Burberry Group (BURBY)
OTHER OTC:BURBY
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Burberry Group
(OTC:BURBY)
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Rating:53Neutral
Price Target:
$14.50
▼(-8.46% Downside)
Action:ReiteratedDate:11/15/25
Burberry's overall stock score reflects significant financial challenges and valuation concerns, with a negative P/E ratio and declining revenues. While the earnings call provided some optimism with strategic advancements and improved gross margins, the technical analysis indicates mixed signals, and the absence of a dividend yield further impacts the score. The company needs to address its operational and leverage issues to improve its financial health and investor appeal.
Positive Factors
Gross margin expansion
A 410bp gross margin improvement to 67.9% reflects stronger product mix, pricing power and much healthier inventory. Sustained higher gross margins support long-term profitability, free cash flow generation and provide buffer while top-line recovery and restructuring take effect.
Negative Factors
Declining revenue trend
A sustained top-line decline (H1 revenue -3% constant FX and inter-year revenue drop) undermines fixed-cost absorption and slows margin recovery. Persistent revenue weakness pressures investment capacity and makes achievement of savings and margin targets more challenging over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross margin expansion
A 410bp gross margin improvement to 67.9% reflects stronger product mix, pricing power and much healthier inventory. Sustained higher gross margins support long-term profitability, free cash flow generation and provide buffer while top-line recovery and restructuring take effect.
Read all positive factors
Burberry Group (BURBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.14B
Dividend YieldN/A
Average Volume (3M)3.49K
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue Growth-6.85%
EPS Growth-178.60%
CountryUS
Employees9,336
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)<0.01
Shares Outstanding360,999,180
10 Day Avg. Volume0
30 Day Avg. Volume3,490
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)3.03
Price to Sales (P/S)1.13
P/FCF Ratio9.97
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue2.05
Enterprise Value/Gross Profit3.48
Enterprise Value/Ebitda17.07
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.53
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:Nov 13, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted Burberry's strategic advancements and positive market reactions, particularly in returning to comp sales growth and gross margin improvement. However, challenges remain with overall revenue decline, particularly in wholesale and licensing segments, and ongoing traffic issues in stores. The sentiment is cautiously optimistic as the company sees positive indicators in customer growth and market confidence, but still faces significant hurdles.Positive Updates
Return to Comp Sales Growth
In Q2, Burberry returned its retail business to comparable sales growth for the first time in 2 years, indicating a positive shift in consumer engagement and market performance.
Negative Updates
Overall Revenue Decline
Total revenue for the first half declined by 3% at constant exchange rates, or 5% on a reported basis, primarily due to declines in wholesale and licensing revenue.
Read all updates
Q2-2026 Updates
Positive
Negative
Return to Comp Sales Growth
In Q2, Burberry returned its retail business to comparable sales growth for the first time in 2 years, indicating a positive shift in consumer engagement and market performance.
Read all positive updates
Company Guidance
During the call, Burberry's CEO Joshua Schulman and CFO Kate Ferry provided detailed guidance and updates on the Burberry Forward strategy and financial performance. In the first half of fiscal year 2026, Burberry achieved a 2% growth in comparable retail sales in Q2, marking the first positive comp growth in two years. Total revenue was GBP 1.03 billion, with an adjusted operating profit of GBP 19 million. The company reported a free cash outflow of GBP 50 million, an improvement from the previous year. Gross margin improved by 410 basis points to 67.9%, driven by a healthier inventory position, with net inventory down 24% year-on-year. Burberry is on track to deliver GBP 80 million in annualized savings by the year's end, following an expanded restructuring program. The company expects no changes to its full-year guidance, with a continued focus on margin improvement, productivity, and cash flow. Retail space is anticipated to remain flat, with annualized savings of GBP 80 million and a GBP 50 million restructuring charge. Wholesale revenue is expected to decline mid-single digits for the full year, with a return to growth in the second half. Capital expenditure is projected at GBP 120 million, slightly below initial guidance. Currency headwinds of GBP 50 million on revenue and GBP 5 million on operating profit are anticipated based on October spot rates.Burberry Group Financial Statement Overview
Summary
Income Statement
40
Negative
Balance Sheet
55
Neutral
Cash Flow
65
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.40B | 2.46B | 2.97B | 3.09B | 2.83B | 2.34B |
| Gross Profit | 1.42B | 1.54B | 2.01B | 1.84B | 1.68B | 1.37B |
| EBITDA | 288.57M | 428.00M | 522.00M | 1.01B | 855.00M | 797.70M |
| Net Income | -27.00M | -75.00M | 270.00M | 490.00M | 396.00M | 376.00M |
Balance Sheet | ||||||
| Total Assets | 3.00B | 3.43B | 3.37B | 3.69B | 3.70B | 3.50B |
| Cash, Cash Equivalents and Short-Term Investments | 452.00M | 813.00M | 441.00M | 1.03B | 1.22B | 1.26B |
| Total Debt | 1.55B | 1.92B | 1.57B | 1.49B | 1.40B | 1.36B |
| Total Liabilities | 2.11B | 2.51B | 2.22B | 2.15B | 2.08B | 1.94B |
| Stockholders Equity | 892.00M | 914.00M | 1.15B | 1.53B | 1.61B | 1.56B |
Cash Flow | ||||||
| Free Cash Flow | 463.81M | 278.00M | 294.00M | 571.00M | 534.00M | 473.70M |
| Operating Cash Flow | 538.76M | 429.00M | 506.00M | 750.00M | 699.00M | 591.40M |
| Investing Cash Flow | -98.00M | -127.00M | -231.00M | -153.00M | -167.00M | -93.10M |
| Financing Cash Flow | -331.00M | 48.00M | -865.00M | -815.00M | -578.00M | -156.50M |
Burberry Group Technical Analysis
Negative
15.84
Price Trends
14.98
Negative
15.78
Negative
16.01
Negative
Market Momentum
-0.20
Negative
46.02
Neutral
71.18
Neutral
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 14.06, above the 50-day MA of 14.98, and below the 200-day MA of 16.01, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 71.18 is Neutral, 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)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $28.39B | 11.94 | 63.26% | 1.16% | 8.14% | -65.04% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $5.14B | -40.72 | -2.99% | ― | -6.85% | -178.60% | |
51 Neutral | $2.19B | 6.45 | -244.66% | ― | -17.66% | -223.06% |
* Consumer Cyclical Sector Average
BURBY
Burberry Group
14.17
5.68
66.99%
TPR
Tapestry
140.20
80.46
134.70%
CPRI
Capri Holdings
18.42
5.94
47.60%
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.