Burberry Group (BURBY) AI Stock Analysis

• Market Cap: $5.96B
• Dividend Yield: 4.56%
• Average Volume (3M): 6.62K
• Price to Earnings (P/E): 85.3
• Beta (1Y): 1.43
• Revenue Growth: -15.84%
• EPS Growth: -129.00%
• Country: US
• Employees: 9,336
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Luxury Goods
• EPS (TTM): 0.04
• Shares Outstanding: 359,178,560
• 10 Day Avg. Volume: 5,698
• 30 Day Avg. Volume: 6,615
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 2.10
• Enterprise Value/Gross Profit: 3.36
• Enterprise Value/Ebitda: 37.19
• 1Y Price Target: $19.00
• Price Target Upside: 14.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: $19.00 ▲(14.53% Upside)

The overall stock score for Burberry Group is primarily impacted by its financial challenges and valuation concerns. While technical indicators are bullish, suggesting potential near-term price strength, the company's negative earnings and high leverage present significant risks. Investors should be cautious due to the overbought technical indicators and financial instability.

Burberry Group Business Overview & Revenue Model

Company Description

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. The company operates in two segments, Retail/Wholesale and Licensing. It provides womenswear, menswear, childrenswear, beauty, eyewear, shoes, and accessories, as well as leather goods, such as bags. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. Burberry Group plc sells its products through Burberry mainline stores, concessions, outlets, digital commerce, Burberry franchisees, department stores, and multi-brand specialty accounts, as well as through Burberry.com website. As of April 2, 2022, the company operated 218 stores, 143 concession stores, 57 outlets, and 38 franchise stores. It operates in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. Burberry Group plc was founded in 1856 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Burberry generates revenue through several key streams, primarily from the sale of luxury fashion items and accessories through its retail and wholesale channels. The company operates a network of retail stores, online platforms, and concessions within department stores. A significant portion of its revenue comes from direct-to-consumer sales, particularly through flagship stores in major cities and e-commerce platforms. Additionally, Burberry engages in strategic partnerships and collaborations with other luxury brands and influencers, enhancing its market presence and brand visibility. The company's focus on digital marketing and customer engagement initiatives also plays a vital role in attracting high-spending customers, contributing to its overall earnings.

Burberry Group Financial Statement Overview

Summary

Burberry Group faces significant financial challenges with declining revenues and profitability issues. The income statement shows a declining trend with a net loss in 2025. The balance sheet indicates high leverage and financial risk, although cash flow generation is relatively strong despite reduced free cash flow.

Income Statement

The income statement shows a declining trend with revenue dropping from 2024 to 2025. The gross profit margin decreased, and a net loss was recorded in 2025, indicating profitability challenges. EBIT margin turned negative, further highlighting operational issues. A major concern is the significant decline in revenue and profitability compared to previous years.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, which indicates significant leverage and potential financial risk. The equity ratio decreased as stockholders' equity reduced. However, the company maintains a reasonable level of cash and short-term investments, providing some liquidity cushion. ROE turned negative in 2025, showing challenges in generating returns for shareholders.

Cash Flow

The cash flow statement shows a decline in operating cash flow compared to previous years. Free cash flow remains positive but dropped from 2024 to 2025, indicating less cash available after capital expenditures. The operating cash flow to net income ratio is notably high due to the net loss, suggesting operational cash inflow despite profitability challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.46B	2.46B	2.97B	3.09B	2.83B	2.34B
Gross Profit	1.54B	1.54B	2.01B	1.84B	1.68B	1.37B
EBITDA	139.00M	428.00M	522.00M	1.01B	855.00M	693.10M
Net Income	-75.00M	-75.00M	270.00M	490.00M	396.00M	376.00M
Balance Sheet
Total Assets	3.43B	3.43B	3.37B	3.69B	3.70B	3.50B
Cash, Cash Equivalents and Short-Term Investments	813.00M	813.00M	441.00M	1.03B	1.22B	1.26B
Total Debt	1.92B	1.92B	1.57B	1.49B	1.40B	1.36B
Total Liabilities	2.51B	2.51B	2.22B	2.15B	2.08B	1.94B
Stockholders Equity	914.00M	914.00M	1.15B	1.53B	1.61B	1.56B
Cash Flow
Free Cash Flow	307.00M	278.00M	294.00M	571.00M	534.00M	473.70M
Operating Cash Flow	429.00M	429.00M	506.00M	750.00M	699.00M	591.40M
Investing Cash Flow	-127.00M	-127.00M	-231.00M	-153.00M	-167.00M	-93.10M
Financing Cash Flow	48.00M	48.00M	-865.00M	-815.00M	-578.00M	-156.50M

Burberry Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.59
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BURBY, the sentiment is Neutral. The current price of 16.59 is above the 20-day moving average (MA) of 16.23, below the 50-day MA of 16.70, and above the 200-day MA of 13.35, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 50.12 is Neutral, neither overbought nor oversold. The STOCH value of 26.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BURBY.

Burberry Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIG	75 Outperform	$3.73B	30.38	6.82%	1.30%	-1.63%	-72.22%
LUXE	63 Neutral	$829.64M	―	-8.75%	―	7.08%	-42.22%
Sector *	61 Neutral	$17.97B	12.87	-5.30%	2.97%	1.26%	-14.45%
TPR	60 Neutral	$22.02B	128.52	9.76%	1.39%	5.09%	-80.06%
BURBY	56 Neutral	$5.96B	85.32	-7.31%	4.56%	-15.84%	-129.00%
CPRI	49 Neutral	$2.59B	―	-142.38%	―	-16.69%	-279.61%
LANV	41 Neutral	$288.47M	―	-2353.49%	―	-23.54%	-49.41%