Group also obtains
revenue through licences issued to third parties to produce and sell goods carrying ‘Burberry’ trademarks. Retail purchases are paid at
time of purchase while wholesale and licensing purchases are paid on short-term credit terms. Revenue is stated excluding Value Added
Tax and other sales-related taxes.
Retail and wholesale revenue
For retail and wholesale revenue, the primary performance obligation is the transfer of luxury goods to the customer. For retail revenue
this is considered to occur when control of the goods passes to the customer. For in-store retail revenue, control transfers when the
customer takes possession of the goods in store and pays for the goods. For digital retail revenue, control is considered to transfer when
the goods are delivered to the customer. The timing of transfer of control of the goods in wholesale transactions depends upon the terms
of trade in the contract. Principally for wholesale revenue, revenue is recognised either when goods are collected by the customer from
the Group’s premises, or when the Group has delivered the goods to the location specified in the contract. Provision for returns and
other allowances are reflected in revenue when revenue from the customer is first recognised. A sales return liability and a corresponding
return asset within gross inventory are recognised. Retail customers typically have the right to return product within a limited time frame
while wholesale customers typically have the right to return damaged and, under agreement, certain current season products. Returns
are initially estimated based on historical levels and adjusted subsequently as returns are incurred.
Some wholesale contracts may require the Group to make payments to the wholesale customer for services directly relating to the sale
of the Group’s goods, such as the cost of staff handling the Group’s goods at the wholesaler. Payments to the customer directly relating
to the sale of goods to the customer are recognised as a reduction in revenue, unless in exchange for a distinct good or service. These
charges are recognised in revenue at the later of when the sale of the related goods to the customer is recognised or when the customer
is paid, or promised to be paid, for the service. Payments to the customer relating to a service which is distinct from the sale of goods
to the customer are recognised in operating costs.
The Group sells gift cards and similar products to customers which can be redeemed for goods, up to the value of the card, at a future
date. Revenue relating to gift cards is recognised when the card is redeemed, up to the value of the redemption. Unredeemed amounts
on gift cards are classified as contract liabilities. Typically, the Group does not expect to have significant unredeemed amounts arising
on its gift cards.
Licensing revenue
The Group’s licences entitle the licensee to access the Group’s trademarks over the term of the licence. Hence revenue from licensing
is recognised over the term of access to the licence. Royalties receivable under licence agreements are usually based on production
or sales volumes and are accrued in revenue as the subsequent production or sale occurs. Any amounts received which have not been
recognised in revenue are classified as contract liabilities.
b) Segment reporting
As required by IFRS 8 Operating Segments, the segmental information presented in the financial statements is reported in a manner
consistent with the internal reporting provided to the Chief Operating Decision Maker. The Chief Operating Decision Maker, who
is responsible for allocating resources and assessing performance, has been identified as the Board of Directors.
The Group has centralised activities for designing, making and sourcing which ensure a global product offering is sold through retail
and wholesale channels worldwide. Resource allocation and performance is assessed across the whole of the retail/wholesale channel
globally. Hence the retail/wholesale channel has been determined to be an operating segment.
Licensed products are manufactured and sold by third-party licensees. As a result, this channel is assessed discretely by the Chief
Operating Decision Maker and has been determined to be an operating segment.
The Group presents an analysis of its revenue by channel, by product division and by geographical destination.
c) Business combinations
The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition
is measured as the fair value of the assets given, equity instruments issued and liabilities assumed at the date of exchange. Contingent
payments are subsequently remeasured at fair value through the Income Statement. All transaction costs are expensed to the Income
Statement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured
initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest. Non-controlling interests
in subsidiaries are identified separately from the Group’s equity, and are initially measured either at fair value or at a value equal to the
non-controlling interests’ share of the identifiable net assets acquired. The choice of the basis of measurement is an accounting policy
choice for each individual business combination. The excess of the cost of acquisition together with the value of any non-controlling
interest over the fair value of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair
value of the net assets of the subsidiary acquired, the difference is recognised directly in the Income Statement.
Burberry Annual Report 2025/26200

Financial Statements | Notes to the Financial Statements
202 Burberry Annual Report 25/26
2. Accounting policies continued
d) Share schemes
The Group operates a number of equity-settled share-based compensation schemes under which services are received from employees
(including Executive Directors) as consideration for equity instruments of the Company. The cost of the share-based incentives is
measured with reference to the fair value of the equity instruments awarded at the date of grant, including share awards and options.
Appropriate option pricing models, including Black-Scholes, are used to determine the fair value of the option awards made. The fair
value takes into account the impact of any market performance conditions, but the impact of non-market performance conditions is not
considered in determining the fair value on the date of grant. Vesting conditions which relate to non-market conditions are allowed for
in the assumptions used for the number of share awards or options expected to vest. The estimate of the number of share awards
or options expected to vest is revised at each balance sheet date.
In some circumstances, employees may provide services in advance of the grant date. The grant date fair value is estimated for the
purposes of recognising the expense during the period between the service commencement period and the grant date.
The cost of the share-based incentives is recognised as an expense over the vesting period of the share awards, or options, with
a corresponding credit in equity.
When share awards or options are exercised, they are settled either via the issue of new shares in the Company, or through shares held
in an Employee Share Option Plan trust or The Burberry Group plc SIP Trust (collectively known as the ESOP trusts), depending on the
terms and conditions of the relevant scheme. For new shares issued, the proceeds received from the exercise of share options, net
of any directly attributable transaction costs, are credited to share capital and share premium accounts. When ESOP shares are used,
any difference between the exercise price and their cost is recognised in retained earnings.
e) Leases
The Group is a lessee of property, plant and equipment. A contract is, or contains, a lease if the contract conveys the right to control the
use of an identified asset for a period of time in exchange for consideration. An identified asset may be specifically or implicitly specified.
Control exists when the lessee has both the right to direct the use of the identified asset and the right to obtain substantially all of the
economic benefits from that use.
Lessee accounting
The Group’s principal lease arrangements where the Group acts as the lessee are for property, most notably the lease of retail stores,
corporate offices and warehouses. Other leases are for advertising fixtures, office equipment, vehicles, and supply chain equipment.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
The Group recognises all lease liabilities and the corresponding right-of-use assets on the Balance Sheet, with the exception of certain
short-term leases (12 months or less) and leases of low value assets, which are expensed as incurred. Leases and the corresponding
right-of-use assets are initially recognised when the Group obtains control of the underlying asset. Leases for new assets are presented
as additions to lease liabilities and right-of-use assets.
Lease liabilities are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:
• Fixed payments, less any incentives
• Variable lease payments that are based on a future index or rate
• Amounts expected to be payable by the lessee under residual value guarantees
Where the lease contains an extension option or a termination option which is exercisable by the Group, as lessee, an assessment is
made as to whether the Group is reasonably certain to exercise the extension option, or not exercise the termination option, considering
all relevant facts and circumstances that create an economic incentive. Considerations may include the contractual terms and conditions
for the optional periods compared to market rates, costs associated with the termination of the lease and the importance of the
underlying asset to the Group’s operations.
Variable lease payments dependent upon a future index or rate are measured using the amounts payable at the commencement date until
the index or rate is known. Variable lease payments not dependent on an index or rate, including lease payments based on a percentage
of turnover, are excluded from the calculation of lease liabilities.
Payments are discounted at the incremental borrowing rate of the lessee, unless the interest rate implicit in the lease can be readily
determined.
Right-of-use assets are classified as property or non-property. The Group has elected not to apply the short-term exemption to the
property class of right-of-use assets. Where the exemption is applied to the non-property class of right-of-use assets, lease payments
are expensed as incurred. The low value asset exemption has been applied to the non-property class of assets where applicable.
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 201
2. Accounting policies
The material accounting policies of the Group are:
a) Revenue
The Group obtains revenue from contracts relating to sales of luxury goods to retail and wholesale customers. The Group also obtains
revenue through licences issued to third parties to produce and sell goods carrying ‘Burberry’ trademarks. Retail purchases are paid at
time of purchase while wholesale and licensing purchases are paid on short-term credit terms. Revenue is stated excluding Value Added
Tax and other sales-related taxes.
Retail and wholesale revenue
For retail and wholesale revenue, the primary performance obligation is the transfer of luxury goods to the customer. For retail revenue
this is considered to occur when control of the goods passes to the customer. For in-store retail revenue, control transfers when the
customer takes possession of the goods in store and pays for the goods. For digital retail revenue, control is considered to transfer when
the goods are delivered to the customer. The timing of transfer of control of the goods in wholesale transactions depends upon the terms
of trade in the contract. Principally for wholesale revenue, revenue is recognised either when goods are collected by the customer from
the Group’s premises, or when the Group has delivered the goods to the location specified in the contract. Provision for returns and
other allowances are reflected in revenue when revenue from the customer is first recognised. A sales return liability and a corresponding
return asset within gross inventory are recognised. Retail customers typically have the right to return product within a limited time frame
while wholesale customers typically have the right to return damaged and, under agreement, certain current season products. Returns
are initially estimated based on historical levels and adjusted subsequently as returns are incurred.
Some wholesale contracts may require the Group to make payments to the wholesale customer for services directly relating to the sale
of the Group’s goods, such as the cost of staff handling the Group’s goods at the wholesaler. Payments to the customer directly relating
to the sale of goods to the customer are recognised as a reduction in revenue, unless in exchange for a distinct good or service. These
charges are recognised in revenue at the later of when the sale of the related goods to the customer is recognised or when the customer
is paid, or promised to be paid, for the service. Payments to the customer relating to a service which is distinct from the sale of goods
to the customer are recognised in operating costs.
The Group sells gift cards and similar products to customers which can be redeemed for goods, up to the value of the card, at a future
date. Revenue relating to gift cards is recognised when the card is redeemed, up to the value of the redemption. Unredeemed amounts
on gift cards are classified as contract liabilities. Typically, the Group does not expect to have significant unredeemed amounts arising
on its gift cards.
Licensing revenue
The Group’s licences entitle the licensee to access the Group’s trademarks over the term of the licence. Hence revenue from licensing
is recognised over the term of access to the licence. Royalties receivable under licence agreements are usually based on production
or sales volumes and are accrued in revenue as the subsequent production or sale occurs. Any amounts received which have not been
recognised in revenue are classified as contract liabilities.
b) Segment reporting
As required by IFRS 8 Operating Segments, the segmental information presented in the financial statements is reported in a manner
consistent with the internal reporting provided to the Chief Operating Decision Maker. The Chief Operating Decision Maker, who
is responsible for allocating resources and assessing performance, has been identified as the Board of Directors.
The Group has centralised activities for designing, making and sourcing which ensure a global product offering is sold through retail
and wholesale channels worldwide. Resource allocation and performance is assessed across the whole of the retail/wholesale channel
globally. Hence the retail/wholesale channel has been determined to be an operating segment.
Licensed products are manufactured and sold by third-party licensees. As a result, this channel is assessed discretely by the Chief
Operating Decision Maker and has been determined to be an operating segment.
The Group presents an analysis of its revenue by channel, by product division and by geographical destination.
c) Business combinations
The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition
is measured as the fair value of the assets given, equity instruments issued and liabilities assumed at the date of exchange. Contingent
payments are subsequently remeasured at fair value through the Income Statement. All transaction costs are expensed to the Income
Statement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured
initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest. Non-controlling interests
in subsidiaries are identified separately from the Group’s equity, and are initially measured either at fair value or at a value equal to the
non-controlling interests’ share of the identifiable net assets acquired. The choice of the basis of measurement is an accounting policy
choice for each individual business combination. The excess of the cost of acquisition together with the value of any non-controlling
interest over the fair value of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair
value of the net assets of the subsidiary acquired, the difference is recognised directly in the Income Statement.
Burberry Annual Report 2025/26 201

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 203
2. Accounting policies continued
e) Leases continued
Lessee accounting continued
In circumstances where the Group is in possession of a property but there is no executed agreement or other binding obligation in
relation to the property, rent is expensed until such time the obligation becomes binding, at which point, a right-of-use asset and lease
liability will be recognised prospectively. These lease costs are disclosed as lease in holdover expenses. Refer to notes 5 and 21.
Right-of-use assets are measured at cost comprising the following:
• The amount of the initial measurement of the lease liability
• Any lease payments made at or before the commencement date less any lease incentives received and
• Any initial direct costs incurred in entering into the lease
The Group recognises depreciation of right-of-use assets and interest on lease liabilities in the Income Statement over the lease term.
Repayments of lease liabilities are classified separately in the Statement of Cash Flows where the cash payments for the principal portion
of the lease liability are presented within financing activities, and cash payments for the interest portion are presented within operating
activities. Payments in relation to variable lease payments based on turnover, short-term leases and leases of low value assets which are
not included on the Balance Sheet are included within operating expenses.
Modifications to lease agreements, extensions to existing lease agreements and changes to future lease payments relating to existing
terms in the contract, including market rent reassessments and index-based changes, are presented as remeasurements of the lease
liabilities. The related right-of-use asset is also remeasured. If the modification results in a reduction in scope of the lease, either through
shortening the lease term or through disposing of part of the underlying asset, a gain or loss on disposal may arise relating to the
difference between the lease liabilities and the right-of-use asset applicable to the reduction in scope.
Right-of-use assets are included in the review for impairment of property, plant and equipment and intangible assets with finite economic
lives, if there is an indication that the carrying amount of the cash generating unit may not be recoverable.
f) Dividend distributions
Dividend distributions to Burberry Group plc’s shareholders are recognised as a liability in the period in which the dividend becomes
a committed obligation. Final dividends are recognised when they are approved by the shareholders. Interim dividends are recognised
when paid.
g) Pension costs
Eligible employees participate in defined contribution pension schemes, the principal one being in the UK with its assets held in an
independently administered fund. The cost of providing these benefits to participating employees is recognised in the Income Statement
as they fall due and comprises the amount of contributions from the Group to the schemes.
h) Intangible assets
Goodwill
Goodwill is the excess of the cost of acquisition together with the value of any non-controlling interest, over the fair value of identifiable
net assets acquired. Goodwill on acquisition is recorded as an intangible asset. Fair values are attributed to the identifiable assets,
liabilities and contingent liabilities that existed at the date of acquisition, reflecting their condition at that date. Adjustments are also
made to align the accounting policies of acquired businesses with those of the Group.
Goodwill is assigned an indefinite useful life. Impairment reviews are performed annually, or more frequently if events or changes
in circumstances indicate that the carrying value may not be recoverable. Impairment losses recognised on goodwill are not reversed
in future periods.
Trademarks, licences and other intangible assets
The cost of securing and renewing trademarks and licences, and the cost of acquiring other intangible assets, is capitalised at purchase
price, or fair value if acquired through a business combination, and amortised by equal annual instalments over the period in which benefits
are expected to accrue, typically 10 years for trademarks, or the term of the licence. The useful life of trademarks and other intangible
assets is determined on a case-by-case basis, in accordance with the terms of the underlying agreement and the nature of the asset.
Computer software
Computer software costs are capitalised during the development phase at the point at which there is sufficient certainty that the software
will deliver future economic benefits to the Group. The cost of acquiring computer software (including licences and separately identifiable
development costs) is capitalised as an intangible asset at purchase price, plus any directly attributable cost of preparing that asset for
its intended use. Software costs are amortised on a straight-line basis over their estimated useful lives, which may be up to seven years.
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2. Accounting policies continued
i) Property, plant and equipment
Property, plant and equipment, with the exception of assets in the course of construction, is stated at cost or deemed cost based on
historical revalued amounts prior to the adoption of IFRS, less accumulated depreciation and provision to reflect any impairment in value.
Assets in the course of construction are stated at cost less any provision for impairment and transferred to completed assets when
substantially all of the activities necessary for the asset to be ready for use have occurred. Cost includes the original purchase price
of the asset and costs attributable to bringing the asset to its working condition for its intended use.
Depreciation
Depreciation of property, plant and equipment is calculated to write off the cost or deemed cost, less residual value, of the assets
in equal annual instalments over their estimated useful lives at the following rates:
Type of asset
Category of property, plant and equipment
Useful life
Land
Freehold land and buildings
Not depreciated
Freehold buildings
Freehold land and buildings
Up to 50 years
Leasehold improvements
Leasehold improvements
Over the unexpired term of the lease
Plant and machinery
Fixtures, fittings and equipment
Up to 15 years
Retail fixtures and fittings
Fixtures, fittings and equipment
Up to 5 years
Office fixtures and fittings
Fixtures, fittings and equipment
Up to 5 years
Computer equipment
Fixtures, fittings and equipment
Up to 7 years
Assets in the course of construction
Assets in the course of construction
Not depreciated
Profit/loss on disposal of property, plant and equipment and intangible assets
Profits and losses on the disposal of property, plant and equipment and intangible assets represent the difference between
the net proceeds and net book value at the date of sale or disposal. Disposals are accounted for when the relevant transaction
becomes unconditional.
j) Impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets under
construction are also tested annually. Assets that are subject to amortisation or depreciation are reviewed for impairment whenever
events or changes in circumstance indicate that the carrying value may not be recoverable. An impairment loss is recognised for the
amount by which the carrying value exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less
costs to sell and value-in-use. For the purposes of assessing impairment, retail assets are grouped at the lowest levels for which there
are separately identifiable cash inflows, being individual stores (cash generating units), and goodwill assets are considered at the lowest
level being monitored by management. Non-financial assets, other than goodwill, for which an impairment has been previously
recognised, are reviewed for possible reversal of impairment at each reporting date.
k) Inventories
Inventories are stated at the lower of cost and net realisable value. Cost consists of all costs of purchase, costs of conversion, design
costs and other costs incurred in bringing the inventories to their first point of sale location and condition. The cost of inventories
is determined using a weighted average cost method, taking account of the fashion seasons for which the inventory was offered.
Where necessary, provision is made to reduce cost to no more than net realisable value having regard to the nature and condition
of inventory, as well as its anticipated utilisation and saleability .
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 203
2. Accounting policies continued
e) Leases continued
Lessee accounting continued
In circumstances where the Group is in possession of a property but there is no executed agreement or other binding obligation in
relation to the property, rent is expensed until such time the obligation becomes binding, at which point, a right-of-use asset and lease
liability will be recognised prospectively. These lease costs are disclosed as lease in holdover expenses. Refer to notes 5 and 21.
Right-of-use assets are measured at cost comprising the following:
• The amount of the initial measurement of the lease liability
• Any lease payments made at or before the commencement date less any lease incentives received and
• Any initial direct costs incurred in entering into the lease
The Group recognises depreciation of right-of-use assets and interest on lease liabilities in the Income Statement over the lease term.
Repayments of lease liabilities are classified separately in the Statement of Cash Flows where the cash payments for the principal portion
of the lease liability are presented within financing activities, and cash payments for the interest portion are presented within operating
activities. Payments in relation to variable lease payments based on turnover, short-term leases and leases of low value assets which are
not included on the Balance Sheet are included within operating expenses.
Modifications to lease agreements, extensions to existing lease agreements and changes to future lease payments relating to existing
terms in the contract, including market rent reassessments and index-based changes, are presented as remeasurements of the lease
liabilities. The related right-of-use asset is also remeasured. If the modification results in a reduction in scope of the lease, either through
shortening the lease term or through disposing of part of the underlying asset, a gain or loss on disposal may arise relating to the
difference between the lease liabilities and the right-of-use asset applicable to the reduction in scope.
Right-of-use assets are included in the review for impairment of property, plant and equipment and intangible assets with finite economic
lives, if there is an indication that the carrying amount of the cash generating unit may not be recoverable.
f) Dividend distributions
Dividend distributions to Burberry Group plc’s shareholders are recognised as a liability in the period in which the dividend becomes
a committed obligation. Final dividends are recognised when they are approved by the shareholders. Interim dividends are recognised
when paid.
g) Pension costs
Eligible employees participate in defined contribution pension schemes, the principal one being in the UK with its assets held in an
independently administered fund. The cost of providing these benefits to participating employees is recognised in the Income Statement
as they fall due and comprises the amount of contributions from the Group to the schemes.
h) Intangible assets
Goodwill
Goodwill is the excess of the cost of acquisition together with the value of any non-controlling interest, over the fair value of identifiable
net assets acquired. Goodwill on acquisition is recorded as an intangible asset. Fair values are attributed to the identifiable assets,
liabilities and contingent liabilities that existed at the date of acquisition, reflecting their condition at that date. Adjustments are also
made to align the accounting policies of acquired businesses with those of the Group.
Goodwill is assigned an indefinite useful life. Impairment reviews are performed annually, or more frequently if events or changes
in circumstances indicate that the carrying value may not be recoverable. Impairment losses recognised on goodwill are not reversed
in future periods.
Trademarks, licences and other intangible assets
The cost of securing and renewing trademarks and licences, and the cost of acquiring other intangible assets, is capitalised at purchase
price, or fair value if acquired through a business combination, and amortised by equal annual instalments over the period in which benefits
are expected to accrue, typically 10 years for trademarks, or the term of the licence. The useful life of trademarks and other intangible
assets is determined on a case-by-case basis, in accordance with the terms of the underlying agreement and the nature of the asset.
Computer software
Computer software costs are capitalised during the development phase at the point at which there is sufficient certainty that the software
will deliver future economic benefits to the Group. The cost of acquiring computer software (including licences and separately identifiable
development costs) is capitalised as an intangible asset at purchase price, plus any directly attributable cost of preparing that asset for
its intended use. Software costs are amortised on a straight-line basis over their estimated useful lives, which may be up to seven years.
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Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 205
2. Accounting policies continued
l) Taxation
Tax expense represents the sum of the current tax expense and the deferred tax charge.
Current tax is based on taxable profit for the year. Taxable profit differs from profit or loss as reported in the Income Statement because
it excludes items of income or expense which are taxable or deductible in other years and it further excludes items which are never
taxable or deductible. The Group’s liability for current tax is calculated using tax rates which have been enacted or substantively enacted
at the balance sheet date.
Deferred tax is recognised, using the liabilities method, on temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the consolidated financial statements. However, if the temporary difference arises from the initial
recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss, and does not give rise to equal taxable and deductible temporary differences, no deferred tax will
be recognised. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted at the balance
sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the
temporary differences can be utilised.
Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the
temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax
liabilities and when deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entities or different taxable entities where there is an intention to settle the balances on a net basis.
m) Provisions
Provisions are recognised when there is a present legal or constructive obligation as a result of past events, for which it is probable
that an outflow of economic benefits will be required to settle the obligation, and where the amount of the obligation can be reliably
estimated. When the effect of the time value of money is material, provision amounts are calculated based on the present value of
the expenditures expected to be required to settle the obligation. The present value is calculated using forward market interest rates
as measured at the balance sheet reporting date, which have been adjusted for risks specific to the future obligation.
Property obligations
A provision for the present value of future property reinstatement costs is recognised where there is an obligation to return the leased
property to its original condition at the end of a lease term. The reinstatement cost at the end of a lease usually arises due to leasehold
improvements and modifications carried out by the Group in order to customise the property during tenure of the lease. As a result,
the cost of the reinstatement provision is recognised as a component of the cost of the leasehold improvements in property, plant and
equipment when these are installed and amortised to the Income Statement over the expected life of the lease.
n) Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity
as a deduction, net of tax, from the proceeds.
Where any Group company purchases the Company’s equity share capital (treasury shares), the consideration paid, including any directly
attributable incremental costs, is deducted from retained earnings. Where such shares are subsequently cancelled, a transfer is made
from retained earnings to the capital reserve, equivalent to the nominal value of the shares purchased and subsequently cancelled.
Where such shares are subsequently sold or reissued, any consideration received, net of any directly attributable incremental transaction
costs and the related income tax effects, is credited to retained earnings up to the value of the consideration originally paid. Any additional
consideration received is credited to the share premium account included in equity attributable to owners of the Company.
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206 Burberry Annual Report 25/26
2. Accounting policies continued
o) Financial instruments
Financial instruments are initially recognised at fair value plus directly attributable transaction costs on the Balance Sheet when the entity
becomes a party to the contractual provisions of the instrument. A financial asset is derecognised when the contractual rights to the cash
flow expire or substantially all risks and rewards of the asset are transferred. A financial liability is derecognised when the obligation
specified in the contract is discharged, cancelled or expires.
At initial recognition, all financial liabilities are stated at fair value. Subsequent to initial recognition, all financial liabilities are stated at
amortised cost using the effective interest rate method, except for derivatives which are held at fair value and which are classified as fair
value through profit and loss, except where they qualify for hedge accounting. Financial assets are classified as either amortised cost
or fair value through profit and loss depending on their cash flow characteristics. Assets with cash flows that solely represent payments
of principal and interest are measured at amortised cost. The fair value of the Group’s financial assets and liabilities held at amortised
cost mostly approximate their carrying amount due to the short maturity of these instruments. Where the fair value of any financial asset
or liability held at amortised cost is materially different to the book value, the fair value is disclosed.
The Group classifies its instruments in the following categories:
Financial instrument category
Note
Classification
Measurement
hierarchy
2
Cash and cash equivalents
19
Amortised cost
Amortised cost
N/A
Cash and cash equivalents
19
Fair value through profit and loss
Fair value through profit and loss
2
Trade and other receivables
16
Amortised cost
Amortised cost
N/A
Trade and other payables
20
Other financial liabilities
Amortised cost
N/A
Borrowings
23
Other financial liabilities
Amortised cost
N/A
Leases
21
Lease liabilities
Amortised cost
N/A
Deferred consideration
20
Fair value through profit and loss
Fair value through profit and loss
3
Derivative contracts
18
Fair value through profit and loss
Fair value through profit and loss
2
Derivative contracts used for hedging
1
18
Fair value – hedging instrument
Fair value – hedging instrument
3
2
1. Cash flow hedge and net investment hedge accounting is applied to the extent it is achievable.
2. The fair value measurement hierarchy is only applicable for financial instruments measured at fair value.
3. Derivative contracts used for hedging are classified as Fair value – hedging instruments under IFRS 9, however IAS 39 hedge accounting has been applied.
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.
The fair value of the contingent payment component of deferred consideration is considered to be a Level 3 measurement and is derived
using a present value calculation, incorporating observable and non-observable inputs. This valuation technique has been adopted
as it most closely mirrors the contractual arrangement.
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 205
2. Accounting policies continued
l) Taxation
Tax expense represents the sum of the current tax expense and the deferred tax charge.
Current tax is based on taxable profit for the year. Taxable profit differs from profit or loss as reported in the Income Statement because
it excludes items of income or expense which are taxable or deductible in other years and it further excludes items which are never
taxable or deductible. The Group’s liability for current tax is calculated using tax rates which have been enacted or substantively enacted
at the balance sheet date.
Deferred tax is recognised, using the liabilities method, on temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the consolidated financial statements. However, if the temporary difference arises from the initial
recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss, and does not give rise to equal taxable and deductible temporary differences, no deferred tax will
be recognised. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted at the balance
sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the
temporary differences can be utilised.
Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the
temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax
liabilities and when deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entities or different taxable entities where there is an intention to settle the balances on a net basis.
m) Provisions
Provisions are recognised when there is a present legal or constructive obligation as a result of past events, for which it is probable
that an outflow of economic benefits will be required to settle the obligation, and where the amount of the obligation can be reliably
estimated. When the effect of the time value of money is material, provision amounts are calculated based on the present value of
the expenditures expected to be required to settle the obligation. The present value is calculated using forward market interest rates
as measured at the balance sheet reporting date, which have been adjusted for risks specific to the future obligation.
Property obligations
A provision for the present value of future property reinstatement costs is recognised where there is an obligation to return the leased
property to its original condition at the end of a lease term. The reinstatement cost at the end of a lease usually arises due to leasehold
improvements and modifications carried out by the Group in order to customise the property during tenure of the lease. As a result,
the cost of the reinstatement provision is recognised as a component of the cost of the leasehold improvements in property, plant and
equipment when these are installed and amortised to the Income Statement over the expected life of the lease.
n) Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity
as a deduction, net of tax, from the proceeds.
Where any Group company purchases the Company’s equity share capital (treasury shares), the consideration paid, including any directly
attributable incremental costs, is deducted from retained earnings. Where such shares are subsequently cancelled, a transfer is made
from retained earnings to the capital reserve, equivalent to the nominal value of the shares purchased and subsequently cancelled.
Where such shares are subsequently sold or reissued, any consideration received, net of any directly attributable incremental transaction
costs and the related income tax effects, is credited to retained earnings up to the value of the consideration originally paid. Any additional
consideration received is credited to the share premium account included in equity attributable to owners of the Company.
Burberry Annual Report 2025/26 205

