Return to Comparable Sales Growth
Company returned to positive comparable sales, with sequential momentum through the year and Q4 comparable sales up 5%. Greater China and the Americas each delivered double-digit Q4 comps of +10%.
Material Gross Margin Expansion
Gross margin improved to 67.9%, up 530 basis points at constant exchange rates (driven by decisive inventory reset and higher full-price sell-through).
Significant Operating Profit Recovery
Adjusted operating profit rose to GBP 160 million from GBP 26 million last year, with adjusted operating profit margin expanding to 6.6%.
Improved Cash Generation and Deleveraging
Free cash flow improved to GBP 141 million (from GBP 65 million prior year); cash generated from operations increased to GBP 582 million (up GBP 56 million). Net debt to adjusted EBITDA reduced to 1.6x from 2.3x a year earlier.
Cost Savings Delivery
Delivered GBP 80 million of cost savings in FY26 and on track to deliver GBP 100 million of annualized savings by FY27 (GBP 20 million remaining).
Channel & Product Momentum
E-commerce accelerated (up in the high teens in Q4). Hero categories scarves and outerwear outperformed (double-digit growth in H2). Leather goods and ready-to-wear showed sequential improvement and early green shoots.
Brand and Marketing Impact
Portraits of an Icon and other campaigns drove a triple-digit increase in earned engagement versus last year and double-digit increases in earned media value and press; efforts helped recruit Gen Z customers (double-digit Gen Z growth in China).
Operational and Strategic Investments
Rolled out over 200 scarf bars (exceeding plan) and ~100 polo fixtures launching; commenced two-year renovation of Castleford factory; piloted AI-enabled planning and clienteling with positive impact in Q4.
Encouraging Wholesale Improvement in H2
Wholesale revenue declined 4% for the year but improved in the second half (+3% H2), signaling renewed confidence from key wholesale partners and mid-single-digit H1 wholesale guidance for FY27.
Clear FY27 Guidance and Financial Targets
Outlook: expect revenue growth and margin expansion in FY27; retail space broadly stable; capex ~GBP 120 million; currency expected to be ~GBP 10 million headwind to revenue and adjusted operating profit; effective tax rate 27–30%.