Burberry (BRBY) AI Stock Analysis

• Market Cap: £4.03B
• Dividend Yield: 5.01%
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 77.3
• Beta (1Y): 1.72
• Revenue Growth: -17.08%
• EPS Growth: -128.46%
• Country: UK
• Employees: 9,336
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Luxury Goods
• EPS (TTM): 0.03
• Shares Outstanding: 359,177,250
• 10 Day Avg. Volume: 1,987,969
• 30 Day Avg. Volume: 1,649,029
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £1,265.31
• Price Target Upside: 14.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 65 Neutral
• Price Target: 1,314.00p ▲(18.49% Upside)

Burberry's overall stock score reflects a mixed outlook. Strong technical indicators and positive corporate events show potential for future growth and shareholder confidence. However, significant challenges in financial performance and poor valuation metrics, particularly the negative P/E ratio, weigh down the score. The company's ability to address its financial challenges will be crucial for future performance.

Positive Factors

Brand Strategy

The sensible 'Burberry Forward' strategy will reignite brand visibility and desirability.

Financial Performance

Burberry's FY25 results slightly exceeded expectations with adjusted EBIT of £26m versus the consensus of £11m.

Market Opportunities

Significant growth opportunities exist for Burberry in the US luxury apparel market, despite manageable tariffs risks.

Negative Factors

Cost Management

The company's release flagged that actions are expected to 'build as the year progresses', suggesting reliance on future cost-savings.

Macro-Economic Conditions

Current trading likely remains choppy amid the current macro-economic backdrop.

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 generates revenue through multiple streams, primarily from the sale of luxury goods. The company's core revenue comes from its retail and wholesale segments, where it sells directly to consumers through its own boutiques and online channels, as well as through third-party retailers. Key products include ready-to-wear clothing, accessories, and fragrances, which are marketed under the Burberry brand. Additionally, Burberry benefits from a strong digital presence, leveraging e-commerce to reach a wider audience and drive sales growth. The company also engages in collaborations and partnerships with other brands and influencers to enhance its market visibility and attract new customers. Seasonal collections and limited-edition releases create exclusivity, further driving customer demand and brand loyalty.

Burberry Financial Statement Overview

Summary

Burberry faces significant financial challenges with declining revenue and a negative net profit margin of -3.05%. The balance sheet shows increased leverage with a debt-to-equity ratio of 2.10, but the company maintains a substantial cash position. The cash flow remains positive, providing operational flexibility despite profitability issues.

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	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	828.00M	1.02B	858.00M	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	-129.00M	-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 Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1109.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BRBY, the sentiment is Neutral. The current price of 1109 is below the 20-day moving average (MA) of 1268.30, below the 50-day MA of 1194.57, and above the 200-day MA of 997.36, indicating a neutral trend. The MACD of -21.40 indicates Positive momentum. The RSI at 29.64 is Positive, neither overbought nor oversold. The STOCH value of 6.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:BRBY.

Burberry Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JD	78 Outperform	£4.46B	9.27	18.22%	1.14%	8.69%	-9.09%
NXT	74 Outperform	£13.63B	19.00	46.76%	1.97%	11.42%	-7.03%
MKS	67 Neutral	£7.10B	24.08	10.25%	1.02%	5.96%	-33.04%
BRBY	65 Neutral	£4.03B	77.34	-7.28%	5.01%	-17.08%	-128.46%
Sector *	61 Neutral	$17.24B	11.48	-5.97%	3.08%	1.37%	-15.54%
BTRW	57 Neutral	£5.39B	36.20	1.81%	4.57%	4.78%	-53.59%
ASC	47 Neutral	£371.17M	―	-62.59%	―	-15.86%	-18.46%

Burberry Corporate Events

Burberry Updates Share Capital and Voting Rights

Burberry Group plc has announced an update on its share capital and voting rights as of July 31, 2025. The company has a total of 363,816,454 ordinary shares, with 4,639,220 held in treasury, resulting in 359,177,234 voting rights. This information is crucial for shareholders to determine their interests in the company under the FCA’s rules.

The most recent analyst rating on (GB:BRBY) stock is a Buy with a £9.25 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Burberry Grants Conditional Share Awards to Executives

Burberry Group PLC announced the grant of conditional share awards to its Executive Directors and Persons Discharging Managerial Responsibilities under the Burberry Share Plan 2020. The awards, which are based on a share price of 1,348 pence, will vest in 2028 and are contingent upon continued employment and performance metrics related to revenue, return on invested capital, and brand sustainability strategies. This move is aimed at aligning the interests of the executives with the long-term goals of the company, potentially impacting its operational focus and stakeholder confidence.

The most recent analyst rating on (GB:BRBY) stock is a Hold with a £6.95 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Burberry Announces Change in Major Holdings by Norges Bank

Burberry Group PLC has announced a change in its major holdings, as Norges Bank has adjusted its voting rights in the company. The bank’s voting rights have decreased from 3.004140% to 2.968030%, impacting the total number of voting rights held. This adjustment in holdings reflects a slight shift in the company’s shareholder structure, which could influence future decision-making processes and stakeholder interests.