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 207
2. Accounting policies continued
o) Financial instruments continued
The Group’s primary categories of financial instruments are listed below:
Cash and cash equivalents
Cash and short-term deposits on the Balance Sheet comprise cash at banks and in hand, cash in transit and short-term highly liquid
deposits with a maturity of three months or less that are readily convertible to a known amount of cash and subject to an insignificant
risk of changes in value. Cash in transit largely comprises amounts receivable on credit cards where the transaction has been authorised,
but the funds have yet to clear the bank. These balances are considered to be highly liquid, with minimal risk of default, and are typically
received in less than three days. In the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts, which are
recorded under current liabilities on the Balance Sheet.
While cash at bank and in hand and cash in transit are classified as amortised cost, some short-term deposits are classified as fair value
through profit and loss.
Cash and cash equivalents held at amortised cost are subject to impairment testing at each period end.
Trade and other receivables
Trade and other receivables are included in current assets, except for maturities greater than 12 months after the balance sheet date.
Most receivables are held with the objective to collect the contractual cash flows and are therefore initially recognised at fair value and
subsequently measured at amortised cost using the effective interest rate method, less provision for impairment. A provision for the
expected credit losses on trade receivables is established at inception. Expected credit loss rates are calculated by reviewing lifetime
expected credit losses using historic and forward-looking data. The amount of the movement in the provision is recognised in the
Income Statement.
Trade and other payables
Trade and other payables are included in current liabilities, except for maturities greater than 12 months after the balance sheet date.
Payables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate method.
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised
cost and the difference between the proceeds (net of transaction costs) and the redemption value is recognised in the Income Statement
over the period of the borrowings.
Deferred consideration
Deferred consideration is initially recognised at the present value of the expected future payments. It is subsequently remeasured at
fair value at each reporting period with the change in fair value relating to changes in expected future payments recorded in the Income
Statement as an operating expense or income. Changes in fair value relating to unwinding of discounting to present value are recorded
as a financing expense.
Derivative instruments
The Group uses derivative financial instruments to hedge its exposure to fluctuations in foreign exchange and interest rates arising
on certain operating and financing transactions.
Derivatives instruments are initially recognised at fair value at the trade date and are remeasured at their fair value at subsequent
balance sheet dates. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging
instrument, and if so, the nature of the item being hedged. Where derivatives do not qualify for hedge accounting, any gains or losses
on remeasurement are recognised in the Income Statement as an operating expense or income.
On adoption of IFRS 9, the Group elected to continue to apply the hedge accounting guidance in IAS 39 Financial Instruments:
Recognition and Measurement.
Fair value hedge accounting
Derivative instruments are classified as fair value hedges when they hedge the Group’s exposure to changes in the fair value of
a recognised asset or liability. Changes in fair value of the derivative instrument are recognised as part of the carrying value of the derivative
instrument and in the Income Statement. Changes in fair value of the hedged item attributable to the hedged risk are recognised as part
of the carrying value of the hedged item and in the Income Statement
If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of the hedged item is amortised
to the Income Statement over the remaining period to maturity.
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Financial Statements | Notes to the Financial Statements
208 Burberry Annual Report 25/26
2. Accounting policies continued
o) Financial instruments continued
Derivative instruments continued
Cash flow hedge accounting
Derivative instruments are classified as cash flow hedges when they hedge the Group’s exposure to changes in cash flows that are attributable
to particular risk associated with a recognised asset or liability, an unrecognised firm commitment or a highly probable forecast transaction.
The effective portion of changes in the fair value relating to derivative instruments that are designated and qualify as cash flow hedges
is deferred in other comprehensive income. The gain or loss relating to the ineffective portion of the gain or loss is recognised immediately
in the Income Statement. Amounts deferred in other comprehensive income are recycled through the Income Statement in the periods
when the hedged item affects the Income Statement. When a hedging instrument expires or is sold, the hedge relationship is terminated
or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at the time remains
in other comprehensive income and is recognised when the forecast transaction is ultimately recognised in the Income Statement.
When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately
transferred to the Income Statement.
p) Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic
environment in which the entity operates (the functional currency). The consolidated financial statements are presented in sterling which
is the Company’s functional and the Group’s presentation currency.
Transactions in foreign currencies
Transactions denominated in foreign currencies within each entity in the Group are translated into the functional currency at the
exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies which are held
at the year end, are translated into the functional currency at the exchange rate ruling at the balance sheet date (closing rate). Exchange
differences on monetary items are recognised in the Income Statement in the period in which they arise, except where these exchange
differences form part of a net investment in overseas subsidiaries of the Group, in which case such differences are recognised in other
comprehensive income.
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 date 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 translated at the closing rate.
The principal exchange rates used were as follows:
Average rate
Closing rate
Euro
1.16
1.19
1.15
1.20
US Dollar
1.34
1.28
1.33
1.29
Chinese Yuan Renminbi
9.50
9.21
9.17
9.40
Hong Kong Dollar
10.47
9.98
10.38
10.07
South Korean Won
1,917
1,781
2,004
1,903
Japanese Yen
203
194
213
194
q) 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 taxation 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 6 for further details on adjusting items and note 10 for details on adjusted earnings per share.
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 207
2. Accounting policies continued
o) Financial instruments continued
The Group’s primary categories of financial instruments are listed below:
Cash and cash equivalents
Cash and short-term deposits on the Balance Sheet comprise cash at banks and in hand, cash in transit and short-term highly liquid
deposits with a maturity of three months or less that are readily convertible to a known amount of cash and subject to an insignificant
risk of changes in value. Cash in transit largely comprises amounts receivable on credit cards where the transaction has been authorised,
but the funds have yet to clear the bank. These balances are considered to be highly liquid, with minimal risk of default, and are typically
received in less than three days. In the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts, which are
recorded under current liabilities on the Balance Sheet.
While cash at bank and in hand and cash in transit are classified as amortised cost, some short-term deposits are classified as fair value
through profit and loss.
Cash and cash equivalents held at amortised cost are subject to impairment testing at each period end.
Trade and other receivables
Trade and other receivables are included in current assets, except for maturities greater than 12 months after the balance sheet date.
Most receivables are held with the objective to collect the contractual cash flows and are therefore initially recognised at fair value and
subsequently measured at amortised cost using the effective interest rate method, less provision for impairment. A provision for the
expected credit losses on trade receivables is established at inception. Expected credit loss rates are calculated by reviewing lifetime
expected credit losses using historic and forward-looking data. The amount of the movement in the provision is recognised in the
Income Statement.
Trade and other payables
Trade and other payables are included in current liabilities, except for maturities greater than 12 months after the balance sheet date.
Payables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate method.
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised
cost and the difference between the proceeds (net of transaction costs) and the redemption value is recognised in the Income Statement
over the period of the borrowings.
Deferred consideration
Deferred consideration is initially recognised at the present value of the expected future payments. It is subsequently remeasured at
fair value at each reporting period with the change in fair value relating to changes in expected future payments recorded in the Income
Statement as an operating expense or income. Changes in fair value relating to unwinding of discounting to present value are recorded
as a financing expense.
Derivative instruments
The Group uses derivative financial instruments to hedge its exposure to fluctuations in foreign exchange and interest rates arising
on certain operating and financing transactions.
Derivatives instruments are initially recognised at fair value at the trade date and are remeasured at their fair value at subsequent
balance sheet dates. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging
instrument, and if so, the nature of the item being hedged. Where derivatives do not qualify for hedge accounting, any gains or losses
on remeasurement are recognised in the Income Statement as an operating expense or income.
On adoption of IFRS 9, the Group elected to continue to apply the hedge accounting guidance in IAS 39 Financial Instruments:
Recognition and Measurement.
Fair value hedge accounting
Derivative instruments are classified as fair value hedges when they hedge the Group’s exposure to changes in the fair value of
a recognised asset or liability. Changes in fair value of the derivative instrument are recognised as part of the carrying value of the derivative
instrument and in the Income Statement. Changes in fair value of the hedged item attributable to the hedged risk are recognised as part
of the carrying value of the hedged item and in the Income Statement
If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of the hedged item is amortised
to the Income Statement over the remaining period to maturity.
Burberry Annual Report 2025/26 207

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 209
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 speciality 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 USA, Mainland China and Hong Kong S.A.R.,
China.
Licensing revenues are generated through the receipt of royalties from global licensees of beauty products and 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
Retail
2,056
2,076
–
–
2,056
2,076
Wholesale
303
319
–
–
303
319
Licensing
–
–
62
67
62
67
Total segment revenue
2,359
2,395
62
67
2,421
2,462
Inter-segment revenue
1
–
–
(1)
(1)
(1)
(1)
Revenue from external customers
2,359
2,395
61
66
2,420
2,461
Depreciation and amortisation
2
(375)
(413)
–
–
(375)
(413)
Impairment charge of intangible assets
(4)
(4)
–
–
(4)
(4)
Net impairment charge of property, plant and
equipment
(3)
(10)
–
–
(3)
(10)
Net impairment charge of
right-of-use assets
3
(7)
(32)
–
–
(7)
(32)
Net movement in inventory provisions
(10)
(44)
–
–
(10)
(44)
Other non-cash items:
Share-based payments
(21)
(18)
–
–
(21)
(18)
Adjusted operating profit/(loss)
103
(36)
57
62
160
26
Adjusting items
4
(45)
(29)
Operating profit/(loss)
115
(3)
Finance income
23
25
Finance expense
(89)
(88)
Profit/(loss) before taxation
49
(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. For the 52 weeks to 29 March 2025, depreciation of right-of-use assets was presented including a charge of £1 million arising as a result of the Group’s restructuring programme,
which was presented as an adjusting item (refer to note 6).
3. For the 52 weeks to 29 March 2025, impairment charge of right-of-use assets was presented including £1 million in relation to non-retail right-of-use assets arising as a result
of the Group’s restructuring programme, which was presented as an adjusting item (refer to note 6).
4. Adjusting items relate to the Retail/Wholesale segment. Refer to note 6 for details of adjusting items.
Retail/Wholesale
Licensing
Total
Additions to non-current assets
155
217
–
–
155
217
Total segment assets
1,964
2,164
13
8
1,977
2,172
Goodwill
115
114
Cash and cash equivalents
671
813
Taxation
328
328
Total assets per Balance Sheet
3,091
3,427
Burberry Annual Report 2025/26208

Financial Statements | Notes to the Financial Statements
210 Burberry Annual Report 25/26
3. Segmental analysis continued
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
Accessories
837
841
Womenswear
728
718
Menswear
701
732
Childrenswear and other
93
104
Retail/Wholesale
2,359
2,395
Licensing
61
66
Total
2,420
2,461
Revenue by destination
EMEIA
1
821
842
Greater China
2,3
670
662
Americas
505
510
Asia Pacific
2,4
363
381
Retail/Wholesale
2,359
2,395
Licensing
61
66
Total
2,420
2,461
1. EMEIA comprises Europe, Middle East, India and Africa.
2. 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 52 weeks to 29 March 2025, revenue attributable to Asia Pacific decreased by £662 million with that revenue
now attributable to Greater China.
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.
Entity-wide disclosures
Revenue derived from external customers in the UK totalled £203 million for the 52 weeks to 28 March 2026 (last year: £208 million).
Revenue derived from external customers in foreign countries totalled £2,217 million for the 52 weeks to 28 March 2026 (last year:
£2,253 million). This amount includes £437 million of external revenues derived from customers in the USA (last year: £447 million)
and £547 million of external revenues derived from customers in Mainland China (last year: £534 million).
The total of non-current assets, other than financial instruments, and deferred tax assets located in the UK is £396 million (last year:
£458 million). The remaining £925 million of non-current assets are located in other countries (last year: £1,041 million), with £295 million
located in the USA (last year: £330 million) and £148 million located in Mainland China (last year: £173 million).
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 209
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 speciality 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 USA, Mainland China and Hong Kong S.A.R.,
China.
Licensing revenues are generated through the receipt of royalties from global licensees of beauty products and 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
52 weeks to
28 March
2026
£m
52 weeks to
29 March
2025
£m
52 weeks to
28 March
2026
£m
52 weeks to
29 March
2025
£m
52 weeks to
28 March
2026
£m
52 weeks to
29 March
2025
£m
Retail
2,056
2,076
–
–
2,056
2,076
Wholesale
303
319
–
–
303
319
Licensing
–
–
62
67
62
67
Total segment revenue
2,359
2,395
62
67
2,421
2,462
Inter-segment revenue
1
–
–
(1)
(1)
(1)
(1)
Revenue from external customers
2,359
2,395
61
66
2,420
2,461
Depreciation and amortisation
2
(375)
(413)
–
–
(375)
(413)
Impairment charge of intangible assets
(4)
(4)
–
–
(4)
(4)
Net impairment charge of property, plant and
equipment
(3)
(10)
–
–
(3)
(10)
Net impairment charge of
right-of-use assets
3
(7)
(32)
–
–
(7)
(32)
Net movement in inventory provisions
(10)
(44)
–
–
(10)
(44)
Other non-cash items:
Share-based payments
(21)
(18)
–
–
(21)
(18)
Adjusted operating profit/(loss)
103
(36)
57
62
160
26
Adjusting items
4
(45)
(29)
Operating profit/(loss)
115
(3)
Finance income
23
25
Finance expense
(89)
(88)
Profit/(loss) before taxation
49
(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. For the 52 weeks to 29 March 2025, depreciation of right-of-use assets was presented including a charge of £1 million arising as a result of the Group’s restructuring programme,
which was presented as an adjusting item (refer to note 6).
3. For the 52 weeks to 29 March 2025, impairment charge of right-of-use assets was presented including £1 million in relation to non-retail right-of-use assets arising as a result
of the Group’s restructuring programme, which was presented as an adjusting item (refer to note 6).
4. Adjusting items relate to the Retail/Wholesale segment. Refer to note 6 for details of adjusting items.
Retail/Wholesale
Licensing
Total
52 weeks to
28 March
2026
£m
52 weeks to
29 March
2025
£m
52 weeks to
28 March
2026
£m
52 weeks to
29 March
2025
£m
52 weeks to
28 March
2026
£m
52 weeks to
29 March
2025
£m
Additions to non-current assets
155
217
–
–
155
217
Total segment assets
1,964
2,164
13
8
1,977
2,172
Goodwill
115
114
Cash and cash equivalents
671
813
Taxation
328
328
Total assets per Balance Sheet
3,091
3,427
Burberry Annual Report 2025/26 209

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 211
4. Net operating expenses
Other operating income
(11)
(23)
Selling and distribution costs
1,127
1,172
Administrative expenses
367
363
1,483
1,512
Adjusting operating expenses
6
45
29
45
29
Net operating expenses
1,528
1,541
5. Profit before taxation
Profit before taxation is stated after charging/(crediting):
Depreciation of property, plant and equipment
Within cost of sales
2
2
Within selling and distribution costs
91
93
Within administrative expenses
18
17
Depreciation of right-of-use assets
Within cost of sales
1
1
Within selling and distribution costs
1
207
225
Within administrative expenses
12
21
Amortisation of intangible assets
Within selling and distribution costs
–
1
Within administrative expenses
44
53
Net movement in inventory provisions within cost of sales
17
10
44
Gain on modification of right-of-use assets
(1)
(15)
Loss on disposal of property, plant and equipment
1
–
Net impairment charge of property, plant and equipment
13
3
10
Net impairment charge of right-of-use assets
2
14
7
32
Impairment charge of intangible assets
12
4
4
Employee costs
3
27
587
576
Other lease expense
Property lease variable lease expense
21
99
92
Property lease in holdover expense
21
12
8
Non-property short-term lease expense
21
6
9
Net exchange (gain)/loss on revaluation of monetary assets and liabilities
(10)
16
Net gain on derivatives – fair value through profit and loss
–
(21)
Receivables impairment charge
7
2
1. For the 52 weeks to 29 March 2025, depreciation of right-of-use assets was presented including a charge of £1 million arising as a result of the Group’s restructuring programme,
which was presented as an adjusting item (refer to note 6).
2. For the 52 weeks to 29 March 2025, impairment charge of right-of-use assets was presented including £1 million in relation to non-retail right-of-use assets arising as a result
of the Group’s restructuring programme, which was presented as an adjusting item (refer to note 6).
3. Employee costs for the 52 weeks to 28 March 2026 are presented including a charge of £33 million arising as a result of the Group’s restructuring programme (last year:
£16 million), which is presented as an adjusting item (refer to note 6).
Burberry Annual Report 2025/26210

Financial Statements | Notes to the Financial Statements
212 Burberry Annual Report 25/26
6. Adjusting items
Total adjusting operating items
45
29
Tax on adjusting items
(11)
(7)
Total adjusting items (post-tax)
34
22
Restructuring costs
During the 52 weeks to 28 March 2026, restructuring costs of £45 million (last year: £29 million) were incurred, arising as a result
of the Burberry Forward transformation programme initiated during the prior year and expected to conclude in FY 2026/27. 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 £11 million (last 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.
7. Auditor remuneration
Fees incurred during the year in relation to audit and non-audit services are analysed below:
Audit services in respect of the financial statements of the Company and consolidation
0.5
0.5
Audit services in respect of the financial statements of subsidiary companies
3.2
3.0
Audit-related assurance services
0.3
0.2
Other non-audit-related services
0.1
0.3
Total
4.1
4.0
8. Financing
Finance income – amortised cost
7
12
Finance income – fair value through profit and loss
16
13
Finance income
23
25
Finance expense on lease liabilities
21
(47)
(49)
Finance expense on overdrafts
(2)
(7)
Interest expense on borrowings
(33)
(25)
Other finance expense
(5)
(5)
Bank charges
(2)
(2)
Finance expense
(89)
(88)
Net finance expense
(66)
(63)
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 211
4. Net operating expenses
Note
52 weeks to
28 March
2026
£m
52 weeks to
29 March
2025
£m
Other operating income
(11)
(23)
Selling and distribution costs
1,127
1,172
Administrative expenses
367
363
1,483
1,512
Adjusting operating expenses
6
45
29
45
29
Net operating expenses
1,528
1,541
5. Profit before taxation
Note
52 weeks to
28 March
2026
£m
52 weeks to
29 March
2025
£m
Profit before taxation is stated after charging/(crediting):
Depreciation of property, plant and equipment
Within cost of sales
2
2
Within selling and distribution costs
91
93
Within administrative expenses
18
17
Depreciation of right-of-use assets
Within cost of sales
1
1
Within selling and distribution costs
1
207
225
Within administrative expenses
12
21
Amortisation of intangible assets
Within selling and distribution costs
–
1
Within administrative expenses
44
53
Net movement in inventory provisions within cost of sales
17
10
44
Gain on modification of right-of-use assets
(1)
(15)
Loss on disposal of property, plant and equipment
1
–
Net impairment charge of property, plant and equipment
13
3
10
Net impairment charge of right-of-use assets
2
14
7
32
Impairment charge of intangible assets
12
4
4
Employee costs
3
27
587
576
Other lease expense
Property lease variable lease expense
21
99
92
Property lease in holdover expense
21
12
8
Non-property short-term lease expense
21
6
9
Net exchange (gain)/loss on revaluation of monetary assets and liabilities
(10)
16
Net gain on derivatives – fair value through profit and loss
–
(21)
Receivables impairment charge
7
2
1. For the 52 weeks to 29 March 2025, depreciation of right-of-use assets was presented including a charge of £1 million arising as a result of the Group’s restructuring programme,
which was presented as an adjusting item (refer to note 6).
2. For the 52 weeks to 29 March 2025, impairment charge of right-of-use assets was presented including £1 million in relation to non-retail right-of-use assets arising as a result
of the Group’s restructuring programme, which was presented as an adjusting item (refer to note 6).
3. Employee costs for the 52 weeks to 28 March 2026 are presented including a charge of £33 million arising as a result of the Group’s restructuring programme (last year:
£16 million), which is presented as an adjusting item (refer to note 6).
Burberry Annual Report 2025/26 211

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 213
9. Taxation
Analysis of charge for the year recognised in the Group Income Statement:
Current tax
UK corporation tax
Current tax on income for the 52 weeks to 28 March 2026 at 25% (last year: 25%)
(1)
4
Double taxation relief
–
–
Adjustments in respect of prior years
1
1
(7)
–
(3)
Foreign tax
Current tax on income for the year
22
26
Adjustments in respect of prior years
1
16
15
38
41
Total current tax
38
38
Deferred tax
UK deferred tax
Origination and reversal of temporary differences
(43)
(2)
Adjustments in respect of prior years
1
(3)
2
(46)
–
Foreign deferred tax
Origination and reversal of temporary differences
35
(31)
Adjustments in respect of prior years
1
2
2
37
(29)
Total deferred tax
(9)
(29)
Total tax charge on profit
29
9
1. Adjustments in respect of prior years relate mainly to adjustments to estimates of prior period tax liabilities, outcomes of historical tax audits and tax accruals.
Analysis of charge for the year recognised in other comprehensive income and directly in equity:
Current tax
Recognised in other comprehensive income:
Current tax credit on exchange differences on loans (foreign currency translation reserve)
–
–
Total current tax recognised in other comprehensive income
–
–
Deferred tax
Recognised in equity:
Deferred tax charge on share options (retained earnings)
(1)
–
Total deferred tax recognised directly in equity
(1)
–
Burberry Annual Report 2025/26212

Financial Statements | Notes to the Financial Statements
214 Burberry Annual Report 25/26
9. Taxation continued
The tax rate applicable on profit varied from the standard rate of corporation tax in the UK due to the following factors:
Profit/(loss) before taxation
49
(66)
Tax at 25% (last year: 25%) on profit before taxation
12
(16)
Rate adjustments relating to overseas profits
1
(1)
Permanent differences
3
8
Tax on dividends not creditable
2
–
Share schemes
(2)
–
Current year tax losses not recognised
–
6
Prior year temporary differences and tax losses recognised
(2)
–
Adjustments in respect of prior years
15
12
Total taxation charge
29
9
Total taxation recognised in the Group Income Statement arises on the following items:
Tax on adjusted profit/(loss) before taxation
40
16
Tax on adjusting items
6
(11)
(7)
Total taxation charge
29
9
Factors affecting future tax charges
Uncertain tax positions
The Group operates in numerous tax jurisdictions around the world and is subject to factors that may affect future tax charges including
transfer pricing, tax rate changes, tax legislation changes, tax authority interpretation, expiry of statutes of limitation, tax litigation, and
resolution of tax audits and disputes.
At any given time, the Group has open years outstanding in various countries and is involved in tax audits and disputes, some of which
may take several years to resolve. Provisions are based on best estimates and management’s judgements concerning the likely ultimate
outcome of any audit or dispute. Management considers the specific circumstances of each tax position and takes external advice, where
appropriate, to assess the range of potential outcomes and estimate additional tax that may be due.
At 28 March 2026 the Group recognised provisions of £76 million in respect of uncertain tax positions (last year: £107 million),
being provisions of £87 million net of expected reimbursements of £11 million (last year: £128 million net of expected reimbursements
of £21 million). The majority of these provisions relate to the tax impact of intra-group transactions between the UK and the various
jurisdictions in which the Group operates, as would be expected for a group operating internationally.
The Group believes that it has made adequate provision in respect of additional tax liabilities that may arise from open years, tax audits
and disputes. However, the actual liability for any particular issue may be higher or lower than the amount provided, resulting in a negative
or positive effect on the tax charge in any given year. A reduction in the tax charge may also arise for other reasons such as an expiry
of the relevant statute of limitations. Depending on the final outcome of tax audits which are currently in progress, statute of limitations
expiry, and other factors, an impact on the tax charge could arise. The tax impact of intra-group transactions is a complex area and
resolution of matters can take many years. Given the inherent uncertainty, it is difficult to predict the timing of when these matters
will be resolved and the quantum of the ultimate resolution.
In the 52 weeks to 28 March 2026, uncertain positions on the majority of material audits have been agreed in principle with tax authorities
in line with the provided position, as such, the level of uncertainty in this area is significantly reduced. The majority of exposures relate
to transfer pricing and double taxation of cross border payments between the UK and other territories, in respect of which the Group
intends to apply for relief via Mutual Agreement Procedures. These processes are complex and can take several years to resolve, and
on this basis, the Group does not recognise the value of potential credits for double tax relief in full until outcomes are more certain.
Legislative changes
The OECD Pillar Two GloBE Rules introduce a global minimum corporate tax rate of 15% applicable to multinational enterprise groups
with global revenue over €750 million. All participating OECD members are required to incorporate these rules into national legislation.
The Group is subject to the Pillar Two Model Rules from FY 2024/25 onwards but does not meet the threshold for application of the Pillar
One transfer pricing rules. The Group applies the temporary exception from the accounting requirements for deferred taxes in IAS 12.
Accordingly, the Group neither recognises nor discloses information about deferred tax assets and liabilities related to Pillar
Two income taxes.
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 213
9. Taxation
Analysis of charge for the year recognised in the Group Income Statement:
52 weeks to
28 March
2026
£m
52 weeks to
29 March
2025
£m
Current tax
UK corporation tax
Current tax on income for the 52 weeks to 28 March 2026 at 25% (last year: 25%)
(1)
4
Double taxation relief
–
–
Adjustments in respect of prior years
1
1
(7)
–
(3)
Foreign tax
Current tax on income for the year
22
26
Adjustments in respect of prior years
1
16
15
38
41
Total current tax
38
38
Deferred tax
UK deferred tax
Origination and reversal of temporary differences
(43)
(2)
Adjustments in respect of prior years
1
(3)
2
(46)
–
Foreign deferred tax
Origination and reversal of temporary differences
35
(31)
Adjustments in respect of prior years
1
2
2
37
(29)
Total deferred tax
(9)
(29)
Total tax charge on profit
29
9
1. Adjustments in respect of prior years relate mainly to adjustments to estimates of prior period tax liabilities, outcomes of historical tax audits and tax accruals.
Analysis of charge for the year recognised in other comprehensive income and directly in equity:
52 weeks to
28 March
2026
£m
52 weeks to
29 March
2025
£m
Current tax
Recognised in other comprehensive income:
Current tax credit on exchange differences on loans (foreign currency translation reserve)
–
–
Total current tax recognised in other comprehensive income
–
–
Deferred tax
Recognised in equity:
Deferred tax charge on share options (retained earnings)
(1)
–
Total deferred tax recognised directly in equity
(1)
–
Burberry Annual Report 2025/26 213

