Burberry (BRBY) AI Stock Analysis

• Market Cap: £3.63B
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -9.44%
• EPS Growth: -170.53%
• Country: UK
• Employees: 9,336
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): <0.01
• Shares Outstanding: 360,997,800
• 10 Day Avg. Volume: 1,197,363
• 30 Day Avg. Volume: 1,721,769
• PEG Ratio: 0.29
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 9.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £1,393.75
• Price Target Upside: 37.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.21
• Revenue Forecast (FY): £2.43B

• Rating: 55 Neutral
• Price Target: 1,040.00 p ▲(2.51% Upside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

Burberry's overall stock score reflects significant financial challenges, with declining revenue and profitability issues being the most impactful factors. Positive developments from the earnings call, such as sales growth and cost-saving measures, provide some optimism. Technical analysis and valuation present mixed signals, with potential bearish momentum and unattractive valuation metrics.

Positive Factors

Gross margin & inventory

A 410bp gross margin uplift and a 24% reduction in net inventory materially improve margin sustainability by lowering markdown risk and clearing slow stock. This supports long-term pricing power and reduces working-capital drag, helping margins persist even if sales recover slowly.

Restructuring & cost savings

GBP 80m of annualized savings increases operating leverage and reduces fixed-cost intensity, a structural improvement to the cost base. Sustained savings enhance break-even economics, giving management more runway to invest in product and channels while protecting margins during revenue volatility.

Cash generation & liquidity

Operating cash flow remains robust relative to reported losses, and the business stays cash-flow positive, providing a durable liquidity cushion. This supports ongoing restructuring, inventory resets and investment in digital/retail without immediate refinancing pressure, bolstering resilience.

Negative Factors

Revenue decline & profitability

A roughly 17% revenue drop coupled with negative net income and a -3.05% margin shows structural demand and profitability challenges. Persistent top-line weakness limits operating leverage and hinders the company's ability to restore sustainable net profitability without sustained revenue recovery.

Rising leverage

Higher leverage (D/E 2.10) and a lower equity ratio raise financial rigidity, increasing interest and covenant risks if margins stay weak. Elevated liabilities limit strategic flexibility for product investment or store initiatives and make the company more sensitive to cyclical shocks.

Wholesale, licensing & retail traffic weakness

Declines in wholesale (-11%) and licensing (-8%), alongside ongoing weak retail traffic, indicate multi-channel demand erosion. This weakens revenue diversification, pressuring volume-driven categories and slowing brand-led recovery; if persistent, it undermines scale benefits and margin recovery.

Burberry 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 primarily generates revenue from selling luxury goods under its brand through multiple channels. The core revenue stream is retail (direct-to-consumer), which includes sales through Burberry-operated physical stores and its e-commerce/digital platforms; in this model, Burberry captures the full selling price (net of returns, discounts, and taxes where applicable) and bears the operating costs of stores, staffing, logistics, and marketing. A second revenue stream is wholesale, where Burberry sells products to third-party retailers (such as department stores and specialty luxury retailers) at wholesale prices; these partners then resell to end consumers, and Burberry’s earnings depend on wholesale volumes, product mix, and terms with accounts. Burberry may also generate revenue through licensing arrangements (where third parties produce and/or distribute certain Burberry-branded products in exchange for royalties and/or license fees); if specific current categories or scale are not publicly available in the provided context, they are null. Additional factors that typically influence Burberry’s earnings include global demand for luxury goods, brand positioning and pricing power, product mix (e.g., higher-margin leather goods and accessories versus apparel), performance in key geographic markets (including tourist spend), and currency movements given its international sales. Significant partnerships contributing to revenue are primarily its wholesale relationships and any licensing partners, while marketing, runway/brand campaigns, and controlled distribution strategy support demand and margin over time; details of specific named partners not confirmed here are null.

Burberry Financial Statement Overview

Summary

Burberry's financial performance is challenged by declining revenue and negative net income, with a net profit margin of -3.05%. Despite a strong gross profit margin of 62.5%, the company faces profitability issues and increased leverage, as indicated by a debt-to-equity ratio of 2.10. Cash flow remains positive, providing some operational flexibility.

Income Statement

Burberry's income statement reflects significant challenges, as evidenced by declining revenue and negative net income in the most recent period. The gross profit margin remains relatively strong at 62.5% for 2025, indicating effective cost management at the gross level. However, the net profit margin is concerning at -3.05%, highlighting profitability issues. Revenue has decreased by approximately 17% from the previous year, indicating a downward trajectory in sales.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio rising to 2.10 in 2025, suggesting increased leverage. The equity ratio has decreased to 26.68%, indicating a higher reliance on liabilities. Nonetheless, the company maintains a substantial cash position relative to its liabilities, providing some liquidity cushion. Return on Equity is negative due to the net loss, reflecting underperformance in generating profits from shareholder equity.

