Burberry Group (BURBY)
OTHER OTC:BURBY
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Burberry Group
(OTC:BURBY)
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Rating:50Neutral
Price Target:
$14.50
▼(-8.46% Downside)
Action:Reiterated
Date:05/19/26
The score is held back most by weak recent financial performance (profitability compression and higher leverage than prior years) and bearish technicals (trading below major moving averages with negative MACD). These are partly offset by a positive earnings-call-driven turnaround narrative (margin expansion, improved free cash flow, deleveraging) but valuation remains a major risk given the very high P/E and no dividend yield provided.
Positive Factors
Gross margin expansion
A 530bp gross margin uplift to 67.9% reflects inventory reset and higher full‑price sell‑through. This improves structural profitability by shifting mix toward higher‑quality products and reducing discount dependence, supporting sustainable margin recovery and pricing power.
Negative Factors
Choppy revenue and profit history
Revenue volatility across recent years and the swing from healthy profits to near‑breakeven undermines predictability for margins and capital planning. Persistent cyclicality raises execution risk for meeting medium‑term sales and margin targets despite operational fixes.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross margin expansion
A 530bp gross margin uplift to 67.9% reflects inventory reset and higher full‑price sell‑through. This improves structural profitability by shifting mix toward higher‑quality products and reducing discount dependence, supporting sustainable margin recovery and pricing power.
Read all positive factors
Burberry Group (BURBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.19B
Dividend YieldN/A
Average Volume (3M)3.49K
Price to Earnings (P/E)186.7
Beta (1Y)1.64
Revenue Growth3.33%
EPS GrowthN/A
CountryUS
Employees9,336
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.07
Shares Outstanding361,005,520
10 Day Avg. Volume0
30 Day Avg. Volume3,490
Financial Highlights & Ratios
PEG Ratio-1.46
Price to Book (P/B)4.24
Price to Sales (P/S)1.62
P/FCF Ratio9.54
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue1.99
Enterprise Value/Gross Profit3.64
Enterprise Value/Ebitda9.40
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.52
Revenue Forecast (FY)$3.43B
Burberry Group Business Overview & Revenue Model
Company Description
Burberry Group plc is a British luxury fashion house established in 1856, renowned for its distinctive tartan pattern and signature trench coats. The company operates primarily in the luxury goods sector, offering a wide range of products includin...
How the Company Makes Money
Burberry primarily makes money by selling Burberry-branded luxury products through multiple channels. The largest revenue stream is typically direct-to-consumer sales, where Burberry sells products at full retail value through its own physical bou...
Burberry Group Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call emphasized a clear operational turnaround: comparable sales recovery, sizeable gross margin expansion (+530 bps to 67.9%), a meaningful increase in adjusted operating profit (GBP 160m versus GBP 26m), stronger free cash flow and reduced leverage (net debt/EBITDA 1.6x). Brand and category momentum (scarves, outerwear), successful marketing campaigns, e-commerce acceleration and delivered cost savings underpin confidence. Headwinds include a reported revenue decline (-2%), annual wholesale (-4%) and licensing (-9%) weakness, traffic/tourism pressures in some regions (Japan, parts of EMEA), modest AUR pressure and expected one-off restructuring costs (~GBP 5m in FY '27). On balance, the positive financial improvements, operational momentum and deleveraging outweigh the remaining challenges, and management is positioned to invest for further growth while targeting continued margin expansion.Positive Updates
Return to Comparable Sales Growth
Comparable retail sales returned to growth: +2% for FY '26 with sequential momentum and a Q4 comp of +5%. Greater China and the Americas each delivered double-digit Q4 comps of +10%.
Negative Updates
Reported Revenue Slightly Down
Total revenue was stable at constant exchange rates but declined 2% on a reported basis for FY '26.
Read all updates
Q4-2026 Updates
Positive
Negative
Return to Comparable Sales Growth
Comparable retail sales returned to growth: +2% for FY '26 with sequential momentum and a Q4 comp of +5%. Greater China and the Americas each delivered double-digit Q4 comps of +10%.
Read all positive updates
Company Guidance
Management guided that FY‑27 should deliver revenue growth and margin expansion, while flagging macro/geopolitical uncertainty; key modeling cues are: retail space broadly stable, wholesale expected to grow mid‑single‑digit % in H1, annualized cost savings of c. GBP 100m by FY‑27 (GBP 80m delivered in FY‑26) with FY‑27 adjusting items of ~GBP 5m (total one‑offs ~GBP 50m), capital expenditure c. GBP 120m, and a currency headwind of c. GBP 10m to both revenue and adjusted operating profit; the effective tax rate is guided at 27–30%. Management reiterated medium‑term ambitions of returning to ~GBP 3bn sales with c. 70% gross margin and high‑teens operating margin; FY‑26 financial anchors to note are gross margin 67.9% (+530bps), adjusted operating profit GBP 160m, adjusted EPS 15.2p, free cash flow GBP 141m and net debt/adjusted EBITDA 1.6x (vs 2.3x a year ago).Burberry Group Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
46
Neutral
Cash Flow
63
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.46B | 2.46B | 2.97B | 3.09B | 2.83B |
| Gross Profit | 1.29B | 1.54B | 2.01B | 1.84B | 1.68B |
| EBITDA | 533.54M | 428.00M | 522.00M | 1.01B | 855.00M |
| Net Income | 21.34M | -75.00M | 270.00M | 490.00M | 396.00M |
Balance Sheet | |||||
| Total Assets | 3.09B | 3.43B | 3.37B | 3.69B | 3.70B |
| Cash, Cash Equivalents and Short-Term Investments | 671.03M | 813.00M | 441.00M | 1.03B | 1.22B |
| Total Debt | 1.52B | 1.92B | 1.57B | 1.49B | 1.40B |
| Total Liabilities | 2.15B | 2.51B | 2.22B | 2.15B | 2.08B |
| Stockholders Equity | 940.05M | 914.00M | 1.15B | 1.53B | 1.61B |
Cash Flow | |||||
| Free Cash Flow | 417.68M | 278.00M | 294.00M | 571.00M | 534.00M |
| Operating Cash Flow | 491.87M | 429.00M | 506.00M | 750.00M | 699.00M |
| Investing Cash Flow | -115.85M | -127.00M | -231.00M | -153.00M | -167.00M |
| Financing Cash Flow | -466.46M | 48.00M | -865.00M | -815.00M | -578.00M |
Burberry Group Technical Analysis
Negative
15.84
Price Trends
15.00
Negative
15.65
Negative
15.86
Negative
Market Momentum
-0.12
Positive
45.77
Neutral
14.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BURBY, the sentiment is Negative. The current price of 15.84 is above the 20-day moving average (MA) of 15.62, above the 50-day MA of 15.00, and below the 200-day MA of 15.86, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 45.77 is Neutral, neither overbought nor oversold. The STOCH value of 14.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BURBY.
Burberry Group Peers Comparison
UnderperformOutperform
Sector (61)
BURBY
Burberry Group
14.97
0.96
6.87%
TPR
Tapestry
131.63
50.29
61.82%
CPRI
Capri Holdings
17.10
-1.12
-6.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.