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 215
9. Taxation continued
Factors affecting future tax charges continued
Legislative changes continued
UK legislation in relation to Pillar Two was substantively enacted on 20 June 2023 and applies to the Group for the reporting period
beginning 31 March 2024. The Group has performed an analysis of the potential exposure to Pillar Two income taxes. The analysis of
the potential exposure to Pillar Two income taxes is based on the most recently submitted Country by Country Reporting available for
the constituent entities in the Group (for the 52 weeks to 29 March 2025). Based on the analysis, the transitional safe harbour relief should
apply in respect of most jurisdictions in which the Group operates. Although there are a number of jurisdictions where the transitional
safe harbour relief may not apply, the Group does not expect a material exposure to Pillar Two income taxes in those jurisdictions.
10. Earnings per share
The calculation of basic earnings per share is based on profit or loss attributable to owners of the Company for the year divided by the
weighted average number of ordinary shares in issue during the year. Basic and diluted earnings per share based on adjusted profit
before taxation are also disclosed to indicate the underlying profitability of the Group.
Attributable profit/(loss) for the year before adjusting items
1
55
(53)
Effect of adjusting items (after taxation)
1
(34)
(22)
Attributable profit/(loss) for the year
21
(75)
1. Refer to note 6 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 year, excluding ordinary shares held in the Group’s ESOP trusts and treasury shares held by the Company
or its subsidiaries.
Diluted earnings per share is based on the weighted average number of ordinary shares in issue during the year. In addition, account
is taken of any options and awards made under the employee share incentive schemes, which will have a dilutive effect when exercised.
Refer to note 27 for additional information on the terms and conditions of the employee share incentive schemes.
Weighted average number of ordinary shares in issue during the year
358.3
357.5
Dilutive effect of the employee share incentive schemes
1
2.0
0.9
Diluted weighted average number of ordinary shares in issue during the year
1
360.3
358.4
Earnings/(loss) per share
Basic
5.9
(20.9)
Diluted
1
5.9
(20.9)
Adjusted earnings/(loss) per share
Basic
15.3
(14.8)
Diluted
1
15.2
(14.8)
1. For the 52 weeks to 29 March 2025, the effect of employee share incentive schemes is antidilutive and therefore not included in the calculation of diluted loss per share for the year.
11. Dividends paid to owners of the Company
Prior year final dividend paid £nil per share (last year: 42.7p)
–
152
Interim dividend paid £nil per share (last year: £nil)
–
–
Total
–
152
The Directors have elected not to declare an interim or final dividend in respect of the 52 weeks to 28 March 2026 (last year: £nil).
No dividends were paid during the 52 weeks to 28 March 2026 in relation to the 52 weeks to 29 March 2025. A dividend of 42. 7p per
share was paid during the 52 weeks to 29 March 2025 in relation to the 52 weeks to 30 March 2024.
Burberry Annual Report 2025/26214

Financial Statements | Notes to the Financial Statements
216 Burberry Annual Report 25/26
12. Intangible assets
As at 30 March 2024
125
16
279
61
481
Effect of foreign exchange rate changes
(5)
–
(1)
–
(6)
Additions
–
–
2
22
24
Disposals
–
(1)
(28)
–
(29)
Reclassifications from assets in the course of construction
–
–
61
(61)
–
As at 29 March 2025
120
15
313
22
470
Effect of foreign exchange rate changes
1
–
–
–
1
Additions
–
–
4
28
32
Disposals
–
–
(18)
–
(18)
Reclassifications from assets in the course of construction
–
–
21
(21)
–
As at 28 March 2026
121
15
320
29
485
As at 30 March 2024
6
9
199
–
214
Effect of foreign exchange rate changes
–
–
(2)
–
(2)
Charge for the year
–
1
53
–
54
Disposals
–
(1)
(28)
–
(29)
Impairment charge on assets
–
–
4
–
4
As at 29 March 2025
6
9
226
–
241
Effect of foreign exchange rate changes
–
–
–
–
–
Charge for the year
–
1
43
–
44
Disposals
–
–
(18)
–
(18)
Impairment charge on assets
–
–
4
–
4
As at 28 March 2026
6
10
255
–
271
As at 28 March 2026
115
5
65
29
214
As at 29 March 2025
114
6
87
22
229
Impairment testing of goodwill
The carrying value of the goodwill allocated to cash generating units:
Mainland China
46
45
South Korea
21
22
Retail and Wholesale segment
1
35
34
Other
13
13
Total
115
1. Goodwill which arose on acquisitions of Burberry Manifattura S.R.L. and Burberry Tecnica S.R.L. has been allocated to the group of cash generating units which make up the Group’s
Retail and Wholesale operating segment cash generating unit. This reflects the lowest level at which the goodwill is being monitored by management.
The Group tests goodwill for impairment annually or when there is an indication that goodwill might be impaired. The recoverable amount
of all cash generating units has been determined on a value-in-use basis. Value-in-use calculations for each cash generating unit are
based on projected pre-tax discounted cash flows together with a discounted terminal value. The cash flows have been discounted
at pre-tax rates reflecting the Group’s weighted average cost of capital adjusted for country-specific tax rates and risks. Where the cash
generating unit has a non-controlling interest which was recognised at a value equal to its proportionate interest in the net identifiable
assets of the acquired subsidiary at the acquisition date, the carrying amount of the goodwill has been grossed up to include the goodwill
attributable to the non-controlling interest, for the purpose of impairment testing the goodwill attributable to the cash generating unit.
The key assumptions contained in the value-in-use calculations include the future revenues, the operating profit margins achieved and
the discount rates applied.
The value-in-use calculations have been prepared using management’s cost and revenue projections for the next three years to 31
March 2029 and a longer-term growth rate of 5% to 29 March 2031 (last year: 5% to 30 March 2030). A terminal value has been included
in the value-in-use calculation based on the cash flows for the year ending 29 March 2031, incorporating the assumption that growth
beyond 29 March 2031 is equivalent to nominal inflation rates, assumed to be 2% (last year: 2% beyond 30 March 2030), which are
not significant to the assessment.
The value-in-use estimates indicated that the recoverable amount of the cash generating unit exceeded the carrying value for each
of the cash generating units. As a result, no impairment has been recognised in respect of the carrying value of goodwill in the year.
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 215
9. Taxation continued
Factors affecting future tax charges continued
Legislative changes continued
UK legislation in relation to Pillar Two was substantively enacted on 20 June 2023 and applies to the Group for the reporting period
beginning 31 March 2024. The Group has performed an analysis of the potential exposure to Pillar Two income taxes. The analysis of
the potential exposure to Pillar Two income taxes is based on the most recently submitted Country by Country Reporting available for
the constituent entities in the Group (for the 52 weeks to 29 March 2025). Based on the analysis, the transitional safe harbour relief should
apply in respect of most jurisdictions in which the Group operates. Although there are a number of jurisdictions where the transitional
safe harbour relief may not apply, the Group does not expect a material exposure to Pillar Two income taxes in those jurisdictions.
10. Earnings per share
The calculation of basic earnings per share is based on profit or loss attributable to owners of the Company for the year divided by the
weighted average number of ordinary shares in issue during the year. Basic and diluted earnings per share based on adjusted profit
before taxation are also disclosed to indicate the underlying profitability of the Group.
52 weeks to
28 March
2026
£m
52 weeks to
29 March
2025
£m
Attributable profit/(loss) for the year before adjusting items
1
55
(53)
Effect of adjusting items (after taxation)
1
(34)
(22)
Attributable profit/(loss) for the year
21
(75)
1. Refer to note 6 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 year, excluding ordinary shares held in the Group’s ESOP trusts and treasury shares held by the Company
or its subsidiaries.
Diluted earnings per share is based on the weighted average number of ordinary shares in issue during the year. In addition, account
is taken of any options and awards made under the employee share incentive schemes, which will have a dilutive effect when exercised.
Refer to note 27 for additional information on the terms and conditions of the employee share incentive schemes.
52 weeks to
28 March
2026
Millions
52 weeks to
29 March
2025
Millions
Weighted average number of ordinary shares in issue during the year
358.3
357.5
Dilutive effect of the employee share incentive schemes
1
2.0
0.9
Diluted weighted average number of ordinary shares in issue during the year
1
360.3
358.4
52 weeks to
28 March
2026
Pence
52 weeks to
29 March
2025
Pence
Earnings/(loss) per share
Basic
5.9
(20.9)
Diluted
1
5.9
(20.9)
Adjusted earnings/(loss) per share
Basic
15.3
(14.8)
Diluted
1
15.2
(14.8)
1. For the 52 weeks to 29 March 2025, the effect of employee share incentive schemes is antidilutive and therefore not included in the calculation of diluted loss per share for the year.
11. Dividends paid to owners of the Company
52 weeks to
28 March
2026
£m
52 weeks to
30 March
2025
£m
Prior year final dividend paid £nil per share (last year: 42.7p)
–
152
Interim dividend paid £nil per share (last year: £nil)
–
–
Total
–
152
The Directors have elected not to declare an interim or final dividend in respect of the 52 weeks to 28 March 2026 (last year: £nil).
No dividends were paid during the 52 weeks to 28 March 2026 in relation to the 52 weeks to 29 March 2025. A dividend of 42.7p per
share was paid during the 52 weeks to 29 March 2025 in relation to the 52 weeks to 30 March 2024.
Burberry Annual Report 2025/26 215

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 217
12. Intangible assets continued
Impairment testing of goodwill continued
For the material goodwill balances of Mainland China, South Korea and the Retail and Wholesale segment, management has considered
the potential impact of reasonably possible changes in assumptions on the recoverable amount of goodwill. The sensitivities include
applying a 10% reduction in revenue and gross profit and the associated impact on operating profit margin from management’s base
cash flow projections, considering the macroeconomic and political uncertainty risk on the Group’s retail operations and on the global
economy. Under this scenario, the estimated recoverable amount of goodwill in Mainland China, South Korea and the Retail and
Wholesale segment still exceeded the carrying value.
The pre-tax discount rates for Mainland China, South Korea and the Retail and Wholesale segment were 12%, 12% and 12% respectively
(last year: Mainland China 12%, South Korea 11%, and the Retail and Wholesale segment 12%). No reasonably possible change in these
pre-tax discount rates would result in the carrying value exceeding the estimated recoverable amount of goodwill.
The other goodwill balance of £13 million (last year: £13 million) consists of amounts relating to eight cash generating units, none of which
have goodwill balances individually exceeding £6 million as at 28 March 2026 (last year: £6 million).
13. Property, plant and equipment
As at 30 March 2024
91
631
358
49
1,129
Effect of foreign exchange rate changes
(2)
(18)
(9)
(1)
(30)
Additions
2
86
15
20
123
Disposals
–
(36)
(23)
–
(59)
Reclassifications from assets in the course of construction
–
26
21
(47)
–
As at 29 March 2025
91
689
362
21
1,163
Effect of foreign exchange rate changes
(2)
(3)
(3)
–
(8)
Additions
1
31
13
30
75
Disposals
–
(49)
(29)
(1)
(79)
Reclassifications from assets in the course of construction
2
5
10
(17)
–
As at 28 March 2026
92
673
353
33
1,151
As at 30 March 2024
48
394
281
–
723
Effect of foreign exchange rate changes
(2)
(12)
(7)
–
(21)
Charge for the year
2
77
33
–
112
Disposals
–
(36)
(23)
–
(59)
Impairment charge on assets
–
8
2
–
10
As at 29 March 2025
48
431
286
–
765
Effect of foreign exchange rate changes
(1)
(1)
(3)
–
(5)
Charge for the year
2
74
35
–
111
Disposals
–
(49)
(29)
–
(78)
Impairment charge on assets
–
3
1
–
4
Impairment reversal on assets
–
(1)
–
–
(1)
As at 28 March 2026
49
457
290
–
796
As at 28 March 2026
43
216
63
33
355
As at 29 March 2025
43
258
76
21
398
Burberry Annual Report 2025/26216

Financial Statements | Notes to the Financial Statements
218 Burberry Annual Report 25/26
13. Property, plant and equipment continued
During the 52 weeks to 28 March 2026, management carried out a review of retail cash generating units comprising right-of-use asset
and property, plant and equipment, for any indication of impairment charges or reversals of impairments previously recorded. Where
indications of impairment charges or reversals were identified, the impairment review compared the value-in-use of the cash generating
units to their net book values at 28 March 2026. 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, reflecting their latest plans over the next
three years to 31 March 2029. For the remainder of the asset life, the cash flows assume industry growth rates of 5% (last year: 5%)
and cost inflation rates appropriate to each store’s location. The pre-tax discount rates used in these calculations were between 8.7%
and 13.6% (last year: between 10.5% and 12.8%) based on the Group’s weighted average cost of capital adjusted for country-specific
borrowing costs, tax rates and risks for those countries in which a charge was incurred. Where indicators of impairment have been
identified and the value-in-use was less than the carrying value of the cash generating unit, an impairment of property, plant and
equipment and right-of-use asset was recorded.
During the 52 weeks to 28 March 2026, a net charge of £10 million (last year: £42 million) was recorded within net operating expenses
as a result of the annual review of impairment for retail store assets related to trading impacts. The net charge consists of £3 million
(last year: £10 million) recorded against property, plant and equipment and £7 million (last year: £32 million) recorded against right-of-use
assets. Refer to note 14 for further details of right-of-use assets.
The net impairment charge recorded in property, plant and equipment related to 15 retail cash generating units (last year: 17 retail cash
generating units) for which the total recoverable amount at the balance sheet date is £12 million (last year: £17 million).
Management has considered the potential impact of changes in assumptions on the impairment recorded against the Group’s retail
assets. Given the macroeconomic and political uncertainty risk on the Group’s retail operations and on the global economy, 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/increase in revenue assumptions for the 52 weeks to 27 March 2027, with no change
to subsequent forecast revenue growth rate assumptions, would result in a £14 million increase/£9 million decrease in the impairment
charge of retail store assets in the 52 weeks to 28 March 2026 (last year: £11 million increase/£18 million decrease).
14. Right-of-use assets
As at 30 March 2024
1,013
–
1,013
Effect of foreign exchange rate changes
(17)
–
(17)
Additions
65
5
70
Remeasurements
80
–
80
Depreciation for the year
(244)
(3)
(247)
Impairment charge on right-of-use assets
(32)
–
(32)
As at 29 March 2025
865
2
867
Effect of foreign exchange rate changes
2
–
2
Additions
48
–
48
Remeasurements
58
–
58
Depreciation for the year
(218)
(2)
(220)
Impairment charge on right-of-use assets
(11)
–
(11)
Impairment reversal on right-of-use assets
4
–
4
As at 28 March 2026
748
–
748
As a result of the assessment of retail cash generating units for impairment, a net impairment charge of £7 million (last year: £31 million)
was recorded for impairment of right-of-use assets related to trading impacts. Refer to note 13 for further details of impairment
assessment of retail cash generating units.
The net impairment charge recorded in right-of-use assets relates to 15 retail cash generating units (last year: 18 retail cash generating
units) for which the total recoverable amount at the balance sheet date is £40 million (last year: £53 million).
In the 52 weeks to 29 March 2025, an impairment charge of £1 million was recognised in relation to non-retail right-of-use assets arising
as a result of the Group’s restructuring programme and was presented as an adjusting item (refer to note 6). As a result, the total
impairment charge for right-of-use assets in the 52 weeks to 29 March 2025 was £32 million.
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 217
12. Intangible assets continued
Impairment testing of goodwill continued
For the material goodwill balances of Mainland China, South Korea and the Retail and Wholesale segment, management has considered
the potential impact of reasonably possible changes in assumptions on the recoverable amount of goodwill. The sensitivities include
applying a 10% reduction in revenue and gross profit and the associated impact on operating profit margin from management’s base
cash flow projections, considering the macroeconomic and political uncertainty risk on the Group’s retail operations and on the global
economy. Under this scenario, the estimated recoverable amount of goodwill in Mainland China, South Korea and the Retail and
Wholesale segment still exceeded the carrying value.
The pre-tax discount rates for Mainland China, South Korea and the Retail and Wholesale segment were 12%, 12% and 12% respectively
(last year: Mainland China 12%, South Korea 11%, and the Retail and Wholesale segment 12%). No reasonably possible change in these
pre-tax discount rates would result in the carrying value exceeding the estimated recoverable amount of goodwill.
The other goodwill balance of £13 million (last year: £13 million) consists of amounts relating to eight cash generating units, none of which
have goodwill balances individually exceeding £6 million as at 28 March 2026 (last year: £6 million).
13. Property, plant and equipment
Cost
Freehold land
and buildings
£m
Leasehold
improvements
£m
Fixtures,
fittings and
equipment
£m
Assets in the
course of
construction
£m
Total
£m
As at 30 March 2024
91
631
358
49
1,129
Effect of foreign exchange rate changes
(2)
(18)
(9)
(1)
(30)
Additions
2
86
15
20
123
Disposals
–
(36)
(23)
–
(59)
Reclassifications from assets in the course of construction
–
26
21
(47)
–
As at 29 March 2025
91
689
362
21
1,163
Effect of foreign exchange rate changes
(2)
(3)
(3)
–
(8)
Additions
1
31
13
30
75
Disposals
–
(49)
(29)
(1)
(79)
Reclassifications from assets in the course of construction
2
5
10
(17)
–
As at 28 March 2026
92
673
353
33
1,151
Accumulated depreciation and impairment
As at 30 March 2024
48
394
281
–
723
Effect of foreign exchange rate changes
(2)
(12)
(7)
–
(21)
Charge for the year
2
77
33
–
112
Disposals
–
(36)
(23)
–
(59)
Impairment charge on assets
–
8
2
–
10
As at 29 March 2025
48
431
286
–
765
Effect of foreign exchange rate changes
(1)
(1)
(3)
–
(5)
Charge for the year
2
74
35
–
111
Disposals
–
(49)
(29)
–
(78)
Impairment charge on assets
–
3
1
–
4
Impairment reversal on assets
–
(1)
–
–
(1)
As at 28 March 2026
49
457
290
–
796
Net book value
As at 28 March 2026
43
216
63
33
355
As at 29 March 2025
43
258
76
21
398
Burberry Annual Report 2025/26 217

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 219
15. Deferred taxation
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax
liabilities and there is an intention to settle on a net basis, and to the same fiscal authority. The assets and liabilities presented in the
Balance Sheet, after offset, are shown in the table below:
Deferred tax assets
245
233
Deferred tax liabilities
–
(1)
Net amount
245
232
The movement in the deferred tax account is as follows:
At start of year
232
207
Effect of foreign exchange rate changes
3
(4)
Credited to the Income Statement
9
29
Charged to equity
1
–
At end of year
245
232
The movement in the net deferred tax balances during the year is as follows:
Other
1
As at 30 March 2024
2
124
3
29
35
14
207
Effect of foreign exchange rate changes
–
2
–
(6)
–
–
(4)
Credited/(charged) to the Income Statement
5
(15)
–
42
4
(7)
29
As at 29 March 2025
7
111
3
65
39
7
232
Effect of foreign exchange rate changes
–
–
–
2
–
1
3
Credited/(charged) to the Income Statement
2
(26)
3
20
(4)
14
9
Credited to equity
–
–
1
–
–
–
1
As at 28 March 2026
9
85
7
87
35
22
245
1. Deferred balances within Other relate largely to temporary differences arising on other provisions and accruals.
Deferred tax assets are recognised for tax losses carried forward to the extent that the realisation of the related benefit through future
taxable profits is probable. The Group did not recognise deferred tax assets of £52 million (last year: £50 million) in respect of losses
and temporary timing differences amounting to £219 million (last year: £210 million) that can be set off against future taxable income.
There is a time limit for the recovery of £4 million of these potential assets (last year: £3 million) which ranges from one to 10 years
(last year: one to 10 years).
The Group has recognised a deferred tax asset of £73 million (last year: £92 million) (not including profit in stock consolidation
adjustments) in Mainland China, of which £47 million (last year: £60 million) has arisen due to losses in FY 2022/2023, FY 2023/2024
and FY 2024/2025. Group financial forecasts indicate that the subsidiary in Mainland China is expected to generate future taxable profits
which will enable the deferred tax asset to be utilised in full.
The Group has recognised a deferred tax asset of £37 million in relation to losses arising in the UK. Group financial forecasts indicate
the subsidiary in the UK is expected to generate future taxable profits which will enable the deferred tax asset to be utilised in full.
For jurisdictions where tax deductions do not follow IFRS 16 accounting, the Group recognises a deferred tax asset on the lease liability
and a separate deferred tax liability on the right-of-use asset. The Group applies jurisdictional netting and the net position is included
in the “Leases” column above.
Included within other temporary differences above is a deferred tax liability of £nil (last year: £1 million) relating to unremitted overseas
earnings. No deferred tax liability is provided in respect of any future remittance of earnings of foreign subsidiaries where the Group
is able to control the remittance of earnings and it is probable that such earnings will not be remitted in the foreseeable future, or where
no liability would arise on the remittance. The aggregate amount of unremitted earnings in respect of which no deferred tax liability has
been provided is £160 million (last year: £126 million).
Burberry Annual Report 2025/26218

Financial Statements | Notes to the Financial Statements
220 Burberry Annual Report 25/26
16. Trade and other receivables
Non-current
Other financial receivables
1
44
43
Prepayments
4
5
Total non-current trade and other receivables
48
48
Current
Trade receivables
151
141
Provision for expected credit losses
(18)
(11)
Net trade receivables
133
130
Other financial receivables
1
24
32
Other non-financial receivables
2
108
104
Prepayments
43
28
Accrued income
15
15
Total current trade and other receivables
323
309
Total trade and other receivables
371
357
1. Other financial receivables relates to rental deposits and other sundry debtors.
2. Other non-financial receivables relates to indirect taxes and other taxes and duties.
Included in total trade and other receivables are non-financial assets of £155 million (last year: £137 million).
The Group’s impairment policies and the calculation of any allowances for credit losses are detailed in note 26 in the credit risk section.
17. Inventories
Raw materials
28
26
Work in progress
2
1
Finished goods
371
397
Total inventories
401
424
Total inventories, gross
468
527
Provisions
(67)
(103)
Total inventories, net
401
424
Inventory provisions of £67 million (last year: £103 million) are recorded, representing 14.3% (last 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.
The cost of inventories recognised as an expense and included in cost of sales amounted to £742 million (last year: £887 million).
Taking into account factors impacting the inventory provisioning including the proportion of inventory sold through loss making channels
being higher or lower than expected, management considers that a reasonable potential range of outcomes could result in an increase
in inventory provisions of £11 million or a decrease in inventory provisions of £13 million in the next 12 months. This would result
in a potential range of inventory provisions of 12% to 17% as a percentage of the gross value of inventory as at 28 March 2026.
The net movement in inventory provisions included in cost of sales for the 52 weeks to 28 March 2026 was a charge of £10 million
(last year: £44 million). The total reversal of inventory provisions during the current year, which is included in the net movement,
was £9 million (last year: £8 million).
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 219
15. Deferred taxation
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax
liabilities and there is an intention to settle on a net basis, and to the same fiscal authority. The assets and liabilities presented in the
Balance Sheet, after offset, are shown in the table below:
As at
28 March
2026
£m
As at
29 March
2025
£m
Deferred tax assets
245
233
Deferred tax liabilities
–
(1)
Net amount
245
232
The movement in the deferred tax account is as follows:
52 weeks to
28 March
2026
£m
52 weeks to
29 March
2025
£m
At start of year
232
207
Effect of foreign exchange rate changes
3
(4)
Credited to the Income Statement
9
29
Charged to equity
1
–
At end of year
245
232
The movement in the net deferred tax balances during the year is as follows:
Capital
allowances
£m
Unrealised
inventory profit
and other
inventory
provisions
£m
Share
schemes
£m
Unused tax
losses
£m
Leases
£m
Other
1
£m
Total
£m
As at 30 March 2024
2
124
3
29
35
14
207
Effect of foreign exchange rate changes
–
2
–
(6)
–
–
(4)
Credited/(charged) to the Income Statement
5
(15)
–
42
4
(7)
29
As at 29 March 2025
7
111
3
65
39
7
232
Effect of foreign exchange rate changes
–
–
–
2
–
1
3
Credited/(charged) to the Income Statement
2
(26)
3
20
(4)
14
9
Credited to equity
–
–
1
–
–
–
1
As at 28 March 2026
9
85
7
87
35
22
245
1. Deferred balances within Other relate largely to temporary differences arising on other provisions and accruals.
Deferred tax assets are recognised for tax losses carried forward to the extent that the realisation of the related benefit through future
taxable profits is probable. The Group did not recognise deferred tax assets of £52 million (last year: £50 million) in respect of losses
and temporary timing differences amounting to £219 million (last year: £210 million) that can be set off against future taxable income.
There is a time limit for the recovery of £4 million of these potential assets (last year: £3 million) which ranges from one to 10 years
(last year: one to 10 years).
The Group has recognised a deferred tax asset of £73 million (last year: £92 million) (not including profit in stock consolidation
adjustments) in Mainland China, of which £47 million (last year: £60 million) has arisen due to losses in FY 2022/2023, FY 2023/2024
and FY 2024/2025. Group financial forecasts indicate that the subsidiary in Mainland China is expected to generate future taxable profits
which will enable the deferred tax asset to be utilised in full.
The Group has recognised a deferred tax asset of £37 million in relation to losses arising in the UK. Group financial forecasts indicate
the subsidiary in the UK is expected to generate future taxable profits which will enable the deferred tax asset to be utilised in full.
For jurisdictions where tax deductions do not follow IFRS 16 accounting, the Group recognises a deferred tax asset on the lease liability
and a separate deferred tax liability on the right-of-use asset. The Group applies jurisdictional netting and the net position is included
in the “Leases” column above.
Included within other temporary differences above is a deferred tax liability of £nil (last year: £1 million) relating to unremitted overseas
earnings. No deferred tax liability is provided in respect of any future remittance of earnings of foreign subsidiaries where the Group
is able to control the remittance of earnings and it is probable that such earnings will not be remitted in the foreseeable future, or where
no liability would arise on the remittance. The aggregate amount of unremitted earnings in respect of which no deferred tax liability has
been provided is £160 million (last year: £126 million).
Burberry Annual Report 2025/26 219