The most recent analyst rating on (GB:BRBY) stock is a Sell with a £490.00 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Burberry Reports Q1 2025 Trading Update Amid Strategic Transformation

Burberry has reported its first quarter trading update for 2025, indicating a 6% decline in retail revenue at reported exchange rates, with comparable store sales down by 1%. Despite a challenging macroeconomic environment, the company is encouraged by improvements in brand desirability and sales in core categories like outerwear and scarves. The ‘Burberry Forward’ initiative, which includes enhanced visual merchandising and online momentum, aims to drive sustainable growth. The company is focusing on cost efficiency, expecting £80 million in annualized savings by FY26, and is confident in achieving sustainable, profitable growth.

The most recent analyst rating on (GB:BRBY) stock is a Sell with a £490.00 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Burberry’s 2025 AGM Resolutions Passed with Strong Shareholder Support

Burberry Group PLC announced the successful passage of all resolutions at its 2025 Annual General Meeting, held in London. The resolutions included the re-election of several directors, the appointment of new directors, and the re-appointment of Ernst & Young LLP as the company’s auditor. The meeting also saw the departure of directors Fabiola Arrendondo, Sam Fischer, and Antoine de Saint-Affrique, who did not stand for re-election. This AGM outcome reflects strong shareholder support and is expected to maintain stability in Burberry’s governance and strategic direction.

The most recent analyst rating on (GB:BRBY) stock is a Buy with a £9.25 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Norges Bank Increases Stake in Burberry Group PLC

Burberry Group PLC announced a change in major shareholding as Norges Bank, based in Oslo, Norway, increased its voting rights in the company to 3.004140% as of July 2, 2025. This development indicates a slight shift in the ownership structure, potentially impacting Burberry’s strategic decisions and signaling confidence in the company’s market position.

The most recent analyst rating on (GB:BRBY) stock is a Buy with a £9.25 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

BlackRock Increases Stake in Burberry to Over 5%

Burberry Group PLC has announced a change in its major holdings as BlackRock, Inc., a leading global investment management corporation, has increased its voting rights in the company to 5.12%. This acquisition, crossing the 5% threshold, signifies BlackRock’s growing influence within Burberry, potentially impacting the company’s strategic decisions and shareholder dynamics.

The most recent analyst rating on (GB:BRBY) stock is a Buy with a £9.25 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Burberry Announces Share Capital and Voting Rights Update

Burberry Group PLC has announced the details of its issued share capital as of June 30, 2025, which consists of 363,816,314 ordinary shares. Out of these, 4,639,220 shares are held in treasury and do not carry voting rights, leaving a total of 359,177,094 voting rights. This information is crucial for shareholders to determine their interests in the company according to the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:BRBY) stock is a Buy with a £9.25 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Burberry Executives Increase Stake in Company Shares

Burberry Group PLC announced that its Chief Executive Officer, Joshua Schulman, and Chief Financial Officer, Catherine Ferry, have purchased significant amounts of company shares. Schulman acquired 29,744 shares at a price of 1,069.0945 pence each, while Ferry purchased 3,228 shares at 1,099.7940 pence each. These transactions, conducted on June 27, 2025, reflect the executives’ confidence in the company’s future performance and may positively influence investor sentiment.

The most recent analyst rating on (GB:BRBY) stock is a Buy with a £9.25 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Norges Bank Adjusts Voting Rights in Burberry Group

Burberry Group PLC has announced a change in the major interests of its shares, as Norges Bank has adjusted its voting rights in the company. The adjustment reflects a decrease in Norges Bank’s voting rights from 3.157850% to 2.992160%, impacting the overall shareholder structure of Burberry. This change, noted on May 30, 2025, and reported on June 4, 2025, may influence the company’s governance dynamics and stakeholder interests.

The most recent analyst rating on (GB:BRBY) stock is a Buy with a £9.25 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Burberry Announces Current Share Capital and Voting Rights

Burberry Group PLC has announced its current issued share capital, which consists of 363,816,314 ordinary shares, with 4,639,220 held in treasury and not carrying voting rights. The total number of voting rights is 359,177,094, a figure that shareholders can use to assess their holdings under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:BRBY) stock is a Buy with a £9.25 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Burberry Releases 2024/25 Annual Report and Announces AGM Details

Burberry Group PLC has released its Annual Report and Accounts for the financial year ending 29 March 2025, along with the Notice of the 2025 Annual General Meeting and the Form of Proxy for the AGM. These documents are accessible on the company’s website and have been submitted to the Financial Conduct Authority’s National Storage Mechanism. The AGM is scheduled for 16 July 2025 in London, where shareholders will vote on various resolutions. The outcome of these votes will be published on Burberry’s website post-meeting, reflecting the company’s ongoing commitment to transparency and shareholder engagement.

The most recent analyst rating on (GB:BRBY) stock is a Buy with a £9.25 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.