Cash Flow

Cash flow statements reveal a decrease in free cash flow from the previous year, although the company remains cash flow positive with a free cash flow to net income ratio being not applicable due to negative net income. Operating cash flow is robust relative to net income, suggesting that the company generates cash effectively despite profitability challenges. The reduction in capital expenditure demonstrates cautious investment, reflecting efforts to conserve cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.41B	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	289.00M	428.00M	816.00M	1.02B	858.00M	800.20M
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	464.00M	278.00M	294.00M	571.00M	534.00M	473.70M
Operating Cash Flow	539.00M	429.00M	506.00M	750.00M	699.00M	591.40M
Investing Cash Flow	-100.00M	-127.00M	-231.00M	-153.00M	-167.00M	-93.10M
Financing Cash Flow	-332.00M	48.00M	-865.00M	-815.00M	-578.00M	-156.50M

Burberry Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1014.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BRBY, the sentiment is Negative. The current price of 1014.5 is below the 20-day moving average (MA) of 1094.58, below the 50-day MA of 1155.68, and below the 200-day MA of 1195.91, indicating a bearish trend. The MACD of -41.18 indicates Positive momentum. The RSI at 33.35 is Neutral, neither overbought nor oversold. The STOCH value of 18.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BRBY.

Burberry Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WOSG	79 Outperform	£1.04B	5.13	12.32%	―	9.64%	71.55%
FRAS	73 Outperform	£2.67B	2.38	21.64%	―	-6.43%	52.93%
DOCS	64 Neutral	£607.51M	-23.98	4.61%	3.36%	-2.59%	-46.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MKS	61 Neutral	£6.69B	298.74	0.69%	1.18%	14.13%	-96.12%
BRBY	55 Neutral	£3.63B	-40.23	-2.99%	―	-9.44%	-170.53%
MUL	52 Neutral	£70.16M	-2.45	370.62%	―	-15.13%	48.56%

Burberry Corporate Events

Burberry Non-Executive Director Stella King Increases Stake With Share Purchase

Burberry disclosed that non-executive director Stella King purchased 608 ordinary shares in the company on 20 March 2026 at a price of about 1,024.357 pence per share. The director dealing, carried out on the London Stock Exchange, represents an investment of roughly £6,228 and signals additional personal financial commitment from a board member, a move often watched by investors as a potential indicator of confidence in the company’s prospects.

The most recent analyst rating on (GB:BRBY) stock is a Hold with a £1033.00 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Burberry Issues New Shares Under Employee Sharesave Scheme

Burberry Group plc has issued and allotted 5,857 new ordinary shares of 0.05 pence each between 22 January and 19 March 2026 under its Sharesave Plan, following a prior issue of 13,365 shares under the same employee scheme between September 2025 and January 2026. The shares, admitted under an existing 2020 block listing on the London Stock Exchange, bring the total number of ordinary shares in issue to 363,837,011, slightly diluting existing holdings but underscoring continued use of equity-based employee incentives.

These newly issued shares are fully fungible with existing ordinary shares and include a portion held in Treasury, indicating Burberry’s routine capital management and staff remuneration practices rather than a strategic fundraising move. For investors, the modest increase in share count reflects incremental dilution but also signals ongoing commitment to employee share ownership, a common tool in the competitive luxury fashion labour market.

The most recent analyst rating on (GB:BRBY) stock is a Hold with a £1033.00 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Burberry Updates Market on Total Voting Rights and Share Capital

Burberry has reported that, as of 28 February 2026, its issued share capital comprises 363,834,301 ordinary shares, including 2,839,220 shares held in treasury that carry no voting rights. This leaves a total of 360,995,081 voting rights in the company, a key reference figure for investors assessing disclosure obligations and monitoring significant shareholdings under U.K. transparency rules.

The most recent analyst rating on (GB:BRBY) stock is a Buy with a £1500.00 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Burberry Confirms Total Voting Rights at 360.99 Million Shares

Burberry has reported that, as of 31 January 2026, its issued share capital comprises 363,833,173 ordinary shares of 0.05 pence each, of which 2,839,220 are held in treasury and carry no voting rights. This leaves a total of 360,993,953 voting rights in the company, a figure that shareholders must use as the reference denominator when assessing and notifying their holdings or changes in holdings under UK financial transparency rules, ensuring accurate regulatory disclosures and clarity over Burberry’s ownership structure.

The most recent analyst rating on (GB:BRBY) stock is a Hold with a £1072.00 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Burberry Releases FY 2026 Q3 Trading Update and Sets Date for Full-Year Results

Burberry Group plc has published its trading update for the third quarter of its 2026 financial year, making the full statement available via the London Stock Exchange and the company’s own website. The luxury fashion house is engaging investors and analysts through a virtual presentation, complete with supporting slides and replay access, and has scheduled the release of its preliminary full-year results for the 52 weeks ending 28 March 2026 on 14 May 2026, signaling continued transparency and active communication with capital markets participants.

The most recent analyst rating on (GB:BRBY) stock is a Hold with a £14.00 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Burberry Confirms Total Voting Rights Following Year-End Share Capital Update

Burberry Group plc has confirmed that, as of 31 December 2025, its issued share capital comprised 363,826,752 ordinary shares, of which 2,839,220 are held in treasury and carry no voting rights. This leaves a total of 360,987,532 voting rights, a key reference figure for investors and regulators under UK disclosure rules, as it determines when shareholders must report changes in their holdings, thereby supporting transparency and regulatory compliance in the company’s shareholder base.

The most recent analyst rating on (GB:BRBY) stock is a Hold with a £13.40 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.