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 221
18. Derivative financial instruments
Master netting arrangements
The Group’s derivative contracts are entered into under International Swaps and Derivatives Association (ISDA) master netting
arrangements. In general, under such agreements the amounts owed by each counterparty on a single day in respect of all transactions
outstanding in the same currency are aggregated into a single amount that is payable by one party to the other. In certain circumstances,
such as when a default occurs, all outstanding transactions under the agreement are terminated, the termination value is assessed
and only a single net amount is payable in settlement of all transactions. The ISDA agreements do not meet the criteria for offsetting
in the Balance Sheet as the Group’s right to offset is enforceable only on the occurrence of future events such as default. The Group has
amended the ISDA agreement with two banks to require it to net settle its forward foreign exchange contracts. The effect of netting the
derivatives subject to net settlement agreements and offset on the Balance Sheet at 28 March 2026 was £nil (last year: £nil). The Group’s
Balance Sheet would not be materially different if it had offset its forward foreign exchange contracts, interest rate swaps and equity
swap contracts subject to the standard ISDA agreements.
Derivative financial assets and liabilities
The fair value and notional amounts of derivatives analysed by hedge type are as follows:
As at 28 March 2026
As at 29 March 2025
Asset
Liability
Asset
Forward foreign exchange contracts
– cash flow hedges
–
–
–
34
–
45
(1)
110
Forward foreign exchange contracts
– fair value through profit and loss
1
3
293
(8)
512
10
473
–
52
Equity swap contracts – fair value through
profit and loss
–
–
(1)
4
1
2
–
–
Interest rate swaps – fair value hedging
instrument
2
–
–
(6)
450
–
–
(3)
450
Total position
3
293
(15)
1,000
11
520
(4)
612
Comprising:
Total current position
3
293
(10)
550
11
520
(1)
162
Total non-current position
–
–
(5)
450
–
–
(3)
450
1. Forward foreign exchange contracts classified as fair value through profit and loss are used for cash management and hedging monetary assets and liabilities. At 28 March 2026,
all such contracts had maturities of no greater than 4 months from the balance sheet date (last year: no greater than 10 months from the balance sheet date).
2. 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 £450 million medium term note (MTN) Fixed rate bond.
Effect of hedge accounting on the financial position and performance
The impact of the hedging instruments on the Group’s financial position and performance is as follows:
£m
Maturity date
Foreign currency forwards (assets)
–
–
–
–
Foreign currency forwards (liabilities)
–
34
May 2026 – Aug 2026
–
Interest rate swaps (assets)
–
–
–
–
Interest rate swaps (liabilities)
(6)
450
Jun 2030
(4)
£m
Maturity date
Foreign currency forwards (assets)
–
45
Jun 2025 – Jan 2026
–
Foreign currency forwards (liabilities)
(1)
110
Jun 2025 – Oct 2025
1
Interest rate swaps (assets)
–
–
–
–
Interest rate swaps (liabilities)
(3)
450
Jun 2030
(3)
Burberry Annual Report 2025/26220

Financial Statements | Notes to the Financial Statements
222 Burberry Annual Report 25/26
18. Derivative financial instruments continued
The impact of the fair value hedged item on the Balance Sheet is as follows:
As at 28 March 2026
As at 29 March 2025
5.75% £450m MTN Fixed rate bond
436
5
(6)
438
(2)
(1)
The change in value of the cash flow hedges used to determine hedge ineffectiveness as at 28 March 2026 is £nil (last year: £1 million).
The foreign currency forwards are denominated in the same currency as the highly probable future inventory purchases (EUR),
therefore the hedge ratio is 1:1. The weighted average hedged rate of outstanding contracts (including forward points) in EUR was
1.1310 (last year: 1.1893).
The terms of the interest rate swap contracts match the terms of the borrowings including notional amounts and maturity, interest
settlement and interest rate reset dates, therefore the Group has established a hedge ratio of 1:1 for the hedging relationships
as the underlying risk of the derivative contract is identical to that of the hedged item.
The contractual maturity profile of non-current financial liabilities is shown in note 26. For further details of cash flow hedging,
refer to note 26 in the market risk section.
19. Cash and cash equivalents
Cash and cash equivalents held at amortised cost
Cash at bank and in hand and cash in transit
153
174
Short-term deposits
134
132
287
306
Cash and cash equivalents held at fair value through profit and loss
Short-term deposits
384
507
Total
671
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.
As at 28 March 2026 and 29 March 2025, no impairment losses were identified on cash and cash equivalents held at amortised cost.
As at 28 March 2026, cash in transit is £18 million (last year: £20 million).
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 221
18. Derivative financial instruments
Master netting arrangements
The Group’s derivative contracts are entered into under International Swaps and Derivatives Association (ISDA) master netting
arrangements. In general, under such agreements the amounts owed by each counterparty on a single day in respect of all transactions
outstanding in the same currency are aggregated into a single amount that is payable by one party to the other. In certain circumstances,
such as when a default occurs, all outstanding transactions under the agreement are terminated, the termination value is assessed
and only a single net amount is payable in settlement of all transactions. The ISDA agreements do not meet the criteria for offsetting
in the Balance Sheet as the Group’s right to offset is enforceable only on the occurrence of future events such as default. The Group has
amended the ISDA agreement with two banks to require it to net settle its forward foreign exchange contracts. The effect of netting the
derivatives subject to net settlement agreements and offset on the Balance Sheet at 28 March 2026 was £nil (last year: £nil). The Group’s
Balance Sheet would not be materially different if it had offset its forward foreign exchange contracts, interest rate swaps and equity
swap contracts subject to the standard ISDA agreements.
Derivative financial assets and liabilities
The fair value and notional amounts of derivatives analysed by hedge type are as follows:
As at 28 March 2026
As at 29 March 2025
Asset
Liability
Asset
Liability
Fair value
£m
Notional
value
£m
Fair value
£m
Notional
value
£m
Fair value
£m
Notional
value
£m
Fair value
£m
Notional
value
£m
Forward foreign exchange contracts
– cash flow hedges
–
–
–
34
–
45
(1)
110
Forward foreign exchange contracts
– fair value through profit and loss
1
3
293
(8)
512
10
473
–
52
Equity swap contracts – fair value through
profit and loss
–
–
(1)
4
1
2
–
–
Interest rate swaps – fair value hedging
instrument
2
–
–
(6)
450
–
–
(3)
450
Total position
3
293
(15)
1,000
11
520
(4)
612
Comprising:
Total current position
3
293
(10)
550
11
520
(1)
162
Total non-current position
–
–
(5)
450
–
–
(3)
450
1. Forward foreign exchange contracts classified as fair value through profit and loss are used for cash management and hedging monetary assets and liabilities. At 28 March 2026,
all such contracts had maturities of no greater than 4 months from the balance sheet date (last year: no greater than 10 months from the balance sheet date).
2. 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 £450 million medium term note (MTN) Fixed rate bond.
Effect of hedge accounting on the financial position and performance
The impact of the hedging instruments on the Group’s financial position and performance is as follows:
As at 28 March 2026
Carrying amount
£m
Notional amount
£m
Maturity date
Change in fair value
used for measuring
ineffectiveness for
the period
£m
Foreign currency forwards (assets)
–
–
–
–
Foreign currency forwards (liabilities)
–
34
May 2026 – Aug 2026
–
Interest rate swaps (assets)
–
–
–
–
Interest rate swaps (liabilities)
(6)
450
Jun 2030
(4)
As at 29 March 2025
Carrying amount
£m
Notional amount
£m
Maturity date
Change in fair value
used for measuring
ineffectiveness for
the period
£m
Foreign currency forwards (assets)
–
45
Jun 2025 – Jan 2026
–
Foreign currency forwards (liabilities)
(1)
110
Jun 2025 – Oct 2025
1
Interest rate swaps (assets)
–
–
–
–
Interest rate swaps (liabilities)
(3)
450
Jun 2030
(3)
Burberry Annual Report 2025/26 221

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 223
20. Trade and other payables
Non-current
Other payables
1
3
3
Deferred income and non-financial accruals
7
8
Contract liabilities
38
43
Total non-current trade and other payables
48
54
Current
Trade payables
164
146
Other taxes and social security costs
61
46
Other payables
1
44
31
Accruals
172
160
Deferred income and non-financial accruals
7
8
Contract liabilities
11
11
Deferred consideration
2
3
3
Total current trade and other payables
462
405
Total trade and other payables
510
459
1. Other payables primarily relates to interest.
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. In the 52 weeks to 28 March
2026, no payments were made in relation to Burberry Middle East LLC (last year: £2 million). Contingent payments of £3 million remain outstanding at 28 March 2026 (last year:
£3 million), which will be paid once all required documentation is complete.
Included in total trade and other payables are non-financial liabilities of £124 million (last year: £116 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. 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.
Retail contract liabilities
5
4
Licensing contract liabilities
44
50
Total contract liabilities
49
54
The amount of revenue recognised in the year relating to contract liabilities at the start of the year is set out in the following table.
All revenue in the year relates to performance obligations satisfied in the year. All contract liabilities at the end of the year relate
to unsatisfied performance obligations.
Retail revenue relating to contract liabilities
2
2
Deferred revenue from Beauty licence
6
7
Revenue recognised that was included in contract liabilities at the start of the year
8
9
Burberry Annual Report 2025/26222

Financial Statements | Notes to the Financial Statements
224 Burberry Annual Report 25/26
21. Lease liabilities
Balance as at 30 March 2024
1,188
–
1,188
Effect of foreign exchange rate changes
(18)
–
(18)
Created during the year
65
5
70
Amounts paid
1
(283)
(3)
(286)
Discount unwind
49
–
49
Remeasurements
2
78
–
78
Balance as at 29 March 2025
1,079
2
1,081
Effect of foreign exchange rate changes
(1)
–
(1)
Created during the year
47
–
47
Amounts paid
1
(274)
(2)
(276)
Discount unwind
47
–
47
Remeasurements
2
57
–
57
Balance as at 28 March 2026
955
–
955
Analysis of total lease liabilities:
Non-current
751
866
Current
204
215
Total
955
1,081
1. The amount paid of £276 million (last year: £286 million) includes £229 million (last year: £237 million) representing a financing cash outflow and £47 million (last year: £49 million)
representing an operating cash outflow. For the 52 weeks to 29 March 2025, the financing cash outflow included £5 million paid on termination of lease.
2. Remeasurements relate largely to changes in the lease liabilities that arise as a result of extending the lease term on an existing lease and management’s reassessment of the lease
term based on existing break or extension options in the contract, as well as those linked to an inflation index or rate review.
The Group enters into property leases for retail properties, including stores, concessions, warehouse and storage locations and office
property. The remaining lease terms for these properties range from a few months to 17 years (last year: a few months to 15 years).
Many of the leases include break options and/or extension options to provide operational flexibility. Some of the leases for concessions
have rolling lease terms or rolling break options. Management assess the lease term at inception based on the facts and circumstances
applicable to each property including the period over which the investment appraisal was initially considered.
Potential future undiscounted lease payments related to periods following the exercise date of an extension option not included in the
lease term, and therefore not included in lease liabilities, are approximately £360 million (last year: £360 million) in relation to the next
available extension option, and are assessed as not reasonably certain to be exercised. Potential future undiscounted lease payments
related to periods following the exercise date of a break option not included in the lease term, and therefore not included in lease
liabilities, are approximately £68 million (last year: £73 million) in relation to break options which are expected to be exercised. During
the 52 weeks to 28 March 2026, no significant judgements regarding extension or break options in relation to individually material leases
were made (last year: no significant judgements).
Management reviews the retail lease portfolio on an ongoing basis, taking into account retail performance and future trading
expectations. Management may exercise extension options and negotiate lease extensions or modifications. In other instances,
management may exercise break options, negotiate lease reductions or decide not to negotiate a lease extension at the end of the
lease term. The most significant factor impacting future lease payments is changes management choose to make to the store portfolio.
Future increases and decreases in rent linked to an inflation index or rate review are not included in the lease liability until the change
in cash flows is legally agreed. Approximately 21% (last year: 20%) of the Group’s lease liabilities are subject to inflation linked reviews
and 21% (last year: 31%) are subject to rent reviews. Rental changes linked to inflation or rent reviews typically occur on an annual basis.
Many of the retail property leases also incur payments based on a percentage of revenue achieved at the location. Changes in future
variable lease payments will typically reflect changes in the Group’s retail revenues, including the impact of regional mix. The Group
expects the relative proportions of fixed and variable lease payments to remain broadly consistent in future years.
The Group also enters into non-property leases for equipment, advertising fixtures and machinery. Generally, these leases do not include
break or extension options. The most significant impact to future cash flows relating to leased equipment, which are primarily short-term
leases, would be the Group’s usage of leased equipment to a greater or lesser extent.
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 223
20. Trade and other payables
As at
28 March
2026
£m
As at
29 March
2025
£m
Non-current
Other payables
1
3
3
Deferred income and non-financial accruals
7
8
Contract liabilities
38
43
Total non-current trade and other payables
48
54
Current
Trade payables
164
146
Other taxes and social security costs
61
46
Other payables
1
44
31
Accruals
172
160
Deferred income and non-financial accruals
7
8
Contract liabilities
11
11
Deferred consideration
2
3
3
Total current trade and other payables
462
405
Total trade and other payables
510
459
1. Other payables primarily relates to interest.
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. In the 52 weeks to 28 March
2026, no payments were made in relation to Burberry Middle East LLC (last year: £2 million). Contingent payments of £3 million remain outstanding at 28 March 2026 (last year:
£3 million), which will be paid once all required documentation is complete.
Included in total trade and other payables are non-financial liabilities of £124 million (last year: £116 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. 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
28 March
2026
£m
As at
29 March
2025
£m
Retail contract liabilities
5
4
Licensing contract liabilities
44
50
Total contract liabilities
49
54
The amount of revenue recognised in the year relating to contract liabilities at the start of the year is set out in the following table.
All revenue in the year relates to performance obligations satisfied in the year. All contract liabilities at the end of the year relate
to unsatisfied performance obligations.
52 weeks to
28 March
2026
£m
52 weeks to
29 March
2025
£m
Retail revenue relating to contract liabilities
2
2
Deferred revenue from Beauty licence
6
7
Revenue recognised that was included in contract liabilities at the start of the year
8
9
Burberry Annual Report 2025/26 223

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 225
21. Lease liabilities continued
The Group’s accounting policy for leases is set out in note 2. Details of Income Statement charges and income from leases are set out
in note 5. The right-of-use asset categories on which depreciation is incurred are presented in note 14. Interest expense incurred on lease
liabilities is presented in note 8. Commitments relating to off-balance sheet leases are presented in note 25. The maturity of undiscounted
future lease liabilities are set out in note 26.
Total cash outflows in relation to leases in the 52 weeks to 28 March 2026 are £393 million (last year: £394 million). This relates
to payments of £229 million on lease principal (last year: £237 million), £47 million on lease interest (last year: £49 million), £99 million
on variable lease payments (last year: £91 million), and £18 million on other lease payments principally relating to short-term leases
and leases in holdover (last year: £17 million).
22. Provisions for other liabilities and charges
Restructuring
1
Balance as at 29 March 2025
43
8
9
60
Effect of foreign exchange rate changes
–
–
–
–
Created during the year
6
45
2
53
Discount unwind
1
–
–
1
Utilised during the year
(2)
(49)
(1)
(52)
Released during the year
(2)
–
(4)
(6)
Balance as at 28 March 2026
46
4
6
56
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 6
for details of adjusting items.
The net charge in the year for property obligations is £4 million (last year: £2 million), relating to future property reinstatement costs.
The net release in the year for other provisions of £2 million (last year: net charge of £2 million) includes charges of £2 million (last year:
£4 million) and releases of £4 million (last year: £2 million) relating to employee matters and tax compliance.
Analysis of total provisions:
Non-current
38
33
Current
18
27
Total
56
60
The non-current provisions relate to property reinstatement costs which are expected to be utilised within 17 years (last year: 15 years).
Burberry Annual Report 2025/26224

Financial Statements | Notes to the Financial Statements
226 Burberry Annual Report 25/26
23. Overdrafts and borrowings
As at 28 March 2026
As at 29 March 2025
Bank overdrafts
1
–
57
57
105
105
1.125% £300m MTN Sustainability-linked bond
2
Sep 2025
–
–
300
294
5.75% £450m MTN Fixed rate bond
3
Jun 2030
436
450
438
443
£75 million multi-currency revolving credit facility
4
Mar 2028
75
75
–
–
Total
568
582
843
842
1. Bank overdrafts includes £57 million (last year: £105 million) representing balances on cash pooling arrangements in the Group, as well as £nil (last year: £nil) relating to a number
of committed and uncommitted arrangements agreed with third parties. 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 RCF with a syndicate of banks, originally maturing in March 2027. During the year, the Group exercised its option to extend the facility
by an additional year to March 2028 with the consent of the syndicate. The interest rate on the £75 million RCF is SONIA plus commercial margin. There were no drawdowns
or repayments of the RCF during the prior year.
The Group has a £300 million multi-currency 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 28 March 2026 there were no outstanding drawings.
The revolving credit facilities have a single leverage covenant. The Group is in compliance with the financial and other covenants within
the facilities above and has been in compliance throughout the financial period.
24. 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 year
571
–
As at 29 March 2025
363,816,314
0.2
Allotted on exercise of options during the year
21,092
–
As at 28 March 2026
363,837,406
0.2
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. There has been no share buy-back programme in the current period.
As at 28 March 2026, the Company held 2.8 million treasury shares (last year: 4.6 million), with a market value of £29 million (last year:
£37 million) based on the share price at the reporting date. The treasury shares held by the Company are related to the share buy-back
programme completed during the 53 weeks to 2 April 2022. During the 52 weeks to 28 March 2026, 1.8 million treasury shares were
transferred to ESOP trusts (last year: 0.6 million). During the 52 weeks to 28 March 2026, no treasury shares were cancelled (last 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 28 March 2026, the cost of own shares held by ESOP trusts and offset against retained earnings
is £48 million (last year: £29 million). As at 28 March 2026, the ESOP trusts held 2.8 million shares (last year: 1.7 million) in the Company,
with a market value of £29 million (last year: £14 million). In the 52 weeks to 28 March 2026 the Group purchased £5 million of ESOP
shares (last year: £nil) for employee share awards that require market purchase shares. In the 52 weeks to 28 March 2026, the ESOP
trusts and the Company have waived their entitlement to dividends.
Other reserves in the Statement of Changes in Equity consist 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.
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 225
21. Lease liabilities continued
The Group’s accounting policy for leases is set out in note 2. Details of Income Statement charges and income from leases are set out
in note 5. The right-of-use asset categories on which depreciation is incurred are presented in note 14. Interest expense incurred on lease
liabilities is presented in note 8. Commitments relating to off-balance sheet leases are presented in note 25. The maturity of undiscounted
future lease liabilities are set out in note 26.
Total cash outflows in relation to leases in the 52 weeks to 28 March 2026 are £393 million (last year: £394 million). This relates
to payments of £229 million on lease principal (last year: £237 million), £47 million on lease interest (last year: £49 million), £99 million
on variable lease payments (last year: £91 million), and £18 million on other lease payments principally relating to short-term leases
and leases in holdover (last year: £17 million).
22. Provisions for other liabilities and charges
Property
obligations
£m
Restructuring
1
£m
Other
£m
Total
£m
Balance as at 29 March 2025
43
8
9
60
Effect of foreign exchange rate changes
–
–
–
–
Created during the year
6
45
2
53
Discount unwind
1
–
–
1
Utilised during the year
(2)
(49)
(1)
(52)
Released during the year
(2)
–
(4)
(6)
Balance as at 28 March 2026
46
4
6
56
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 6
for details of adjusting items.
The net charge in the year for property obligations is £4 million (last year: £2 million), relating to future property reinstatement costs.
The net release in the year for other provisions of £2 million (last year: net charge of £2 million) includes charges of £2 million (last year:
£4 million) and releases of £4 million (last year: £2 million) relating to employee matters and tax compliance.
As at
28 March
2026
£m
As at
29 March
2025
£m
Analysis of total provisions:
Non-current
38
33
Current
18
27
Total
56
60
The non-current provisions relate to property reinstatement costs which are expected to be utilised within 17 years (last year: 15 years).
Burberry Annual Report 2025/26 225

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 227
24. Share capital and reserves continued
Balance as at 30 March 2024
41
(3)
5
198
241
Other comprehensive income:
Cash flow hedges – losses deferred in equity
–
(1)
–
–
(1)
Cash flow hedges – transferred to income
–
2
–
–
2
Foreign currency translation differences
–
–
–
(25)
(25)
Total comprehensive income for the year
–
1
–
(25)
(24)
Balance as at 29 March 2025
41
(2)
5
173
217
Other comprehensive income:
Cash flow hedges – losses deferred in equity
–
1
–
–
1
Cash flow hedges – transferred to income
–
–
–
–
–
Foreign currency translation differences
–
–
–
(13)
(13)
Total comprehensive income for the year
–
1
–
(13)
(12)
Balance as at 28 March 2026
41
(1)
5
160
205
As at 28 March 2026, the amount held in the hedging reserve relating to matured net investment hedges is £5 million net of tax
(last year: £5 million).
25. Commitments
Financial commitments
The Group leases various retail stores, offices, warehouses and equipment under non-cancellable lease arrangements. The liabilities
for these leases are recorded on the Group’s Balance Sheet when the Group obtains control of the underlying asset. The Group has
additional commitments relating to leases where the Group has entered into an obligation but does not yet have control of the underlying
asset. The future lease payments to which the Group is committed, over the expected lease term, which are not recorded on the Group’s
Balance Sheet, are as follows:
Amounts falling due:
Within 1 year
4
1
Between 2 and 5 years
31
24
After 5 years
49
57
Total
84
82
The Group has entered into other contractual commitments in the normal course of business of £34 million (last year: £12 million) which
are not recognised as liabilities at the reporting date. These primarily relate to operating arrangements for service contracts and are
payable over the next five years.
Capital commitments
Contracted capital commitments represent contracts entered into by the year end for future work in respect of major capital expenditure
projects relating to property, plant and equipment and intangible assets which are not recorded on the Group’s Balance Sheet and
are as follows:
Capital commitments contracted but not provided for:
Property, plant and equipment
11
16
Intangible assets
4
2
Total
15
18
Burberry Annual Report 2025/26226

Financial Statements | Notes to the Financial Statements
228 Burberry Annual Report 25/26
26. Financial risk management
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 Group’s activities expose it to a variety of financial risks: market risks (including foreign exchange risk and interest rate risk),
credit risk, liquidity risk and capital risk.
Risk management is carried out by the Group treasury department (Group Treasury) based on forecast business requirements to reduce
financial risk and to ensure sufficient liquidity is available to meet foreseeable needs and to invest in cash and cash equivalents safely
and profitably. The Group uses derivative instruments to hedge certain risk exposures. Group Treasury does not operate as a profit
centre and transacts only in relation to the underlying business requirements. The policies of Group Treasury are reviewed and approved
by the Board of Directors annually.
Market risk
Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk arising from various non-sterling currencies.
The Group’s Income Statement is affected by transactions denominated in foreign currency. To reduce exposure to currency fluctuations,
the Group has a policy of hedging foreign currency denominated transactions by entering into forward foreign exchange contracts
(refer to note 18). These transactions are recorded as cash flow hedges. The Group’s foreign currency transactions arise principally from
purchases and sales of inventory.
The Group’s treasury risk management policy is to hedge, prior to market opening, 70-90% of its anticipated third-party foreign currency
exposure by currency, by season and where the net currency exposure is greater than £20 million. Currently, the Group hedges on
balance sheet intercompany foreign currency transactions. The Group uses forward exchange contracts to hedge its currency risk.
The Group designates the spot component of foreign currency forwards in hedge relationships and applies a ratio of 1:1. The forward
elements of the foreign currency forward are excluded from designation of the hedging instrument and are separately accounted for
as a cost of hedging and recognised in operating expenses on a discounted basis.
The Group determines the existence of an economic relationship between the hedging instrument and the hedged item based on the
currency, amount and timing of their respective cash flows. The Group assesses whether the derivative designated in each hedging
relationship is expected to be and has been effective in offsetting changes in cash flows of the hedged item using the dollar offset
method.
In these hedge relationships, ineffectiveness may arise if the timing of the forecast transaction changes from what was originally
estimated, or if there are changes in the credit risk of the Group or the derivative counterparty. There was no ineffectiveness in the 52
weeks ending 28 March 2026 (last year: no ineffectiveness).
The Group monitors the desirability of hedging the net assets of overseas subsidiaries when translated into sterling for reporting
purposes. The Group would use forward foreign exchange contracts to hedge net assets of overseas subsidiaries, relating to surplus
cash whose remittance is foreseeable. There were no outstanding net investment hedges as at 28 March 2026 (last year: no outstanding
net investment hedges).
At 28 March 2026, the Group has performed a sensitivity analysis to determine the effect of sterling strengthening/weakening by 10%
(last year: 10%) against other currencies with all other variables held constant. The effect on translating foreign currency denominated net
cash, trade, intercompany and other financial receivables and payables and financial instruments at fair value through profit or loss as at
28 March 2026 would have been to decrease/increase operating profit for the year by £3 million (last year: increase/decrease £4 million)
on a post-tax basis. The effect on translating forward foreign exchange contracts designated as cash flow hedges as at 28 March 2026
would have been to decrease/increase equity by £2 million (last year: decrease/increase £3 million) on a post-tax basis.
The following table shows the extent to which the Group has monetary assets and liabilities at the year end in currencies other than the
local currency of operation, after accounting for the effect of any specific forward foreign exchange contracts used to manage currency
exposure. Monetary assets and liabilities refer to cash, deposits, overdrafts, borrowings and other amounts to be received or paid in cash.
Amounts exclude intercompany balances which eliminate on consolidation. Foreign exchange differences on retranslation of these assets
and liabilities are recognised in net operating expenses.
As at 28 March 2026
As at 29 March 2025
Sterling
–
(1)
(1)
1
(1)
–
US Dollar
2
(11)
(9)
1
(20)
(19)
Euro
34
(37)
(3)
33
(32)
1
Chinese Yuan Renminbi
14
(25)
(11)
11
(3)
8
Other currencies
4
(18)
(14)
5
(27)
(22)
Total
54
(92)
(38)
51
(83)
(32)
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 227
24. Share capital and reserves continued
Capital
reserve
£m
Hedging reserves
Foreign currency
translation
reserve
£m
Total
£m
Cash flow
hedges
£m
Net investment
hedge
£m
Balance as at 30 March 2024
41
(3)
5
198
241
Other comprehensive income:
Cash flow hedges – losses deferred in equity
–
(1)
–
–
(1)
Cash flow hedges – transferred to income
–
2
–
–
2
Foreign currency translation differences
–
–
–
(25)
(25)
Total comprehensive income for the year
–
1
–
(25)
(24)
Balance as at 29 March 2025
41
(2)
5
173
217
Other comprehensive income:
Cash flow hedges – losses deferred in equity
–
1
–
–
1
Cash flow hedges – transferred to income
–
–
–
–
–
Foreign currency translation differences
–
–
–
(13)
(13)
Total comprehensive income for the year
–
1
–
(13)
(12)
Balance as at 28 March 2026
41
(1)
5
160
205
As at 28 March 2026, the amount held in the hedging reserve relating to matured net investment hedges is £5 million net of tax
(last year: £5 million).
25. Commitments
Financial commitments
The Group leases various retail stores, offices, warehouses and equipment under non-cancellable lease arrangements. The liabilities
for these leases are recorded on the Group’s Balance Sheet when the Group obtains control of the underlying asset. The Group has
additional commitments relating to leases where the Group has entered into an obligation but does not yet have control of the underlying
asset. The future lease payments to which the Group is committed, over the expected lease term, which are not recorded on the Group’s
Balance Sheet, are as follows:
As at
28 March
2026
£m
As at
29 March
2025
£m
Amounts falling due:
Within 1 year
4
1
Between 2 and 5 years
31
24
After 5 years
49
57
Total
84
82
The Group has entered into other contractual commitments in the normal course of business of £34 million (last year: £12 million) which
are not recognised as liabilities at the reporting date. These primarily relate to operating arrangements for service contracts and are
payable over the next five years.
Capital commitments
Contracted capital commitments represent contracts entered into by the year end for future work in respect of major capital expenditure
projects relating to property, plant and equipment and intangible assets which are not recorded on the Group’s Balance Sheet and
are as follows:
As at
28 March
2026
£m
As at
29 March
2025
£m
Capital commitments contracted but not provided for:
Property, plant and equipment
11
16
Intangible assets
4
2
Total
15
18
Burberry Annual Report 2025/26 227

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 229
26. Financial risk management continued
Market risk continued
Interest rate risk
The Group’s exposure to market risk for changes in interest rates relates primarily to cash, borrowings, short-term deposits and overdrafts.
Interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates.
The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term debt obligations with
fixed interest rates.
The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. Where the Group
is in a cash net of the long term debt position, the Group’s policy is to align the interest rate type of the debt with those of the cash
to establish a natural hedge.
To facilitate this, the Group enters into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between
fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount. At 28 March 2026, after
taking into account the effect of interest rate swaps, approximately 100% of the Group’s long-term borrowings are at a floating rate
of interest (last year: 100%).
The floating rate financial liabilities at 28 March 2026 are £582 million (last year: £543 million) due to cash pool overdrafts, revolving
credit facility drawdown and borrowings swapped from fixed interest rate to floating interest rate. The fixed rate financial liabilities at 28
March 2026 are borrowings of £nil (last year: £300 million). If interest rates on floating rate financial liabilities had been 100 basis points
higher/lower (last year: 100 basis points), excluding the impact on cash pool overdraft balances and with all other variables held constant,
post-tax profit for the year would have been £4 million (last year: £3 million) lower/higher, as a result of higher/lower interest expense.
The floating rate financial assets as at 28 March 2026 comprise short-term deposits of £518 million (last year: £639 million), interest
bearing current accounts of £nil (last year: £1 million) and cash pool asset balances of £61 million (last year: £109 million). At 28 March
2026, if interest rates on floating rate financial assets had been 100 basis points higher/lower (last year: 100 basis points), excluding
the impact on gross cash pool asset balances and with all other variables held constant, post-tax profit for the year would have been
£4 million (last year: £3 million) higher/lower, as a result of higher/lower interest income.
Credit risk
Trade receivables
The Group has no significant concentrations of credit risk. The trade receivables balance is spread across a large number of different
customers with no single debtor during the year representing more than 7% of the total balance due (last year: 6%). The Group has
policies in place to ensure that wholesale sales are made to customers with an appropriate credit history. Sales to retail customers are
made in cash or via major credit cards. In some retail locations, where the Group’s store is contained within a department store or mall,
for example a concession, the sales proceeds may be initially held by the operator of the wider location, giving rise to retail debtors.
In addition, receivables balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not
significant and default rates have historically been very low.
The Group applies the simplified approach when measuring the trade receivables expected credit losses. The approach uses a lifetime
expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on segment, geographical
region and the days past due. The expected loss rates are reviewed annually, or when there is a significant change in external factors
potentially impacting credit risk, and are updated where management’s expectations of credit losses change. No changes have been
made to the expected loss rates during the 52 weeks to 28 March 2026.
The expected credit loss allowance for receivables was determined as follows:
Trade receivables
Weighted average expected loss rate %
2%
4%
7%
14%
20%
Gross carrying amount of trade receivables
115
16
3
2
15
151
Loss allowance
1
(2)
(5)
–
–
(11)
(18)
Trade receivables
Weighted average expected loss rate %
1%
4%
8%
18%
21%
Gross carrying amount of trade receivables
109
14
4
3
11
141
Loss allowance
1
(2)
(1)
–
(1)
(7)
(11)
1. The loss allowance contains expected credit loss and specific loss provisions.
Burberry Annual Report 2025/26228

Financial Statements | Notes to the Financial Statements
230 Burberry Annual Report 25/26
26. Financial risk management continued
Credit risk continued
Trade receivables continued
The closing loss allowances for receivables reconcile as follows:
As at 30 March 2024
10
Effect of foreign exchange rate changes
–
Impairment provision recognised in profit or loss during the year
5
Receivables written off during the year as uncollectable
(1)
Unused amount reversed
(3)
As at 29 March 2025
11
Effect of foreign exchange rate changes
–
Impairment provision recognised in profit or loss during the year
8
Receivables written off during the year as uncollectable
–
Unused amount reversed
(1)
As at 28 March 2026
18
In aggregate, as at 28 March 2026, the movement in the impairment provision on trade and other receivables and recorded in the Income
Statement was a net charge of £7 million (last year: £2 million), all of which relates to contracts with customers.
The maximum exposure to credit risk at the reporting date with respect to trade and other receivables is approximated by the carrying
amount on the Balance Sheet.
Receivables excluding trade receivables
The counterparty credit risk of other receivables is reviewed on a regular basis and the impairment is assessed as follows:
At inception the receivable is recorded net of expected 12-month credit losses. If a significant change in the credit risk occurs during
the life of the receivable, credit losses are recorded in the profit and loss account and the effective interest is calculated using the gross
carrying amount of the asset. If a loss event occurs, the effective interest is calculated using the amortised cost of the asset net of any
credit losses.
During the year ended 31 March 2013, the Group entered into a retail leasing arrangement in the Republic of Korea. As part of this
arrangement, a KRW 27 billion (£19 million) 15-year interest-free loan was provided to the landlord. The Group holds a registered
mortgage over the leased property for the equivalent value of the loan which acts as collateral. At 28 March 2026, the discounted fair
value of the loan is £12 million (last year: £13 million). The book value of the loan, recorded at amortised cost, is £12 million (last year:
£12 million). Other than this arrangement, the Group does not hold any other collateral as security. Management considers that the
security provided by the mortgage is sufficient risk mitigation and hence the credit loss relating to this receivable is not significant.
Other financial assets
With respect to credit risk arising from other financial assets, which comprise cash and short-term deposits and certain derivative
instruments, the Group’s exposure to credit risk arises from the default of the counterparty with a maximum exposure equal to the
carrying value of these instruments. The Group has policies that limit the amount of credit exposure to any financial institution and
only deposits funds with independently rated financial institutions with a minimum rating of ‘A’ other than where required for operational
purposes. A total of £nil (last year: £3 million) was held with institutions with a rating below ‘A’ at 28 March 2026. These amounts are
monitored on a weekly basis by the Treasury Committee.
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 229
26. Financial risk management continued
Market risk continued
Interest rate risk
The Group’s exposure to market risk for changes in interest rates relates primarily to cash, borrowings, short-term deposits and overdrafts.
Interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates.
The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term debt obligations with
fixed interest rates.
The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. Where the Group
is in a cash net of the long term debt position, the Group’s policy is to align the interest rate type of the debt with those of the cash
to establish a natural hedge.
To facilitate this, the Group enters into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between
fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount. At 28 March 2026, after
taking into account the effect of interest rate swaps, approximately 100% of the Group’s long-term borrowings are at a floating rate
of interest (last year: 100%).
The floating rate financial liabilities at 28 March 2026 are £582 million (last year: £543 million) due to cash pool overdrafts, revolving
credit facility drawdown and borrowings swapped from fixed interest rate to floating interest rate. The fixed rate financial liabilities at 28
March 2026 are borrowings of £nil (last year: £300 million). If interest rates on floating rate financial liabilities had been 100 basis points
higher/lower (last year: 100 basis points), excluding the impact on cash pool overdraft balances and with all other variables held constant,
post-tax profit for the year would have been £4 million (last year: £3 million) lower/higher, as a result of higher/lower interest expense.
The floating rate financial assets as at 28 March 2026 comprise short-term deposits of £518 million (last year: £639 million), interest
bearing current accounts of £nil (last year: £1 million) and cash pool asset balances of £61 million (last year: £109 million). At 28 March
2026, if interest rates on floating rate financial assets had been 100 basis points higher/lower (last year: 100 basis points), excluding
the impact on gross cash pool asset balances and with all other variables held constant, post-tax profit for the year would have been
£4 million (last year: £3 million) higher/lower, as a result of higher/lower interest income.
Credit risk
Trade receivables
The Group has no significant concentrations of credit risk. The trade receivables balance is spread across a large number of different
customers with no single debtor during the year representing more than 7% of the total balance due (last year: 6%). The Group has
policies in place to ensure that wholesale sales are made to customers with an appropriate credit history. Sales to retail customers are
made in cash or via major credit cards. In some retail locations, where the Group’s store is contained within a department store or mall,
for example a concession, the sales proceeds may be initially held by the operator of the wider location, giving rise to retail debtors.
In addition, receivables balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not
significant and default rates have historically been very low.
The Group applies the simplified approach when measuring the trade receivables expected credit losses. The approach uses a lifetime
expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on segment, geographical
region and the days past due. The expected loss rates are reviewed annually, or when there is a significant change in external factors
potentially impacting credit risk, and are updated where management’s expectations of credit losses change. No changes have been
made to the expected loss rates during the 52 weeks to 28 March 2026.
The expected credit loss allowance for receivables was determined as follows:
As at 28 March 2026
Current
£m
Less than 1
month
overdue
£m
Less than 2
months
overdue
£m
Less than 3
months
overdue
£m
Over
3 months
overdue
£m
Total
£m
Trade receivables
Weighted average expected loss rate %
2%
4%
7%
14%
20%
Gross carrying amount of trade receivables
115
16
3
2
15
151
Loss allowance
1
(2)
(5)
–
–
(11)
(18)
As at 29 March 2025
Trade receivables
Weighted average expected loss rate %
1%
4%
8%
18%
21%
Gross carrying amount of trade receivables
109
14
4
3
11
141
Loss allowance
1
(2)
(1)
–
(1)
(7)
(11)
1. The loss allowance contains expected credit loss and specific loss provisions.
Burberry Annual Report 2025/26 229

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 231
26. Financial risk management continued
Liquidity risk
The Group’s financial risk management policy aims to ensure that sufficient cash is maintained to meet foreseeable needs and close out
market positions. Due to the dynamic nature of the underlying business, Group Treasury aims to maintain flexibility in funding by keeping
committed credit lines available. For further details, refer to note 23.
All short-term trade and other payables, accruals, and bank overdrafts mature within one year or less. The carrying value of all
financial liabilities due in less than one year is equal to their contractual undiscounted cash flows, with the exception of lease liabilities.
The undiscounted contractual cash flows for lease liabilities due in less than one year is £255 million (last year: £262 million).
The maturity profile of the contractual undiscounted cash flows of the Group’s non-current financial liabilities, excluding derivatives used
for hedging, is as follows:
As at 28 March 2026
As at 29 March 2025
Other
1
In more than 1 year, but not more than 2 years
222
101
323
213
26
239
In more than 2 years, but not more than 3 years
140
26
166
192
26
218
In more than 3 years, but not more than 4 years
124
26
150
125
26
151
In more than 4 years, but not more than 5 years
88
463
551
116
26
142
In more than 5 years
358
3
361
378
465
843
Total financial liabilities
932
619
1,551
1,024
569
1,593
1. The other non-current financial liabilities as at 29 March 2025 have been restated to reflect the Group’s non-current contractual interest cash flows.
As at 28 March 2026, other non-current financial liabilities relate to borrowings of £511 million (last year: borrowings of £438 million).
Refer to note 23.
Capital risk
The Board reviews the Group’s capital allocation policy annually. The Group’s capital allocation framework defines its priorities for uses
of cash, underpinned by its principle to maintain a strong balance sheet with a solid investment grade credit rating. Subject to the
availability of capital, the framework has four priorities for the use of cash generated from operations:
• Re-investment in the business to drive organic growth
• Maintaining a progressive dividend policy
• Continuing to pursue selective inorganic strategic investment
• To the extent that there is surplus capital to these needs, providing additional returns to shareholders
At 28 March 2026, the Group had net cash of £614 million (last year: £708 million), borrowings of £511 million (last year: £738 million)
and total equity excluding non-controlling interests of £940 million (last year: £914 million). The borrowings at 28 March 2026 relate
to medium-term notes with a face value of £450 million (last year: £750 million) and a £75 million drawdown of the £75 million revolving
credit facility (last year: £nil). For further details, refer to note 23. Potential additional sources of funding available to the Group include
undrawn and additional bank facilities, longer-term debt and equity funding. The Group’s current capital resources, together with the
potential additional sources of funding, are considered sufficient to address the Group’s capital risk.
Burberry Annual Report 2025/26230

Financial Statements | Notes to the Financial Statements
232 Burberry Annual Report 25/26
27. Employee costs
Staff costs, including the cost of Directors, incurred during the year are as shown below. Directors’ remuneration, which is separately
disclosed in the Directors’ Remuneration Report on pages 141 to 177 and forms part of these financial statements, includes, for those
share options and awards where performance obligations have been met, the notional gains arising on the future exercise but excludes
the charge in respect of those share options and awards recognised in the Group Income Statement.
2026
1
2025
1
Wages and salaries
446
461
Social security costs
67
58
Pension costs
20
22
533
541
Termination benefits
33
17
Equity-settled share-based payment charge
21
18
Total
587
576
1. Employee costs for the 52 weeks to 28 March 2026 include a charge of £33 million (last year: £16 million) arising as a result of the Group’s restructuring programme which
is presented as an adjusting item. Refer to note 6 for further details.
Pension costs include contributions to the Group’s defined contribution plan for eligible employees.
The average number of full-time equivalent employees (including Executive Directors) during the year was as follows:
EMEIA
1
3,774
4,431
Greater China
2,3
1,600
1,830
Americas
1,194
1,238
Asia Pacific
2,4
1,045
1,202
Total
7,613
8,701
1. EMEIA comprises Europe, Middle East, India and Africa.
2. Commencing 30 March 2025, the former Asia Pacific region was restructured into two regions, Asia Pacific and Greater China. The average number of full-time equivalent
employees (including Executive Directors) for the comparative periods has been restated to reflect the new regional structure. For the 52 weeks to 29 March 2025, the number
of employees attributable to Asia Pacific decreased by 1,830 with those employees now attributable to Greater China.
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.
Shares and share options granted to Directors and employees
The Group had the following share-based compensation schemes in operation during the year:
Share-based compensation scheme
Participants
Vesting requirements
Burberry Share Plan (BSP)
Executive
3 years
Equity and
Continued service and conditional upon meeting underpins: total
revenue, ROIC and reasonable progress in respect of our strategy
to elevate our brand and build a more sustainable future
Burberry Share Plan (BSP)
Management
3 years
Equity and
Continued service
Award Schemes
cash
Burberry Share Plan (BSP)
Management
3 years
Equity and
Continued service and conditional upon Burberry achieving
a specified total shareholder return performance by the end
of a three-year period
Executive Share Plan (ESP)
Management
4 years
Equity and
Thresholds and targets for all ESP schemes have now been
Nil cost Option Schemes
cash
assessed and the number of shares awarded has been approved
ShareSave (SAYE) Option
All employees
5 years
Equity and
Continued service
Schemes
cash
Free Share Plan Award
All employees
3 years
Equity and
Continued service
Schemes
cash
Recruitment Share Award
CEO
3 years
Equity
Continued service and conditional upon Burberry achieving
a
specified total shareholder return performance by the end
of a three-year period
Where applicable, equity swaps have been entered into to cover future employer’s national insurance liability (or overseas equivalent)
that may arise in respect of these schemes.
The fair value charge relating to Burberry Share Plan (BSP) Award Schemes, ShareSave (SAYE) Schemes, and Free Share Plan Schemes
was £15 million, £2 million and £3 million, respectively (last year: £12 million, £3 million and £2 million, respectively). The fair value charge
relating to the remaining schemes was £1 million (last year: £1 million).
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 231
26. Financial risk management continued
Liquidity risk
The Group’s financial risk management policy aims to ensure that sufficient cash is maintained to meet foreseeable needs and close out
market positions. Due to the dynamic nature of the underlying business, Group Treasury aims to maintain flexibility in funding by keeping
committed credit lines available. For further details, refer to note 23.
All short-term trade and other payables, accruals, and bank overdrafts mature within one year or less. The carrying value of all
financial liabilities due in less than one year is equal to their contractual undiscounted cash flows, with the exception of lease liabilities.
The undiscounted contractual cash flows for lease liabilities due in less than one year is £255 million (last year: £262 million).
The maturity profile of the contractual undiscounted cash flows of the Group’s non-current financial liabilities, excluding derivatives used
for hedging, is as follows:
As at 28 March 2026
As at 29 March 2025
Lease
liabilities
£m
Other
£m
Total
£m
Lease
liabilities
£m
Other
1
£m
Total
£m
In more than 1 year, but not more than 2 years
222
101
323
213
26
239
In more than 2 years, but not more than 3 years
140
26
166
192
26
218
In more than 3 years, but not more than 4 years
124
26
150
125
26
151
In more than 4 years, but not more than 5 years
88
463
551
116
26
142
In more than 5 years
358
3
361
378
465
843
Total financial liabilities
932
619
1,551
1,024
569
1,593
1. The other non-current financial liabilities as at 29 March 2025 have been restated to reflect the Group’s non-current contractual interest cash flows.
As at 28 March 2026, other non-current financial liabilities relate to borrowings of £511 million (last year: borrowings of £438 million).
Refer to note 23.
Capital risk
The Board reviews the Group’s capital allocation policy annually. The Group’s capital allocation framework defines its priorities for uses
of cash, underpinned by its principle to maintain a strong balance sheet with a solid investment grade credit rating. Subject to the
availability of capital, the framework has four priorities for the use of cash generated from operations:
• Re-investment in the business to drive organic growth
• Maintaining a progressive dividend policy
• Continuing to pursue selective inorganic strategic investment
• To the extent that there is surplus capital to these needs, providing additional returns to shareholders
At 28 March 2026, the Group had net cash of £614 million (last year: £708 million), borrowings of £511 million (last year: £738 million)
and total equity excluding non-controlling interests of £940 million (last year: £914 million). The borrowings at 28 March 2026 relate
to medium-term notes with a face value of £450 million (last year: £750 million) and a £75 million drawdown of the £75 million revolving
credit facility (last year: £nil). For further details, refer to note 23. Potential additional sources of funding available to the Group include
undrawn and additional bank facilities, longer-term debt and equity funding. The Group’s current capital resources, together with the
potential additional sources of funding, are considered sufficient to address the Group’s capital risk.
Burberry Annual Report 2025/26 231

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 233
27. Employee costs continued
Movements during the year
The number and weighted average exercise price (WAEP) of, and movements in, share-based compensation schemes during the year
are as follows:
For the 52 weeks ended 28 March 2026:
Awards
WAEP
Options
WAEP
Options
WAEP
Awards
WAEP
Awards
WAEP
Outstanding at 29 March 2025
3,585,929
115,523
–
2,004,701
£8.63
743,397
392,366
Granted
2,762,123
–
–
348,128
£9.41
232,798
–
Forfeited
(615,505)
(4,807)
–
(539,127)
£13.76
(85,858)
–
Exercised
(741,661)
(36,764)
–
(21,092)
£7.37
(178,298)
–
Outstanding at 28 March 2026
4,990,886
73,952
–
1,792,610
£8.30
712,039
392,366
Exercise price range
–
£7.13
– £16.72
Weighted average remaining
contractual life (years)
1.7
–
2.1
1.8
1.3
Exercisable at 28 March 2026
–
73,952
68,986
111,876
–
For the 52 weeks ended 29 March 2025:
Awards
WAEP
Options
WAEP
Options
WAEP
Awards
WAEP
Awards
WAEP
Outstanding at 30 March 2024
2,252,737
149,391
–
1,451,065
£13.45
582,029
–
Granted
2,664,253
–
–
1,610,987
£7.13
350,319
392,366
Forfeited
(723,984)
(6,881)
–
(1,049,713)
£13.43
(76,629)
–
Exercised
(607,077)
(26,987)
–
(7,638)
£11.64
(112,322)
–
Outstanding at 29 March 2025
3,585,929
115,523
–
2,004,701
£8.63
743,397
392,366
Exercise price range
–
£7.13 – £16.72
Weighted average remaining
contractual life (years)
1.9
–
2.7
2.6
2.3
Exercisable at 29 March 2025
1,198
115,523
123,228
3,093
–
The weighted average share price at the date of exercise for awards exercised or vested in the period was £12.84 (last year: £8.28).
Burberry Annual Report 2025/26232

Financial Statements | Notes to the Financial Statements
234 Burberry Annual Report 25/26
27. Employee costs continued
Valuation models and key assumptions used
During the year, awards were granted under the BSP Schemes on 31 July 2025 and 20 November 2025 at a fair value of £12.92
and £11.40, respectively. These values are based on the closing share price of an ordinary share at the date of grant.
The ShareSave (SAYE) Option Schemes have been valued using the Black-Scholes option pricing model and the award granted under
the BSP scheme conditional on achieving a specified total shareholder return performance has been valued using the Monte Carlo
pricing model.
The assumptions applied to the options granted in the respective periods are as follows:
Black-Scholes
52 weeks ended 28 March 2026
52 weeks ended 29 March 2025
Grant date
11 December 2025
12 December 2024
Expected dividend yield (%)
1.07
1.16
Expected volatility (%)
1
(3-year/5-year term)
36.42 / 34.9
34.77 / 36.5
Risk-free interest rate (%) (3-year/5-year term)
3.81 / 3.96
4.04 / 4.18
Expected life of option (years)
3 / 5
3 / 5
Weighted average exercise price (£)
9.41
7.12
Share price at grant (£)
12.18
9.76
Weighted average fair value of options granted (£) (3-year/5-year term)
4.54 / 5.20
3.80 / 4.44
BSP Award
Recruitment Share Award
Monte Carlo
52 weeks ended 28 March 2026
52 weeks ended 29 March 2025
Grant date
31 July 2025
19 December 2024
Expected dividend yield (%)
0.0
0.0
Expected volatility (%)
1
39.4
36.5
Risk-free interest rate (%)
3.84
4.3
Expected life of awards (years)
3.0
4.6
Discount for post vesting restrictions (%)
–
15
Share price at grant (£)
12.91
9.51
Weighted average fair value of awards granted (£)
8.05
4.57
1. Volatility is determined by calculating the historical annualised standard deviation of the market price of Burberry Group plc shares over a period of time, prior to the grant,
equivalent to the expected life of the option.
28. Related party transactions
Transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on
consolidation and are not disclosed in this note. Total compensation in respect of key management, who are defined as the Board
of Directors and certain members of senior management, is considered to be a related party transaction.
The total compensation in respect of key management for the year was as follows:
Salaries, short-term benefits and social security costs
1
9
6
Share-based compensation (all awards and options settled in shares)
3
–
Termination benefits
–
1
Total
12
7
1. Pension cash allowance is included within salaries, short-term benefits and social security costs.
The Group donates each year to The Burberry Foundation, an independent charity which meets the criteria to be reported as a related
party in accordance with IFRS. Charitable donations to The Burberry Foundation for the 52 weeks to 28 March 2026 were £2 million
(last year: £4 million).
There were no other material related party transactions in the year.
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 233
27. Employee costs continued
Movements during the year
The number and weighted average exercise price (WAEP) of, and movements in, share-based compensation schemes during the year
are as follows:
For the 52 weeks ended 28 March 2026:
Burberry Share Plan
(BSP) Award Schemes
Executive Share Plan
(ESP) Nil cost Option
Schemes
ShareSave (SAYE) Option
Schemes
Free Share Plan Award
Schemes
Recruitment Share
Award
Awards
WAEP
Options
WAEP
Options
WAEP
Awards
WAEP
Awards
WAEP
Outstanding at 29 March 2025
3,585,929
115,523
–
2,004,701
£8.63
743,397
392,366
Granted
2,762,123
–
–
348,128
£9.41
232,798
–
Forfeited
(615,505)
(4,807)
–
(539,127)
£13.76
(85,858)
–
Exercised
(741,661)
(36,764)
–
(21,092)
£7.37
(178,298)
–
Outstanding at 28 March 2026
Exercise price range
4,990,886
73,952
–
–
1,792,610
£7.13 – £16.72
£8.30
712,039
392,366
Weighted average remaining
contractual life (years)
1.7
–
2.1
1.8
1.3
Exercisable at 28 March 2026
–
73,952
68,986
111,876
–
For the 52 weeks ended 29 March 2025:
Burberry Share Plan
(BSP) Award Schemes
Executive Share Plan
(ESP) Nil cost Option
Schemes
ShareSave (SAYE) Option
Schemes
Free Share Plan Award
Schemes
Recruitment Share
Award
Awards
WAEP
Options
WAEP
Options
WAEP
Awards
WAEP
Awards
WAEP
Outstanding at 30 March 2024
2,252,737
149,391
–
1,451,065
£13.45
582,029
–
Granted
2,664,253
–
–
1,610,987
£7.13
350,319
392,366
Forfeited
(723,984)
(6,881)
–
(1,049,713)
£13.43
(76,629)
–
Exercised
(607,077)
(26,987)
–
(7,638)
£11.64
(112,322)
–
Outstanding at 29 March 2025
Exercise price range
3,585,929
115,523
–
–
2,004,701
£7.13 – £16.72
£8.63
743,397
392,366
Weighted average remaining
contractual life (years)
1.9
–
2.7
2.6
2.3
Exercisable at 29 March 2025
1,198
115,523
123,228
3,093
–
The weighted average share price at the date of exercise for awards exercised or vested in the period was £12.84 (last year: £8.28).
Burberry Annual Report 2025/26 233

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 235
29. Subsidiary undertakings and investments
In accordance with Section 409 of the Companies Act 2006, a full list of related undertakings as at 28 March 2026, including their
country of incorporation and percentage share ownership, is disclosed below. Unless otherwise stated, all undertakings are indirectly
owned by Burberry Group plc and operate in the country of incorporation. All the subsidiary undertakings have been consolidated
as at 28 March 2026.
Company name
Country/territory of incorporation
Interest
Burberry Pacific Pty Ltd
Australia
Ordinary shares
100
1
Burberry (Austria) GmbH
Austria
Ordinary shares
100
2
Sandringham Bahrain W.L.L.
1
Bahrain
Ordinary shares
100
3
Burberry Antwerp NV
Belgium
Ordinary shares
100
4
Burberry Brasil Comércio de Artigos de Vestuário
Brazil
Quota
100
5
e Acessórios Ltda
Burberry Canada Inc
Canada
Common shares
100
6
Burberry (Shanghai) Trading Co., Ltd
Mainland China
Equity interest
100
7
Burberry Czech Rep s.r.o.
Czech Republic
Ordinary shares
100
8
Burberry France SASU
France
Ordinary shares
100
9
Burberry (Deutschland) GmbH
Germany
Ordinary shares
100
10
Burberry Asia Holdings Limited
Hong Kong S.A.R., China
Ordinary shares
100
11
Burberry China Holdings Limited
Hong Kong S.A.R., China
Ordinary shares
100
11
Burberry Asia Limited
Hong Kong S.A.R., China
Ordinary shares
100
11
Burberry Hungary Kereskedelmi Korlátolt
Hungary
Ordinary shares
100
12
Felelősségű Társaság
Burberry India Private Limited
India
Ordinary shares
51
13
Burberry Ireland Investments Unlimited Company
Ireland
Ordinary A shares
100
14
Ordinary B shares
100
Burberry Ireland Limited
Ireland
Ordinary shares
100
14
Burberry Italy (Rome) S.R.L.
Italy
Quota
100
15
Burberry Italy S.R.L.
2
Italy
Quota
100
15
Burberry Tecnica S.R.L.
Italy
Quota
100
16
Burberry Manifattura S.R.L.
Italy
Quota
100
17
Burberry Japan K.K.
Japan
Ordinary shares
100
18
Burberry Kuwait General Trading Textiles and Accessories
Kuwait
Capital units
49
19
Company W.L.L.
3
Burberry Macau Limited
Macau S.A.R., China
Quota
100
20
Burberry (Malaysia) Sdn. Bhd.
Malaysia
Ordinary shares
100
21
Horseferry México S.A. de C.V.
Mexico
Ordinary (fixed) shares
100
22
Ordinary (variable) shares
100
Horseferry México Servicios Administrativos, S.A. de C.V.
6
Mexico
Ordinary (fixed) shares
100
22
Burberry Netherlands B.V.
Netherlands
Ordinary shares
100
23
Burberry New Zealand Limited
New Zealand
Ordinary shares
100
24
Burberry Qatar W.L.L.
3
Qatar
Ordinary shares
49
25
Burberry Korea Limited
Republic of Korea
Common stock
100
26
Burberry Retail LLC
4
Russian Federation
Participatory share
100
27
Burberry Saudi Company Limited
Kingdom of Saudi Arabia
Ordinary shares
100
28
Burberry (Singapore) Distribution Company PTE Ltd
Singapore
Ordinary shares
100
29
Burberry (Spain) Retail S.L.
Spain
Ordinary shares
100
30
Burberry (Suisse) SA
2
Switzerland
Ordinary shares
100
31
Burberry (Taiwan) Co., Ltd
Taiwan Area, China
Common shares
100
32
Burberry (Thailand) Limited
Thailand
Common shares
100
33
Burberry Annual Report 2025/26234

Financial Statements | Notes to the Financial Statements
236 Burberry Annual Report 25/26
29. Subsidiary undertakings and investments continued
Interest
Burberry Turkey Giyim Toptan Ve Perakende Satış Limited Şirketi
Turkey
Ordinary shares
100
34
Burberry FZ-LLC
United Arab Emirates
Ordinary shares
100
35
Burberry Middle East LLC
3
United Arab Emirates
Ordinary shares
49
36
Burberry (Espana) Holdings Limited
5
United Kingdom
Ordinary shares
100
37
Burberry (No. 7) Unlimited
United Kingdom
Ordinary shares
100
37
Burberry (UK) Limited
5
United Kingdom
Ordinary shares
100
37
Burberry Europe Holdings Limited
2,5
United Kingdom
Ordinary shares
100
37
Burberry Finance Limited
5
United Kingdom
Ordinary shares
100
37
Burberry Haymarket Limited
2,5
United Kingdom
Ordinary shares
100
37
Burberry Holdings Limited
5
United Kingdom
Ordinary shares
100
37
Burberry International Holdings Limited
2
United Kingdom
Ordinary shares
100
37
Burberry Latin America Limited
5
United Kingdom
Ordinary shares
100
37
Burberry Limited
United Kingdom
Ordinary shares
100
37
Burberry London Limited
5
United Kingdom
Ordinary shares
100
37
Burberrys Limited
2,5
United Kingdom
Ordinary shares
100
37
Sweet Street Developments Limited
5
United Kingdom
Ordinary shares
100
37
The Scotch House Limited
2,5
United Kingdom
Ordinary shares
100
37
Thomas Burberry Holdings Limited
2,5
United Kingdom
Ordinary shares
100
37
Thomas Burberry Limited
2,5
United Kingdom
Ordinary shares
100
37
Woodrow-Universal Limited
2,5
United Kingdom
Ordinary shares
100
37
Woodrow-Universal Pension Trustee Limited
2, 5
United Kingdom
Ordinary shares
100
37
Burberry (Wholesale) Limited
United States
Class X common stock
100
38
Class Y common stock
100
Burberry Limited
United States
Class X common stock
100
38
Class Y common stock
100
Burberry North America, Inc.
United States
Common stock
100
39
1. The Group has an indirect holding of 100% of the issued share capital through a nominee.
2. Held directly by Burberry Group plc.
3. The Group has a 100% share of profits of Burberry Middle East LLC as well as a 100% and majority share of profits in Burberry Middle East LLC’s subsidiaries in Kuwait and Qatar
respectively. The Group has the power to control these companies under the agreements relating to Burberry Middle East LLC.
4. Burberry Retail LLC’s stores have been closed since March 2022.
5. This subsidiary will take the audit exemption allowed under Section 479A of the Companies Act 2006 for the year ended 28 March 2026.
6. Horseferry México Servicios Administrativos, S.A. de C.V. entered liquidation on 5 November 2024.
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 235
29. Subsidiary undertakings and investments
In accordance with Section 409 of the Companies Act 2006, a full list of related undertakings as at 28 March 2026, including their
country of incorporation and percentage share ownership, is disclosed below. Unless otherwise stated, all undertakings are indirectly
owned by Burberry Group plc and operate in the country of incorporation. All the subsidiary undertakings have been consolidated
as at 28 March 2026.
Company name
Country/territory of incorporation
Interest
Holding
(%)
Registered
office
Burberry Pacific Pty Ltd
Australia
Ordinary shares
100
1
Burberry (Austria) GmbH
Austria
Ordinary shares
100
2
Sandringham Bahrain W.L.L.
1
Bahrain
Ordinary shares
100
3
Burberry Antwerp NV
Belgium
Ordinary shares
100
4
Burberry Brasil Comércio de Artigos de Vestuário
e Acessórios Ltda
Brazil
Quota
100
5
Burberry Canada Inc
Canada
Common shares
100
6
Burberry (Shanghai) Trading Co., Ltd
Mainland China
Equity interest
100
7
Burberry Czech Rep s.r.o.
Czech Republic
Ordinary shares
100
8
Burberry France SASU
France
Ordinary shares
100
9
Burberry (Deutschland) GmbH
Germany
Ordinary shares
100
10
Burberry Asia Holdings Limited
Hong Kong S.A.R., China
Ordinary shares
100
11
Burberry China Holdings Limited
Hong Kong S.A.R., China
Ordinary shares
100
11
Burberry Asia Limited
Hong Kong S.A.R., China
Ordinary shares
100
11
Burberry Hungary Kereskedelmi Korlátolt
Felelősségű Társaság
Hungary
Ordinary shares
100
12
Burberry India Private Limited
India
Ordinary shares
51
13
Burberry Ireland Investments Unlimited Company
Ireland
Ordinary A shares
Ordinary B shares
100
100
14
Burberry Ireland Limited
Ireland
Ordinary shares
100
14
Burberry Italy (Rome) S.R.L.
Italy
Quota
100
15
Burberry Italy S.R.L.
2
Italy
Quota
100
15
Burberry Tecnica S.R.L.
Italy
Quota
100
16
Burberry Manifattura S.R.L.
Italy
Quota
100
17
Burberry Japan K.K.
Japan
Ordinary shares
100
18
Burberry Kuwait General Trading Textiles and Accessories
Company W.L.L.
3
Kuwait
Capital units
49
19
Burberry Macau Limited
Macau S.A.R., China
Quota
100
20
Burberry (Malaysia) Sdn. Bhd.
Malaysia
Ordinary shares
100
21
Horseferry México S.A. de C.V.
Mexico
Ordinary (fixed) shares
Ordinary (variable) shares
100
100
22
Horseferry México Servicios Administrativos, S.A. de C.V.
6
Mexico
Ordinary (fixed) shares
100
22
Burberry Netherlands B.V.
Netherlands
Ordinary shares
100
23
Burberry New Zealand Limited
New Zealand
Ordinary shares
100
24
Burberry Qatar W.L.L.
3
Qatar
Ordinary shares
49
25
Burberry Korea Limited
Republic of Korea
Common stock
100
26
Burberry Retail LLC
4
Russian Federation
Participatory share
100
27
Burberry Saudi Company Limited
Kingdom of Saudi Arabia
Ordinary shares
100
28
Burberry (Singapore) Distribution Company PTE Ltd
Singapore
Ordinary shares
100
29
Burberry (Spain) Retail S.L.
Spain
Ordinary shares
100
30
Burberry (Suisse) SA
2
Switzerland
Ordinary shares
100
31
Burberry (Taiwan) Co., Ltd
Taiwan Area, China
Common shares
100
32
Burberry (Thailand) Limited
Thailand
Common shares
100
33
Burberry Annual Report 2025/26 235

Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 237
29. Subsidiary undertakings and investments continued
Ref
Registered office address
1
Suite 201, Level 2, 343 George Street, Sydney NSW 2000, Australia
2
Kohlmarkt 2, 1010 Wien, Austria
3
Building 2758, Flat no. 1081, Road 4650, Block 346, Manama/Sea Front, Bahrain
4
Waterloolaan 48, 1000, Brussels, Belgium
5
City of São Paulo, State of São Paulo, at Rua do Rocio, 350, 3rd Pavement of Condominium Atrium IX, suites No. 32, 28th subdistrict,
Vila Olímpia, CEP 04552-000, Brazil
6
100
King Street West, 1 First Canadian Place, Suite 1600, Toronto ON M5X 1G5, Canada
7
60th Floor (Actual Floor No.53), Wheelock Square, No. 1717 Nanjing West Road, Jing’an Districts, Shanghai 200040, People’s Republic
of China
8
Praha 1, Pařížská 11/67, PSČ 11000, Czech Republic
9
56A rue du Faubourg Saint-Honoré, 75008, Paris, France
10
Königsallee 50, 40212, Düsseldorf, Germany
11
Flat /RM 2201-02 & 09-14, 22F FWD Tower, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong
12
H-1068
Budapest Dózsa György út 84. B, Hungary
13
10th Floor, International Trade Tower, Nehru Place, New Delhi, South East Delhi, Delhi 110019, India
14
One Spencer Dock, North Wall Quay, Dublin 1, Ireland
15
Via Manzoni n.20, CAP, 20121, Milano, Italy
16
Via Italia 6/A, 10093 Collegno (TO), Italy
17
Via delle Fonti n.10, 50018 Scandicci, Italy
18
5-14 Ginza 2-chome, Chuo-ku, Tokyo, Japan
19
Hawally, Block 8, Street 276, Plot 9301, Unit No 12, Floor 7, Kuwait
20
MacauShop Unit 1202 on Mezzanine Level and Shop Unit 2812 on Level 2 in Shoppes at Four Seasons, Estrada Da Baía De N. Senhora
De Esperança, S/N, Taipa, Macau
21
Unit 9.01, PJ Tower, Amcorp Trade Centre, 18, Persiaran Barat, 46050 Petaling Jaya Selangor, Malaysia
22
Edgar Allan Poe 85-B, Col. Polanco, Delg. Miguel Hidalgo, Mexico City, 11560, Mexico
23
Pieter Cornelisz. Hooftstraat 50 H, 1071CA Amsterdam, Netherlands
24
Level 20, HSBC Tower, 188 Quay Street, Auckland, 1010, New Zealand
25
First Floor, Building No. 660, Street no. 364, Al Waab, Zone No.54A, Al Marikh, Al Rayyan Municipality South, Doha, Qatar
26
459, Dosan-daero, Gangnam-gu, Seoul, Republic of Korea
27
Ulitsa Petrovka, 16, floor 3, Premise I, rooms 47-53, 127051, Moscow, Russian Federation
28
1st Floor, Building No. 7235, Al Olaya Street, 2392 Al Olya District Riyadh 12244, Kingdom of Saudi Arabia
29
391B
Orchard Road, #15-02/03, Ngee Ann City, 238874, Singapore
30
Passeig de Gràcia, 56, 08007, Barcelona, Spain
31
Route de Chêne 30A, c/o L&S Trust Services SA, 1208 Genève, Switzerland
32
5F. No 451 Changchun Rd, Songshan Dist, Taipei City 10547, Taiwan
33
No.127
Office 25.03; Level 25; Gaysorn Tower; Ratchadamri Road, Lumpini Sub-District; Pathumwan District; 10330 Bangkok; Thailand
34
Reşitpaşa Mahallessi Eski Büyükdere Cad. Windowist Tower Sit. No: 26/1 Sariyer/Istanbul, Turkey
35
Dubai Design District, Premises:, 312, 313, 314 & 315, Floor: 03, Building: 08, Dubai Design District, United Arab Emirates
36
Dubai Design District, Building 8, Level 3, Unit no 314 and 315 PO Box 83916, Dubai, United Arab Emirates
37
Horseferry House, Horseferry Road, London, SW1P 2AW, United Kingdom
38
Corporation Service Company, 80 State Street, Albany, NY, 12207-2543, USA
39
Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, USA
30. 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 has 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.
Burberry Annual Report 2025/26236

Financial Statements | Five Year Summary (UNAUDITED)
FIVE YEAR SUMMARY (UNAUDITED)
238 Burberry Annual Report 25/26
To end of year
Revenue by channel
2022
£m
2023
£m
2024
£m
2025
£m
2026
£m
Retail
2,273
2,501
2,400
2,076
2,056
Wholesale
512
543
506
319
303
Retail/Wholesale
2,785
3,044
2,906
2,395
2,359
Licensing
41
50
62
66
61
Total revenue
2,826
3,094
2,968
2,461
2,420
Profit by channel
£m £m £m £m £m
Retail/Wholesale
1
486
587
359
(36)
103
Licensing
37
47
59
62
57
Adjusted operating profit
1
523
634
418
26
160
Segmental analysis of adjusted profit
1
% % % % %
Retail/Wholesale gross margin
70.2
70.0
67.0
61.5
67.1
Retail/Wholesale operating expenses as a percentage of sales
52.7
50.7
54.6
63.0
62.7
Retail/Wholesale operating margin
17.5
19.3
12.4
(1.5)
4.4
Licensing operating margin
90.2
91.9
94.0
93.8
93.2
Adjusted operating profit margin
18.5
20.5
14.1
1.0
6.6
Summary profit analysis
£m £m £m £m £m
Adjusted operating profit
1
523
634
418
26
160
Net finance expense
1
(31)
(21)
(35)
(63)
(66)
Adjusted profit/(loss) before taxation
1
492
613
383
(37)
94
Adjusting items
19
21
–
(29)
(45)
Profit/(loss) before taxation
511
634
383
(66)
49
Taxation
(114)
(142)
(112)
(9)
(29)
Non-controlling interest
(1)
(2)
(1)
–
1
Attributable profit/(loss)
396
490
270
(75)
21
Retail/Wholesale revenue by product division
£m £m £m £m £m
Accessories
1,017
1,125
1,055
841
837
Womenswear
784
867
860
718
728
Menswear
807
868
842
732
701
Childrenswear and other
177
184
149
104
93
Retail/Wholesale revenue by destination
£m £m £m £m £m
EMEIA
2
813
1,004
1,017
842
821
Greater China
3,4
901
838
835
662
670
Americas
696
743
603
510
505
Asia Pacific
3,5
375
459
451
381
363
Financial KPIs
% % % % %
Total revenue growth
6
+23
+5
–
-15
–
Comparable store sales growth
6
+18
+7
-1
-12
+2
Adjusted operating profit growth
1,6
+38
+8
-25
-88
+551
Adjusted operating profit margin
1
18.5
20.5
14.1
1.0
6.6
Adjusted diluted EPS growth
1
+40
+30
-40
-120
+202
Adjusted Group return on invested capital (ROIC)
1
24.6
28.6
15.3
1.0
5.5
1. Excludes the impact of adjusting items. Refer to note 2q for the Group’s policy on adjusting items.
2. EMEIA comprises Europe, Middle East, India and Africa.
3. 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.
4. Greater China consists of Mainland China; Hong Kong S.A.R., China; Macau S.A.R., China; and Taiwan Area, China.
5. Asia Pacific consists of the rest of Asia; including Japan, South Korea, Southeast Asia, Australia and New Zealand.
6. Growth rate is year-on-year underlying change, i.e. at constant exchange rates.
Financial Statements | Notes to the Financial Statements
Burberry Annual Report 25/26 237
29. Subsidiary undertakings and investments continued
Ref
Registered office address
1
Suite 201, Level 2, 343 George Street, Sydney NSW 2000, Australia
2
Kohlmarkt 2, 1010 Wien, Austria
3
Building 2758, Flat no. 1081, Road 4650, Block 346, Manama/Sea Front, Bahrain
4
Waterloolaan 48, 1000, Brussels, Belgium
5
City of São Paulo, State of São Paulo, at Rua do Rocio, 350, 3rd Pavement of Condominium Atrium IX, suites No. 32, 28th subdistrict,
Vila Olímpia, CEP 04552-000, Brazil
6
100 King Street West, 1 First Canadian Place, Suite 1600, Toronto ON M5X 1G5, Canada
7
60th Floor (Actual Floor No.53), Wheelock Square, No. 1717 Nanjing West Road, Jing’an Districts, Shanghai 200040, People’s Republic
of China
8
Praha 1, Pařížská 11/67, PSČ 11000, Czech Republic
9
56A rue du Faubourg Saint-Honoré, 75008, Paris, France
10
Königsallee 50, 40212, Düsseldorf, Germany
11
Flat /RM 2201-02 & 09-14, 22F FWD Tower, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong
12
H-1068 Budapest Dózsa György út 84. B, Hungary
13
10th Floor, International Trade Tower, Nehru Place, New Delhi, South East Delhi, Delhi 110019, India
14
One Spencer Dock, North Wall Quay, Dublin 1, Ireland
15
Via Manzoni n.20, CAP, 20121, Milano, Italy
16
Via Italia 6/A, 10093 Collegno (TO), Italy
17
Via delle Fonti n.10, 50018 Scandicci, Italy
18
5-14 Ginza 2-chome, Chuo-ku, Tokyo, Japan
19
Hawally, Block 8, Street 276, Plot 9301, Unit No 12, Floor 7, Kuwait
20
MacauShop Unit 1202 on Mezzanine Level and Shop Unit 2812 on Level 2 in Shoppes at Four Seasons, Estrada Da Baía De N. Senhora
De Esperança, S/N, Taipa, Macau
21
Unit 9.01, PJ Tower, Amcorp Trade Centre, 18, Persiaran Barat, 46050 Petaling Jaya Selangor, Malaysia
22
Edgar Allan Poe 85-B, Col. Polanco, Delg. Miguel Hidalgo, Mexico City, 11560, Mexico
23
Pieter Cornelisz. Hooftstraat 50 H, 1071CA Amsterdam, Netherlands
24
Level 20, HSBC Tower, 188 Quay Street, Auckland, 1010, New Zealand
25
First Floor, Building No. 660, Street no. 364, Al Waab, Zone No.54A, Al Marikh, Al Rayyan Municipality South, Doha, Qatar
26
459, Dosan-daero, Gangnam-gu, Seoul, Republic of Korea
27
Ulitsa Petrovka, 16, floor 3, Premise I, rooms 47-53, 127051, Moscow, Russian Federation
28
1st Floor, Building No. 7235, Al Olaya Street, 2392 Al Olya District Riyadh 12244, Kingdom of Saudi Arabia
29
391B Orchard Road, #15-02/03, Ngee Ann City, 238874, Singapore
30
Passeig de Gràcia, 56, 08007, Barcelona, Spain
31
Route de Chêne 30A, c/o L&S Trust Services SA, 1208 Genève, Switzerland
32
5F. No 451 Changchun Rd, Songshan Dist, Taipei City 10547, Taiwan
33
No.127 Office 25.03; Level 25; Gaysorn Tower; Ratchadamri Road, Lumpini Sub-District; Pathumwan District; 10330 Bangkok; Thailand
34
Reşitpaşa Mahallessi Eski Büyükdere Cad. Windowist Tower Sit. No: 26/1 Sariyer/Istanbul, Turkey
35
Dubai Design District, Premises:, 312, 313, 314 & 315, Floor: 03, Building: 08, Dubai Design District, United Arab Emirates
36
Dubai Design District, Building 8, Level 3, Unit no 314 and 315 PO Box 83916, Dubai, United Arab Emirates
37
Horseferry House, Horseferry Road, London, SW1P 2AW, United Kingdom
38
Corporation Service Company, 80 State Street, Albany, NY, 12207-2543, USA
39
Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, USA
30. 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 has 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.
Burberry Annual Report 2025/26 237

Financial Statements | Five Year Summary (UNAUDITED)
239 Burberry Annual Report 25/26
To end of year
Earnings and dividends
2022
pence
per share
2023
pence
per share
2024
pence
per share
2025
pence
per share
2026
pence
per share
Adjusted earnings/(loss) per share – diluted
1
94.0
122.5
73.9
(14.8)
15.2
Earnings/(loss) per share – diluted
97.7
126.3
73.9
(20.9)
5.9
Diluted weighted average number of ordinary shares (millions)
404.8
388.0
366.2
358.4
360.3
Dividend per share
Interim
11.6
16.5
18.3
–
–
Final
35.4
44.5
42.7
–
–
To end of year
Net cash flow
2022
£m
2023
£m
2024
£m
2025
£m
2026
£m
Adjusted profit/(loss) before tax
492
613
383
(37)
94
Adjusting items
19
21
–
(29)
(45)
Profit/(loss) before taxation
511
634
383
(66)
49
Depreciation and amortisation
313
344
379
413
375
Employee share scheme costs
16
19
16
18
21
Net finance expense
32
23
35
63
66
(Increase)/decrease in inventories
(22)
(10)
(57)
80
19
(Increase)/decrease in receivables
(5)
(17)
(32)
36
(15)
Increase/(decrease) in payables and provisions
81
(49)
(77)
(41)
37
Other non-cash items
(17)
(32)
18
23
30
Cash flow from operations
909
912
665
526
582
Net interest
(30)
(22)
(20)
(54)
(53)
Tax paid
(180)
(140)
(139)
(43)
(45)
Net cash flow from operations
699
750
506
429
484
Capital expenditure
(161)
(179)
(208)
(151)
(113)
Proceeds from disposal of non-current assets
8
32
–
12
–
Payment of lease principal and related cash flows
(206)
(210)
(235)
(225)
(230)
Free cash flow
340
393
63
65
141
Acquisitions
(10)
(6)
(19)
(2)
–
Dividends
(219)
(203)
(233)
(152)
–
Purchase of shares through share buyback
(153)
(404)
(402)
–
–
Proceeds from borrowings
–
–
–
439
75
Repayment of borrowings
–
–
–
–
(300)
Other
(4)
2
1
–
(5)
Exchange difference
7
2
(9)
(4)
(5)
Total movement in net cash
(39)
(216)
(599)
346
(94)
Net cash
1,177
961
362
708
614
1. Excludes the impact of adjusting items. Refer to note 2q for the Group’s policy on adjusting items.
Burberry Annual Report 2025/26238

Financial Statements | Five-Year Summary (UNAUDITED)
240 Burberry Annual Report 25/26
At end of year
Balance Sheet
2022
£m
2023
£m
2024
£m
2025
£m
2026
£m
Intangible assets
240
248
267
229
214
Property, plant and equipment
322
376
406
398
355
Right-of-use assets
880
950
1,013
867
748
Inventories
426
447
507
424
401
Trade and other receivables
328
359
392
357
371
Trade and other payables
(572)
(553)
(502)
(459)
(510)
Lease liabilities
(1,058)
(1,123)
(1,188)
(1,081)
(955)
Taxation (including deferred taxation)
221
229
243
269
287
Net cash
1,177
961
362
708
614
Borrowings
(298)
(298)
(299)
(738)
(511)
Other net assets
(49)
(57)
(47)
(53)
(68)
Net assets
1,617
1,539
1,154
921
946
Reconciliation of adjusted
Group ROIC
2022
£m
2023
£m
2024
£m
2025
£m
2026
£m
Adjusted operating profit
1
523
634
418
26
160
Adjusted profit effective tax rate
1,2
22.2%
22.2%
29.2%
–
42.5%
Adjusted net operating profit after tax
1,2
407
493
296
20
92
Net assets
1,617
1,539
1,154
921
946
Deduct cash net of overdrafts
(1,177)
(961)
(362)
(708)
(614)
Add back borrowings
298
298
299
738
511
Add back lease debt
1,058
1,123
1,188
1,081
955
Deduct net tax assets
(221)
(229)
(243)
(269)
(287)
Operating assets
1,575
1,770
2,036
1,763
1,511
Add back net liabilities related to adjusting items:
Deferred consideration
8
5
5
3
3
Restructuring liabilities/other
63
30
23
27
19
Adjusted operating assets
1
1,646
1,805
2,064
1,793
1,533
Average adjusted operating assets
1
1,651
1,726
1,935
1,929
1,663
Adjusted Group ROIC
1
24.6%
28.6%
15.3%
1.0%
5.5%
1. Excludes the impact of adjusting items. Refer to note 2q for the Group’s policy on adjusting items.
2. The Group’s adjusted effective tax rate for the 52 weeks to 29 March 2025 was -43%. For the purposes of the Group ROIC calculation, the UK effective tax rate of 25.0% was used.
Financial Statements | Five Year Summary (UNAUDITED)
239 Burberry Annual Report 25/26
To end of year
Earnings and dividends
2022
pence
per share
2023
pence
per share
2024
pence
per share
2025
pence
per share
2026
pence
per share
Adjusted earnings/(loss) per share – diluted
1
94.0
122.5
73.9
(14.8)
15.2
Earnings/(loss) per share – diluted
97.7
126.3
73.9
(20.9)
5.9
Diluted weighted average number of ordinary shares (millions)
404.8
388.0
366.2
358.4
360.3
Dividend per share
Interim
11.6
16.5
18.3
–
–
Final
35.4
44.5
42.7
–
–
To end of year
Net cash flow
2022
£m
2023
£m
2024
£m
2025
£m
2026
£m
Adjusted profit/(loss) before tax
492
613
383
(37)
94
Adjusting items
19
21
–
(29)
(45)
Profit/(loss) before taxation
511
634
383
(66)
49
Depreciation and amortisation
313
344
379
413
375
Employee share scheme costs
16
19
16
18
21
Net finance expense
32
23
35
63
66
(Increase)/decrease in inventories
(22)
(10)
(57)
80
19
(Increase)/decrease in receivables
(5)
(17)
(32)
36
(15)
Increase/(decrease) in payables and provisions
81
(49)
(77)
(41)
37
Other non-cash items
(17)
(32)
18
23
30
Cash flow from operations
909
912
665
526
582
Net interest
(30)
(22)
(20)
(54)
(53)
Tax paid
(180)
(140)
(139)
(43)
(45)
Net cash flow from operations
699
750
506
429
484
Capital expenditure
(161)
(179)
(208)
(151)
(113)
Proceeds from disposal of non-current assets
8
32
–
12
–
Payment of lease principal and related cash flows
(206)
(210)
(235)
(225)
(230)
Free cash flow
340
393
63
65
141
Acquisitions
(10)
(6)
(19)
(2)
–
Dividends
(219)
(203)
(233)
(152)
–
Purchase of shares through share buyback
(153)
(404)
(402)
–
–
Proceeds from borrowings
–
–
–
439
75
Repayment of borrowings
–
–
–
–
(300)
Other
(4)
2
1
–
(5)
Exchange difference
7
2
(9)
(4)
(5)
Total movement in net cash
(39)
(216)
(599)
346
(94)
Net cash
1,177
961
362
708
614
1. Excludes the impact of adjusting items. Refer to note 2q for the Group’s policy on adjusting items.
Burberry Annual Report 2025/26 239

Financial Statements | Company Balance Sheet
COMPANY BALANCE SHEET
52 weeks ended 28 March 2026
Burberry Annual Report 25/26 241
Note
As at
28 March
2026
£m
As at
29 March
2025
£m
Fixed assets
Investments in subsidiaries
D
1,650
1,630
1,650
1,630
Current assets
Trade and other receivables – amounts falling due after more than one year
E
588
623
Trade and other receivables – amounts falling due within one year
E
1
301
Derivative assets maturing within one year
–
1
Deferred tax asset
2
–
591
925
Creditors – amounts falling due within one year
F
(14)
(107)
Derivative liabilities maturing within one year
(1)
–
Borrowings
G
–
(300)
Net current assets
576
518
Total assets less current liabilities
2,226
2,148
Creditors – amounts falling due after more than one year
F
(159)
(87)
Borrowings
G
(441)
(439)
Net assets
1,626
1,622
Equity
Called up share capital
I
–
–
Share premium account
231
231
Capital reserve
1
1
Profit and loss account
1,394
1,390
Total equity
1,626
1,622
Loss for the year was £12 million (last year: loss £9 million). The Directors consider that, at 28 March 2026, £769 million (last year: £749 million)
of the profit and loss account is non-distributable.
The financial statements on pages 240 to 249 were approved and authorised for issue by the Board on 13 May 2026 and signed
on its behalf by:
Joshua Schulman Kate Ferry
Chief Executive Officer Chief Financial Officer
Burberry Annual Report 2025/26240

Financial Statements | Company Statement of Changes In Equity
COMPANY STATEMENT OF CHANGES IN EQUITY
52 weeks ended 28 March 2026
242 Burberry Annual Report 25/26
Note
Called up share
capital
£m
Share premium
account
£m
Capital reserve
£m
Profit and loss
account
£m
Total
equity
£m
Balance as at 30 March 2024
–
231
1
1,533
1,765
Loss for the year
–
–
–
(9)
(9)
Total comprehensive loss for the year
–
–
–
(9)
(9)
Employee share incentive schemes
Equity share awards
–
–
–
18
18
Dividends paid in the year
J
–
–
–
(152)
(152)
Balance as at 29 March 2025
–
231
1
1,390
1,622
Loss for the year
–
–
–
(12)
(12)
Total comprehensive loss for the year
–
–
–
(12)
(12)
Employee share incentive schemes
Equity share awards
–
–
–
21
21
Purchase of shares held by ESOP Trusts
–
–
–
(5)
(5)
Balance as at 28 March 2026
–
231
1
1,394
1,626
Financial Statements | Company Balance Sheet
COMPANY BALANCE SHEET
52 weeks ended 28 March 2026
Burberry Annual Report 25/26 241
Note
As at
28 March
2026
£m
As at
29 March
2025
£m
Fixed assets
Investments in subsidiaries
D
1,650
1,630
1,650
1,630
Current assets
Trade and other receivables – amounts falling due after more than one year
E
588
623
Trade and other receivables – amounts falling due within one year
E
1
301
Derivative assets maturing within one year
–
1
Deferred tax asset
2
–
591
925
Creditors – amounts falling due within one year
F
(14)
(107)
Derivative liabilities maturing within one year
(1)
–
Borrowings
G
–
(300)
Net current assets
576
518
Total assets less current liabilities
2,226
2,148
Creditors – amounts falling due after more than one year
F
(159)
(87)
Borrowings
G
(441)
(439)
Net assets
1,626
1,622
Equity
Called up share capital
I
–
–
Share premium account
231
231
Capital reserve
1
1
Profit and loss account
1,394
1,390
Total equity
1,626
1,622
Loss for the year was £12 million (last year: loss £9 million). The Directors consider that, at 28 March 2026, £769 million (last year: £749 million)
of the profit and loss account is non-distributable.
The financial statements on pages 240 to 249 were approved and authorised for issue by the Board on 13 May 2026 and signed
on its behalf by:
Joshua Schulman
Kate Ferry
Chief Executive Officer
Chief Financial Officer
Burberry Annual Report 2025/26 241

Financial Statements | Notes to the Company Financial Statements
Burberry Annual Report 25/26 243
A. Basis of preparation
Burberry Group plc (the Company) is the parent Company of the Burberry Group. Burberry Group plc is a public company which is
limited by shares and is listed on the London Stock Exchange. The Company’s principal business is investment and it is incorporated
and domiciled in the UK. The Company is registered in England and Wales and the address of its registered office is Horseferry House,
Horseferry Road, London, SW1P 2AW. The Company is the sponsoring entity of The Burberry Group plc ESOP Trust and The Burberry
Group plc SIP Trust (collectively known as the ESOP trusts). These financial statements have been prepared by including the ESOP trusts
within the financial statements of the Company. The purpose of the ESOP trusts is to purchase shares of the Company in order to satisfy
Group share-based payment arrangements.
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 the Company directly or indirectly. The consolidated financial statements of the Group have been prepared in
accordance with the requirements of the Companies Act 2006 and UK-adopted International Accounting Standards. These consolidated
financial statements have been prepared for public use and can be obtained at Horseferry House, Horseferry Road, London, SW1P 2AW.
The financial statements of the Company have been prepared in accordance with Financial Reporting Standard 101 ‘Reduced Disclosure
Framework’ (FRS 101). The financial statements have been prepared on a going concern basis under the historical cost convention, as
modified by derivative financial assets and derivative financial liabilities measured at fair value through profit or loss, and in accordance
with the Companies Act 2006. As permitted by Section 408 of the Companies Act 2006, the Company has not presented its own Income
Statement.
The preparation of the financial statements in conformity with FRS 101 requires the use of certain critical accounting estimates. It also
requires management to exercise judgement in applying the Company’s accounting policies (refer to note C).
Financial Reporting Standard 101 – reduced disclosure exemptions
The Company has taken advantage of the applicable disclosure exemptions permitted by FRS 101 in the financial statements, which are
summarised below:
Standard
Disclosure exemption
IFRS 2, Share-based Payments
•
para 45(b) – disclosure of number and weighted average exercise price of share
options
•
para 46-49 – disclosure of valuation techniques and inputs used for fair value
measurement of options
•
para 50-52 – disclosure of the effect of share-based payment transactions on the
entity’s profit and loss for the period.
IFRS 7, Financial Instruments: Disclosures
• Full exemption
IFRS 13, Fair Value Measurement
•
para 91-99 – disclosure of valuation techniques and inputs used for fair value
measurement of assets and liabilities
IAS 1, Presentation of the Financial Statements
• para 10(d) – statement of cash flows
• para 10(f) – a statement of financial position as at the beginning of the preceding
period when an entity applies an accounting policy retrospectively or makes a
retrospective statement of items in its financial statements, or when it reclassifies
items in its financial statements
• para 16 – statement of compliance with all IFRS
• para 38 – present comparative information in respect of paragraph 79(a)(iv) of IAS 1
• para 38A – requirement for minimum of two primary statements, including cash flow
statements
• para 38B-D – additional comparative information
• para 111 – cash flow statement information
• para 134-136 – capital management disclosures
IAS 7, Statement of Cash Flows
• Full exemption
IAS 8, Accounting Policies, Changes
in Accounting Estimates and Errors
• para 30-31 – requirement for the disclosure of information when an entity has not
applied a new IFRS that has been issued but is not yet effective
IAS 24, Related Party Disclosures
• para 17 – key management compensation
• The requirements to disclose related party transactions entered into between two
or more members of a group, provided that any subsidiary which is a party to the
transaction is wholly owned by such a member
IAS 36, Impairment of Assets
• para 134(d)-134(f) and 135(c)-135(e)
Burberry Annual Report 2025/26242

Financial Statements | Notes to the Company Financial Statements
244 Burberry Annual Report 25/26
A. Basis of preparation continued
Going concern
The Company financial statements are prepared on a going concern basis as set out in note 1 of the Group consolidated financial
statements of Burberry Group plc.
New standards, amendments and interpretations adopted in the period
There are no standards or amendments effective for the first time for the 52 weeks to 28 March 2026 that have a material impact
on the financial statements of the Company.
Standards not yet adopted
Certain new accounting standards and amendments to standards have been published that are not yet mandatory for the 52 weeks
to 28 March 2026 and have not been early adopted by the Company as set out in note 1 of the Group consolidated financial statements
of Burberry Group plc.
B. Accounting policies
The following material accounting policies have been applied in the preparation of these financial statements. These policies have been
consistently applied to all the years presented, unless otherwise stated:
Share schemes
The Group operates a number of equity-settled share-based compensation schemes under which services are received from employees
(including Executive Directors) as consideration for equity instruments of the Company. Instruments used include awards and options.
The cost of the share-based incentives is measured with reference to the fair value of the equity instruments awarded at the date of grant.
Appropriate option pricing models, including Black-Scholes, are used to determine the fair value of the option awards made.
The fair value takes into account the impact of any market performance conditions, but the impact of non-market performance conditions
is not considered in determining the fair value on the date of grant. Vesting conditions which relate to non-market conditions are allowed
for in the assumptions used for the number of share awards or options expected to vest. The estimate of the number of options expected
to vest is revised at each balance sheet date.
In some circumstances, employees may provide services in advance of the grant date. The grant date fair value is estimated for the
purpose of recognising the expense during the period between the service commencement period and the grant date.
The grant by the Company of share awards or options over its equity instruments to employees of subsidiary undertakings in the Group
is treated as a capital contribution. In the Company’s financial statements, the cost of the share-based incentives is recognised over
the vesting period of the awards as an increase in investment in subsidiary undertakings, with a corresponding increase in equity.
Where amounts are received from Group companies in relation to equity instruments granted to the employees of the subsidiary
undertaking, the amount is derecognised from investments in Group companies.
When share awards or options are exercised, they are settled either via issue of new shares in the Company, or through shares held
in the ESOP trusts, depending on the terms and conditions of the relevant scheme. For new shares issued, the proceeds received from
the exercise of share options, net of any directly attributable transaction costs, are credited to share capital and share premium accounts.
When ESOP shares are used, any difference between the exercise price and their cost is recognised in retained earnings.
Dividend distribution
Dividend distributions to Burberry Group plc’s shareholders are recognised as a liability in the year in which the dividend becomes
a committed obligation. Final dividends are recognised when they are approved by the shareholders. Interim dividends are
recognised when paid.
Investments in subsidiaries
Investments in subsidiaries are stated at cost, less any provisions to reflect impairment in value.
Impairment of investments in subsidiaries
Investments in subsidiaries are not subject to amortisation and are tested annually for impairment. An impairment loss is recognised
for the amount by which the carrying value exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value
less costs to sell and value-in-use. For the purpose of assessing impairment, assets are grouped at the lowest level for which there are
separately identifiable cash flows (cash generating units). Investments for which an impairment has been previously recognised are
reviewed for possible reversal of impairment at each reporting date.
Financial Statements | Notes to the Company Financial Statements
Burberry Annual Report 25/26 243
A. Basis of preparation
Burberry Group plc (the Company) is the parent Company of the Burberry Group. Burberry Group plc is a public company which is
limited by shares and is listed on the London Stock Exchange. The Company’s principal business is investment and it is incorporated
and domiciled in the UK. The Company is registered in England and Wales and the address of its registered office is Horseferry House,
Horseferry Road, London, SW1P 2AW. The Company is the sponsoring entity of The Burberry Group plc ESOP Trust and The Burberry
Group plc SIP Trust (collectively known as the ESOP trusts). These financial statements have been prepared by including the ESOP trusts
within the financial statements of the Company. The purpose of the ESOP trusts is to purchase shares of the Company in order to satisfy
Group share-based payment arrangements.
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 the Company directly or indirectly. The consolidated financial statements of the Group have been prepared in
accordance with the requirements of the Companies Act 2006 and UK-adopted International Accounting Standards. These consolidated
financial statements have been prepared for public use and can be obtained at Horseferry House, Horseferry Road, London, SW1P 2AW.
The financial statements of the Company have been prepared in accordance with Financial Reporting Standard 101 ‘Reduced Disclosure
Framework’ (FRS 101). The financial statements have been prepared on a going concern basis under the historical cost convention, as
modified by derivative financial assets and derivative financial liabilities measured at fair value through profit or loss, and in accordance
with the Companies Act 2006. As permitted by Section 408 of the Companies Act 2006, the Company has not presented its own Income
Statement.
The preparation of the financial statements in conformity with FRS 101 requires the use of certain critical accounting estimates. It also
requires management to exercise judgement in applying the Company’s accounting policies (refer to note C).
Financial Reporting Standard 101 – reduced disclosure exemptions
The Company has taken advantage of the applicable disclosure exemptions permitted by FRS 101 in the financial statements, which are
summarised below:
Standard
Disclosure exemption
IFRS 2, Share-based Payments
• para 45(b) – disclosure of number and weighted average exercise price of share
options
• para 46-49 – disclosure of valuation techniques and inputs used for fair value
measurement of options
• para 50-52 – disclosure of the effect of share-based payment transactions on the
entity’s profit and loss for the period.
IFRS 7, Financial Instruments: Disclosures
• Full exemption
IFRS 13, Fair Value Measurement
• para 91-99 – disclosure of valuation techniques and inputs used for fair value
measurement of assets and liabilities
IAS 1, Presentation of the Financial Statements
• para 10(d) – statement of cash flows
• para 10(f) – a statement of financial position as at the beginning of the preceding
period when an entity applies an accounting policy retrospectively or makes a
retrospective statement of items in its financial statements, or when it reclassifies
items in its financial statements
• para 16 – statement of compliance with all IFRS
• para 38 – present comparative information in respect of paragraph 79(a)(iv) of IAS 1
• para 38A – requirement for minimum of two primary statements, including cash flow
statements
• para 38B-D – additional comparative information
• para 111 – cash flow statement information
• para 134-136 – capital management disclosures
IAS 7, Statement of Cash Flows
• Full exemption
IAS 8, Accounting Policies, Changes
in Accounting Estimates and Errors
• para 30-31 – requirement for the disclosure of information when an entity has not
applied a new IFRS that has been issued but is not yet effective
IAS 24, Related Party Disclosures
• para 17 – key management compensation
• The requirements to disclose related party transactions entered into between two
or more members of a group, provided that any subsidiary which is a party to the
transaction is wholly owned by such a member
IAS 36, Impairment of Assets
• para 134(d)-134(f) and 135(c)-135(e)
Burberry Annual Report 2025/26 243

Financial Statements | Notes to the Company Financial Statements
Burberry Annual Report 25/26 245
B. Accounting policies continued
Taxation
Tax expense represents the sum of the current tax expense and the deferred tax charge.
Current tax is based on taxable profit for the year. Taxable profit differs from net profit because it excludes items of income or expense
which are taxable or deductible in other years and it further excludes items which are never taxable or deductible. The current tax liability
is calculated using tax rates which have been enacted or substantively enacted by the balance sheet date.
Deferred tax is recognised, using the liabilities method, on temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the financial statements. However, if the temporary difference arises from the initial recognition of an asset
or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable
profit or loss, and does not give rise to equal taxable and deductible temporary differences, no deferred tax will be recognised. Deferred
tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected
to apply when the related deferred income tax asset is realised or the deferred tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the
temporary differences can be utilised.
Financial instruments
A financial instrument is initially recognised at fair value on the Balance Sheet when the Company becomes a party to the contractual
provisions of the instrument. A financial asset is derecognised when the contractual rights to the cash flow expire or substantially all risks
and rewards of the asset are transferred. A financial liability is derecognised when the obligation specified in the contract is discharged,
cancelled or expires.
At initial recognition, all financial liabilities are stated at fair value. Subsequent to initial recognition, all financial liabilities are stated at
amortised cost using the effective interest rate method, except for derivatives which are held at fair value and which are classified as fair
value through profit and loss. Financial assets are classified as either amortised cost or fair value through profit and loss depending on
their cash flow characteristics. Assets with cash flows that solely represent payments of principal and interest are measured at amortised
cost. The fair value of the financial assets and liabilities held at amortised cost approximate their carrying amount due to the use of
market interest rates.
The Company classifies its instruments in the following categories:
Financial instrument category Note Classification Measurement
Cash and cash equivalents
Amortised cost
Amortised cost
Trade and other receivables
E
Amortised cost
Amortised cost
Trade and other payables
F
Other financial liabilities
Amortised cost
Borrowings
G
Other financial liabilities
Amortised cost
Equity swap contracts
Fair value through profit and loss
Fair value through profit and loss
The Company’s primary categories of financial instruments are listed below:
Cash at bank and in hand
On the Balance Sheet, cash at bank and in hand comprises cash held with banks. Cash at bank and in hand held at amortised cost
is subject to impairment testing each period end.
Trade and other receivables
Trade and other receivables are included in current assets. Trade and other receivables with maturities greater than 12 months after
the balance sheet date are classified in trade and other receivables amounts falling due after more than one year. The assessment of
maturities of loan receivables takes into consideration any intention to renew the loan, where the loan is provided under a facility which
has a maturity of more than 12 months from the balance sheet date. Most receivables are held with the objective to collect the contractual
cash flows and are therefore initially recognised at fair value and subsequently measured at amortised cost using the effective interest
rate method, less provision for impairment. A provision for the expected loss on receivables is established at inception. This is modified
when there is a change in the credit risk. The amount of the movement in the provision is recognised in the Income Statement.
Trade and other payables
Trade and other payables are included in current liabilities, except for maturities greater than 12 months after the balance sheet date.
Payables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate method.
Burberry Annual Report 2025/26244

Financial Statements | Notes to the Company Financial Statements
246 Burberry Annual Report 25/26
B. Accounting policies continued
Financial instruments continued
Borrowings
Borrowings are initially recognised at fair value, inclusive of transaction costs incurred. Borrowings are subsequently stated at amortised
cost and the difference between the proceeds (net of transaction costs) and the redemption value is recognised in the Income Statement
over the period of the borrowings using the effective interest rate method.
Derivative instruments
The Company uses equity swap contracts to economically hedge its exposure to fluctuations in the Company’s share price which impacts
the social security costs payable by Group companies in relation to share-based compensation schemes.
The equity swap contracts are initially recognised at fair value at the trade date and classified as fair value through profit and loss.
All subsequent changes in fair value are recognised in the Income Statement up to the maturity date.
Cash-settled equity swaps are classified as fair value through profit and loss.
Foreign currency translation
Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment in which the
Company operates (the functional currency). The financial statements are presented in sterling which is the Company’s functional
and presentation currency.
Transactions in foreign currencies
Transactions denominated in foreign currencies are translated into the functional currency at the exchange rate prevailing at the date
of the transaction. Monetary assets and liabilities denominated in foreign currencies, which are held at the year end, are translated into
the functional currency at the exchange rate ruling at the balance sheet date (closing rate). Exchange differences on monetary items
are recognised in the Income Statement in the period in which they arise.
Called up share capital
Called up share capital is classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown
in equity as a deduction, net of tax, from the proceeds.
Where the Company purchases its own equity share capital (treasury shares), the consideration paid, including any directly attributable
incremental costs, is deducted from equity attributable to owners of the Company until the shares are cancelled, reissued or disposed of.
Where such shares are subsequently sold or reissued, any consideration received, net of any directly attributable incremental transaction
costs and the related income tax effects, is credited to retained earnings up to the value of the consideration originally paid. Any additional
consideration received is credited to the share premium account included in equity attributable to owners of the Company.
C. Key sources of estimation uncertainty and judgements
Key sources of estimation uncertainty
Preparation of the financial statements in conformity with FRS 101 requires that management make certain estimates and assumptions
that affect the 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. In the current year, there are no key areas where estimates and assumptions
applied have a significant risk of causing a material adjustment to the carrying value of assets and liabilities. Other areas subject to
estimation uncertainty are discussed below.
Impairment of investments in subsidiaries
Investments in subsidiaries are not subject to amortisation and are tested annually for impairment. When a review for potential
impairment is conducted, the recoverable amount is determined based on the higher of an investment’s fair value less costs to sell and
value-in-use calculations prepared on the basis of management’s assumptions and estimates. Estimates are also applied as to whether
or not to reverse certain investment impairments. Management has taken the view that no impairment charge is required for the year,
given the Balance Sheet at 28 March 2026, performance during the year and the present value of future cashflows. Refer to note B for
further details of the Company’s accounting policies in relation to this area. Refer to note D for further details of investments.
Financial Statements | Notes to the Company Financial Statements
Burberry Annual Report 25/26 245
B. Accounting policies continued
Taxation
Tax expense represents the sum of the current tax expense and the deferred tax charge.
Current tax is based on taxable profit for the year. Taxable profit differs from net profit because it excludes items of income or expense
which are taxable or deductible in other years and it further excludes items which are never taxable or deductible. The current tax liability
is calculated using tax rates which have been enacted or substantively enacted by the balance sheet date.
Deferred tax is recognised, using the liabilities method, on temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the financial statements. However, if the temporary difference arises from the initial recognition of an asset
or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable
profit or loss, and does not give rise to equal taxable and deductible temporary differences, no deferred tax will be recognised. Deferred
tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected
to apply when the related deferred income tax asset is realised or the deferred tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the
temporary differences can be utilised.
Financial instruments
A financial instrument is initially recognised at fair value on the Balance Sheet when the Company becomes a party to the contractual
provisions of the instrument. A financial asset is derecognised when the contractual rights to the cash flow expire or substantially all risks
and rewards of the asset are transferred. A financial liability is derecognised when the obligation specified in the contract is discharged,
cancelled or expires.
At initial recognition, all financial liabilities are stated at fair value. Subsequent to initial recognition, all financial liabilities are stated at
amortised cost using the effective interest rate method, except for derivatives which are held at fair value and which are classified as fair
value through profit and loss. Financial assets are classified as either amortised cost or fair value through profit and loss depending on
their cash flow characteristics. Assets with cash flows that solely represent payments of principal and interest are measured at amortised
cost. The fair value of the financial assets and liabilities held at amortised cost approximate their carrying amount due to the use of
market interest rates.
The Company classifies its instruments in the following categories:
Financial instrument category
Note
Classification
Measurement
Cash and cash equivalents
Amortised cost
Amortised cost
Trade and other receivables
E
Amortised cost
Amortised cost
Trade and other payables
F
Other financial liabilities
Amortised cost
Borrowings
G
Other financial liabilities
Amortised cost
Equity swap contracts
Fair value through profit and loss
Fair value through profit and loss
The Company’s primary categories of financial instruments are listed below:
Cash at bank and in hand
On the Balance Sheet, cash at bank and in hand comprises cash held with banks. Cash at bank and in hand held at amortised cost
is subject to impairment testing each period end.
Trade and other receivables
Trade and other receivables are included in current assets. Trade and other receivables with maturities greater than 12 months after
the balance sheet date are classified in trade and other receivables amounts falling due after more than one year. The assessment of
maturities of loan receivables takes into consideration any intention to renew the loan, where the loan is provided under a facility which
has a maturity of more than 12 months from the balance sheet date. Most receivables are held with the objective to collect the contractual
cash flows and are therefore initially recognised at fair value and subsequently measured at amortised cost using the effective interest
rate method, less provision for impairment. A provision for the expected loss on receivables is established at inception. This is modified
when there is a change in the credit risk. The amount of the movement in the provision is recognised in the Income Statement.
Trade and other payables
Trade and other payables are included in current liabilities, except for maturities greater than 12 months after the balance sheet date.
Payables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate method.
Burberry Annual Report 2025/26 245

Financial Statements | Notes to the Company Financial Statements
Burberry Annual Report 25/26 247
C. Key sources of estimation uncertainty and judgements continued
Key judgements in applying the Company’s accounting policies
Judgements are those decisions made when applying accounting policies which have a significant impact on the amounts recognised
in the Company’s financial statements. Further details of the Company’s accounting policies are provided in note B. There were no key
judgements arising in the current year or prior year that have a significant impact on the amounts recognised in the Company’s financial
statements for the 52 weeks to 28 March 2026 and 29 March 2025.
D. Investments in subsidiaries
£m
As at 30 March 2024
1,572
Additions
65
Impairment charges
(7)
As at 29 March 2025
1,630
Additions
20
Impairment charges
–
As at 28 March 2026
1,650
The Company has reviewed the recoverable value of its investments to identify if there is any indication of impairment of the carrying
value. Where applicable, the value in use has been estimated using management’s best estimates of future cash generation of its
investments.
The Company has not impaired the carrying value of its investments as their cash generation in the long-term is considered sufficient
to support the carrying value. The subsidiary undertakings and investments of the Burberry Group are listed in note 29 of the Group
financial statements.
E. Trade and other receivables
As at
28 March
2026
£m
As at
29 March
2025
£m
Amounts owed by Group companies
588
622
Prepayments
–
1
Trade and other receivables – amounts falling due after more than one year
588
623
Amounts owed by Group companies
–
300
Prepayments
1
1
Trade and other receivables – amounts falling due within one year
1
301
Total trade and other receivables
589
924
All amounts owed by Group companies are interest bearing and unsecured.
Included within amounts owed by Group companies falling due after more than one year are interest bearing loans receivable of £457
million with a facility maturity date of 20 June 2030, and £131 million with a facility maturity date of 22 February 2029. The interest rates
applied to these loans are 5.75% and SONIA +0.9%, respectively.
The Company’s impairment policies and the calculation of the loss allowances under IFRS 9 are detailed in note H.
Burberry Annual Report 2025/26246

Financial Statements | Notes to the Company Financial Statements
248 Burberry Annual Report 25/26
F. Creditors
As at
28 March
2026
£m
As at
29 March
2025
£m
Amounts owed to Group companies
159
87
Creditors – amounts falling due after more than one year
159
87
As at
28 March
2026
£m
As at
29 March
2025
£m
Amounts owed to Group companies
7
99
Other payables
1
7
8
Creditors – amounts falling due within one year
14
107
Total creditors
173
194
1. Other payables comprise interest.
Amounts owed to Group companies falling due after more than one year include interest bearing loans of £159 million (last year: £87 million).
The interest rate earned is set annually and was based on SONIA/EURIBOR +0.9% at the most recent update. The loans are unsecured
with £93m repayable on 17 June 2029, and £66m repayable on 17 June 2030.
Amounts owed to Group companies falling due within one year include interest bearing loans of £nil (last year: £62 million). The interest
rate earned is set annually and was based on EURIBOR + 0.9%. The remaining amounts of £7 million are unsecured, interest free and
repayable on demand (last year: £37 million).
G. Borrowings
As at 28 March 2026 As at 29 March 2025
Maturity
Carrying value
£m
Fair value
£m
Carrying value
£m
Fair value
£m
1.125% £300m MTN Sustainability-linked bond
1
Sep 2025
–
–
300
294
5.75% £450m MTN Fixed rate bond
2
Jun 2030
441
450
439
443
Total
441
450
739
737
1. The sustainability bond was repaid in full on 22 September 2025.
2. 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. The interest rate swaps are not held in the Company.
The Company has access to the Group’s £300 million multi-currency revolving credit facility (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 28 March
2026 there were no outstanding drawings.
The Company has access to the Group’s £75 million multi-currency RCF with a syndicate of banks, originally maturing in March 2027.
During the year, the Group exercised its option to extend the facility by an additional one year to March 2028 with the consent of the
syndicate. During the current year, there was a drawdown of £75 million on the £75 million RCF, and at 28 March 2026 the outstanding
drawings was £75 million. The £75 million RCF is not held in the Company.
The Company is in compliance with the financial and other covenants within the facilities above and has been in compliance throughout
the financial period.
Financial Statements | Notes to the Company Financial Statements
Burberry Annual Report 25/26 247
C. Key sources of estimation uncertainty and judgements continued
Key judgements in applying the Company’s accounting policies
Judgements are those decisions made when applying accounting policies which have a significant impact on the amounts recognised
in the Company’s financial statements. Further details of the Company’s accounting policies are provided in note B. There were no key
judgements arising in the current year or prior year that have a significant impact on the amounts recognised in the Company’s financial
statements for the 52 weeks to 28 March 2026 and 29 March 2025.
D. Investments in subsidiaries
£m
As at 30 March 2024
1,572
Additions
65
Impairment charges
(7)
As at 29 March 2025
1,630
Additions
20
Impairment charges
–
As at 28 March 2026
1,650
The Company has reviewed the recoverable value of its investments to identify if there is any indication of impairment of the carrying
value. Where applicable, the value in use has been estimated using management’s best estimates of future cash generation of its
investments.
The Company has not impaired the carrying value of its investments as their cash generation in the long-term is considered sufficient
to support the carrying value. The subsidiary undertakings and investments of the Burberry Group are listed in note 29 of the Group
financial statements.
E. Trade and other receivables
As at
28 March
2026
£m
As at
29 March
2025
£m
Amounts owed by Group companies
588
622
Prepayments
–
1
Trade and other receivables – amounts falling due after more than one year
588
623
Amounts owed by Group companies
–
300
Prepayments
1
1
Trade and other receivables – amounts falling due within one year
1
301
Total trade and other receivables
589
924
All amounts owed by Group companies are interest bearing and unsecured.
Included within amounts owed by Group companies falling due after more than one year are interest bearing loans receivable of £457
million with a facility maturity date of 20 June 2030, and £131 million with a facility maturity date of 22 February 2029. The interest rates
applied to these loans are 5.75% and SONIA +0.9%, respectively.
The Company’s impairment policies and the calculation of the loss allowances under IFRS 9 are detailed in note H.
Burberry Annual Report 2025/26 247

Financial Statements | Notes to the Company Financial Statements
Burberry Annual Report 25/26 249
H. Credit risk
The Company’s principal financial instruments comprise cash, borrowings, trade and other receivables and trade and other payables
arising directly from operations.
Trade and other receivables
The trade and other receivables balance comprises intercompany loans with companies within the Group. These Group companies are
assessed at each reporting date as to their ability to repay outstanding balances. The amounts owed by Group companies at 28 March
2026 comprise £588 million owed by Burberry Limited (last year: £922 million owed by Burberry Limited).
The counterparty credit risk of trade and other receivables is reviewed on a regular basis and assessed for impairment as follows:
At inception the receivable is recorded net of expected 12-month credit losses. If a significant increase in the credit risk occurs during
the life, credit losses are recorded in the profit and loss account and the effective interest is calculated using the gross carrying amount
of the asset. If a loss event occurs, the effective interest is calculated using the amortised cost of the asset net of any credit losses.
The Company’s most significant debtor, Burberry Limited, is the holder of the Burberry brand and the main operating company of the
Group. Based on its liquidity and expected cash generation, the expected 12-month credit loss for Burberry Limited trade and other
receivables is not considered to be significant. As a result, no impairment has been recorded for amounts owed by Group companies
as at 28 March 2026.
Other financial assets
With respect to credit risk arising from other financial assets, which comprise cash and certain other receivables, the Company’s
exposure to credit risk arises from the default of the counterparty with a maximum exposure equal to the carrying value of these
instruments. The Company has policies that limit the amount of credit exposure to any financial institution and only deposits funds
with independently rated financial institutions with a minimum rating of ‘A’, other than where required for operational purposes.
I. Called up share capital
Allotted, called up and fully paid share capital Number £m
Ordinary shares of 0.05p (last year: 0.05p) each
As at 29 March 2025
363,816,314
0.2
Allotted on exercise of options during the year
21,092
–
As at 28 March 2026
363,837,406
0.2
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. There has been no share buy-back programme in the current period.
As at 28 March 2026, the Company held 2.8 million treasury shares (last year: 4.6 million), with a market value of £29 million (last year:
£37 million) based on the share price at the reporting date. The treasury shares held by the Company are related to the share buyback
programme completed during the 53 weeks to 2 April 2022. During the 52 weeks to 28 March 2026, 1.8 million treasury shares were
transferred to ESOP trusts (last year: 0.6 million). During the 52 weeks to 28 March 2026, no treasury shares were cancelled (last year:
none).
The cost of shares purchased by ESOP trusts have been offset against the profit and loss account, as the amounts paid reduce the profits
available for distribution by the Company. As at 28 March 2026, the cost of own shares held by ESOP trusts and offset against the profit
and loss account is £48 million (last year: £29 million). As at 28 March 2026, the ESOP trusts held 2.8 million shares (last year: 1.7 million)
in the Company, with a market value of £29 million (last year: £14 million). In the 52 weeks to 28 March 2026 the Group purchased
£5 million of ESOP shares (last year: £nil). In the 52 weeks to 28 March 2026, the ESOP trusts and the Company waived their
entitlement to dividends.
Burberry Annual Report 2025/26248

Financial Statements | Notes to the Company Financial Statements
250 Burberry Annual Report 25/26
J. Dividends
52 weeks to
28 March
2026
£m
52 weeks to
29 March
2025
£m
Prior year final dividend paid £nil per share (last year: 42.7p)
–
152
Interim dividend paid £nil per share (last year: £nil)
–
–
Total
–
152
The Directors have elected not to declare an interim or final dividend in respect of the 52 weeks to 28 March 2026 (last year: £nil).
No dividends were paid during the 52 weeks to 28 March 2026 in relation to the 52 weeks to 29 March 2025. A dividend of 42.7p per
share was paid during the 52 weeks to 29 March 2025 in relation to the 52 weeks to 30 March 2024.
K. Financial guarantees
The companies acting as guarantor to the facilities described in note G consist of Burberry Group plc, Burberry Limited, Burberry Asia
Limited, Burberry (Wholesale) Limited (US) and Burberry Limited (US). Based on the liquidity and expected cash generation of Burberry
Limited, the expected credit loss in respect of these financial guarantees, as at 28 March 2026, is not considered to be significant.
As a result, no liability has been recorded (last year: £nil).
A potential liability may arise in the future if one of the Group members defaults on these loan facilities. Each guarantor, including
Burberry Group plc, would be liable to cover the amounts outstanding, including principal and interest elements.
L. Audit fees
The Company has incurred audit fees of £0.1 million for the current year which are borne by Burberry Limited (last year: £0.1 million).
M. Employee costs
The Company has no employees and therefore no employee costs are included in these financial statements for the 52 weeks
to 28 March 2026 (last year: £nil).
Financial Statements | Notes to the Company Financial Statements
Burberry Annual Report 25/26 249
H. Credit risk
The Company’s principal financial instruments comprise cash, borrowings, trade and other receivables and trade and other payables
arising directly from operations.
Trade and other receivables
The trade and other receivables balance comprises intercompany loans with companies within the Group. These Group companies are
assessed at each reporting date as to their ability to repay outstanding balances. The amounts owed by Group companies at 28 March
2026 comprise £588 million owed by Burberry Limited (last year: £922 million owed by Burberry Limited).
The counterparty credit risk of trade and other receivables is reviewed on a regular basis and assessed for impairment as follows:
At inception the receivable is recorded net of expected 12-month credit losses. If a significant increase in the credit risk occurs during
the life, credit losses are recorded in the profit and loss account and the effective interest is calculated using the gross carrying amount
of the asset. If a loss event occurs, the effective interest is calculated using the amortised cost of the asset net of any credit losses.
The Company’s most significant debtor, Burberry Limited, is the holder of the Burberry brand and the main operating company of the
Group. Based on its liquidity and expected cash generation, the expected 12-month credit loss for Burberry Limited trade and other
receivables is not considered to be significant. As a result, no impairment has been recorded for amounts owed by Group companies
as at 28 March 2026.
Other financial assets
With respect to credit risk arising from other financial assets, which comprise cash and certain other receivables, the Company’s
exposure to credit risk arises from the default of the counterparty with a maximum exposure equal to the carrying value of these
instruments. The Company has policies that limit the amount of credit exposure to any financial institution and only deposits funds
with independently rated financial institutions with a minimum rating of ‘A’, other than where required for operational purposes.
I. Called up share capital
Allotted, called up and fully paid share capital
Number
£m
Ordinary shares of 0.05p (last year: 0.05p) each
As at 29 March 2025
363,816,314
0.2
Allotted on exercise of options during the year
21,092
–
As at 28 March 2026
363,837,406
0.2
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. There has been no share buy-back programme in the current period.
As at 28 March 2026, the Company held 2.8 million treasury shares (last year: 4.6 million), with a market value of £29 million (last year:
£37 million) based on the share price at the reporting date. The treasury shares held by the Company are related to the share buyback
programme completed during the 53 weeks to 2 April 2022. During the 52 weeks to 28 March 2026, 1.8 million treasury shares were
transferred to ESOP trusts (last year: 0.6 million). During the 52 weeks to 28 March 2026, no treasury shares were cancelled (last year:
none).
The cost of shares purchased by ESOP trusts have been offset against the profit and loss account, as the amounts paid reduce the profits
available for distribution by the Company. As at 28 March 2026, the cost of own shares held by ESOP trusts and offset against the profit
and loss account is £48 million (last year: £29 million). As at 28 March 2026, the ESOP trusts held 2.8 million shares (last year: 1.7 million)
in the Company, with a market value of £29 million (last year: £14 million). In the 52 weeks to 28 March 2026 the Group purchased
£5 million of ESOP shares (last year: £nil). In the 52 weeks to 28 March 2026, the ESOP trusts and the Company waived their
entitlement to dividends.
Burberry Annual Report 2025/26 249

SHAREHOLDER INFORMATION
Shareholder Information
General shareholder enquiries
Enquiries relating to shareholdings, such as the transfer of Shares,
change of name or address, lost share certificates or dividend
cheques, should be referred to the Company’s registrar at:
Equiniti, Highdown House, Yeoman Way, Worthing BN99 6DA
Website: www.shareview.co.uk
Telephone: +44 (0) 371 384 2839
Managing your shares online
Shareholders and employees can manage their Burberry holdings
online by registering with Shareview, a secure online platform
provided by Equiniti. Registering is simple and offers a range
ofbenefits, allowing shareholders to:
• Access shareholding information: view your share balance
anddividend history and key shareholder details in real time
• Opt for electronic communications: receive shareholder
updates, reports and notifications quickly and securely via email
• Buy and sell shares conveniently through the Equiniti share
dealing service
• Update personal details: easily update your address, contact
information or banking details to ensure smooth communication
and dividend payments
• Secure dividend payments: option to have dividends paid directly
into your bank account, avoiding lost or outdated cheques
• Vote in advance of general meetings: participate in Company
decisions by submitting your vote by proxy online in advance
Burberry encourages all shareholders to register for electronic
communications, enabling faster and more efficient information
sharing while also contributing to environmental sustainability
byreducing paper usage, which makes a valuable contribution
toreducing our global footprint.
Register at www.shareview.co.uk
American Depositary Receipts
We have a sponsored Level 1 American Depositary Receipt (ADR)
programme to enable US investors to purchase ADRs in US dollars.
Each ADR represents one Burberry ordinary share.
For queries relating to ADRs in Burberry, please use the following
contact details:
Bank of New York Mellon, Shareholder Correspondence
P.O. BOX 43006 Providence, RI 02940-3078, USA
Tel: toll free within the USA: +1 888 269 2377
Tel: international: +1 201 680 6825
Email enquiries: shrrelations@cpushareownerservices.com
Website: www.mybnymdr.com
Website
The investors section of Burberry Group plc’s website,
Burberryplc.com, contains a wide range of information including:
• Regulatory news
• Share price information
• Dividend history, share analysis and an investment calculator
• Financial results announcements
• Frequently asked questions
• Financial calendar
It is also possible to sign up to receive email alerts for RNS
newsand press releases relating to Burberry Group plc at
www.burberryplc.com/alerts.
Duplicate accounts
Shareholders who have more than one account due to
inconsistencies in account details may avoid duplicate mailings
by contacting Equiniti and requesting the amalgamation of their
Burberry share accounts.
Burberry share dealing
Burberry shares can be traded through most banks, building
societies or stockbrokers. Equiniti offers a telephone and internet
dealing service. Terms and conditions and details of commission
charges are available on request.
For telephone dealing, please telephone 0345 603 7037 between
8:00am and 4:30pm, Monday to Friday, and for internet dealing
visit www.shareview.co.uk/dealing.
Shareholders will need their reference number, which can be found
on their Burberry share certificate.
Annual General Meeting (AGM)
Our AGM will be held at 10:30am on Wednesday 15 July 2026
atBurberry’s headquarters at Horseferry House, Horseferry Road,
London SW1P 2AW. The Notice of Meeting, which includes details
of the business to be conducted at the meeting, is available
onour Company website, Burberryplc.com.
The voting results for the 2026 AGM will also be accessible
onBurberryplc.com shortly after the meeting.
Our Shareholder Privacy Notice
Please see the Shareholder Privacy Notice on https://www.
burberryplc.com/en/investors/shareholder-centre/shareholder-
privacy-notice.html for details on how Burberry collects and uses
shareholders’ personal information.
Burberry Annual Report 2025/26250

Shareholder Information
Dividend information
The ADR local payment date is approximately five business days
after the proposed dividend payment date for ordinary shareholders.
Dividends can be paid by BACS directly into a UK bank account,
with the dividend confirmation being sent to the shareholder’s
address. This is the easiest way for shareholders to receive
dividend payments and avoids the risk of lost or out-of-date
cheques. A dividend mandate form is available from Equiniti
oronline at www.shareview.co.uk/info/directdividends.
If you area UK taxpayer, please note that you are eligible for
atax-free dividend allowance in each tax year (£500 in the tax
year from 6 April 2026 to 5 April 2027). Any dividends received
above this amount will be subject to taxation. Dividends paid
onBurberry shares held within pensions and Individual Savings
Accounts (ISAs) will continue to be tax-free. Further information
can be found at www.gov.uk/tax-on-dividends.
Dividends payable in foreign currencies
Equiniti is able to pay dividends to shareholder bank accounts
inover 90 countries worldwide through the Overseas Payment
Service. An administrative fee will be deducted from each dividend
payment. Further details can be obtained from Equiniti or online at
www.shareview.co.uk/info/ops.
Dividend Reinvestment Plan (DRIP)
The DRIP enables shareholders to use their dividends to buy
further Burberry shares. Full details of the DRIP can be obtained
from Equiniti or online at www.shareview.co.uk/4/Info/Portfolio/
Default/en/Home/Shareholders/Pages/ReinvestDividends.aspx.
Electronic communication
Shareholders may at any time choose to receive all shareholder
documentation in electronic form via the internet, rather than
inpaper format. Shareholders who decide to register for this
option will receive an email each time a shareholder document
ispublished on the internet. Shareholders who wish to receive
documentation in electronic form should register online at
www.shareview.co.uk.
Equiniti offers a range of shareholder information and services
online at www.shareview.co.uk.
Financial calendar
AGM: 15 July 2026
First quarter trading update: 17 July 2026
Interim results announcement: November 2026
Third quarter trading update: January 2027
Preliminary results announcement: May 2027
Registered office
Burberry Group plc
Horseferry House
Horseferry Road
London SW1P 2AW
Registered in England and Wales
Registered number 03458224
ShareGift
Shareholders with a small number of shares, the value of which
makes them uneconomical to sell, may wish to consider donating
their shares to charity through ShareGift, a donation scheme
operated by The Orr Mackintosh Foundation. AShareGift donation
form can be obtained from Equiniti. Furtherinformation is available
at www.sharegift.org orbytelephone on 020 7930 3737.
Tips on protecting your information
• Keep any documentation that contains your shareholder reference
number in a safe place and shred any unwanted documentation
• Inform our registrar, Equiniti, promptly when you change address
• Be aware of dividend payment dates and contact Equiniti if
youdo not receive your dividend cheque or, better still, make
arrangements to have the dividend paid directly into your
bankaccount
• Consider holding your shares electronically in a CREST account
via a nominee
Unauthorised brokers (boiler room scams)
Shareholders are advised to be very wary of any unsolicited advice,
offers to buy shares at a discount or offers of free company reports.
These are typically from overseas-based ‘brokers’ who target
UKshareholders, offering to sell them whatoften turn out to
beworthless or high-risk shares. Theseoperations are commonly
known as boiler rooms. If you receive any unsolicited investment
advice, obtain the correct name of the person and organisation,
and check that they areproperly authorised by theFinancial
Conduct Authority (FCA)before getting involved. Thiscan be
done by visiting www.fca.org.uk/register/.
If you deal with an unauthorised firm, you will not be eligible
toreceive payment under the Financial Services Compensation
Scheme if things go wrong. If you think you have been approached
by an unauthorised firm, you should contact the FCA consumer
helpline on 0800 111 6768 from the UK, or +44 20 7066 1000 from
outside the UK. More detailed information can be found on the
FCA website at www.fca.org.uk/consumers/protect-yourself/
unauthorised-firms.
Burberry Annual Report 2025/26 251

Disclaimer: The purpose of this Annual Report is to provide information to the members of Burberry Group plc. This document contains certain statements with respect
tothe operations, performance and financial condition of the Group, including among other things, statements about expected revenues, margins, earnings per share
orother financial or other measures. Forward-looking statements appear in a number of places throughout this document and include statements regarding ourintentions,
beliefs or current expectations and those of our officers, Directors and employees concerning, among other things, our results of operations, financial condition,
liquidity,prospects, growth, strategies, the business we operate and climate change, nature, circular economy and broader sustainability-related targets and activities.
Forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such
as“aim”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “objective”, “outlook”, “plan”, “target”, “will” and similar words and expressions. These statements
inherently involve uncertainty and are subject to a number of risks since future events and circumstances can cause actual results and developments to differ materially
from those anticipated and may not entirely be within our control. These uncertainties and risks include, without limitation: changes in global, political, economic,
business, competitive and market forces or conditions, or in foreign exchange and interest rates; changes in environmental, geopolitical, social or physical risks; legal,
regulatory and policy developments, including climate and sustainability-related standards, interpretations and regulatory measures; the impacts of climate change
andsustainability-related issues; risks arising out of health crises and pandemics; risks of cyberattacks and IT incidents; changes in tax rates or policy; changes in global
consumer demand; future business combinations or dispositions; and other factors specific to the Group, including those described in the Risk and Viability Report
onpages 95 to 105 of this Annual Report. Readers should not place undue reliance on forward-looking statements. The forward-looking statements reflect knowledge
and information available at the date of the particular statement and unless otherwise required by applicable law the Company undertakes no obligation to update
orrevise these forward-looking statements.
Nothing in this document should be construed as a profit forecast or as implying that the earnings of the Group for the current year or future years will necessarily match
or exceed historical or published earnings of the Group. Past performance cannot be relied on as a guide to future performance.
All members, wherever located, should consult any additional disclosures that the Company may make in any regulatory announcements or documents which it publishes.
References to the Burberry website or to other websites in this document are included for convenience only and, unless expressly stated otherwise, information on those
websites is not incorporated into, and does not form part of, this document. The Company and its Directors accept no liability to third parties in respect of this document
save as would arise under the law of England and Wales. This document does not constitute an offer, invitation, solicitation, advice or recommendation to buy, sell, underwrite,
subscribe for or otherwise acquire or dispose of any securities or financial instruments, including Burberry Group plc shares, in the UK, the USA, or any other jurisdiction,
including under the US Securities Act 1933, as amended.
The report is printed in the UK by Pureprint, a certified Carbon Neutral company. Pages 1–252 are produced using Revive 100% Offset,
whilethe cover is printed on Mohawk Options 100% PC White Smooth. Both selected materials are made from 100% post-consumer waste,
reinforcing our commitment to environmental sustainability. The manufacturing mills and printer are registered under the Environmental
Management System ISO14001 and are Forest Stewardship Council
®
(FSC
®
) chain-of-custody certified ensuring responsible sourcing
andsustainable production.

www.Burberryplc.com