Burberry Group PLC (GB:BRBY)
LSE:BRBY
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Burberry
(LSE:BRBY)
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Rating:53Neutral
Price Target:
1,099.00 p
▼(-7.02% Downside)
Action:Reiterated
Date:05/19/26
Overall score reflects mixed fundamentals: weaker recent profitability and higher leverage weigh most, partially offset by resilient cash flow and a more optimistic FY27 outlook from management. Technicals are bearish (price below key moving averages), and valuation is a major drag due to the very high P/E.
Positive Factors
Gross margin expansion
A 530bp gross margin improvement to 67.9% reflects successful inventory reset and higher full‑price sell‑through. Sustained higher gross margin is a durable buffer for profitability, enabling operating leverage and funding marketing or capex without immediate margin erosion.
Negative Factors
Elevated leverage
Leverage has increased materially versus prior years, reflecting greater reliance on debt as equity contracted. Elevated debt ratios constrain financial flexibility, increase interest and refinancing risk, and limit ability to absorb further operational setbacks over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross margin expansion
A 530bp gross margin improvement to 67.9% reflects successful inventory reset and higher full‑price sell‑through. Sustained higher gross margin is a durable buffer for profitability, enabling operating leverage and funding marketing or capex without immediate margin erosion.
Read all positive factors
Burberry (BRBY) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.88B
Dividend YieldN/A
Average Volume (3M)1.72M
Price to Earnings (P/E)188.7
Beta (1Y)1.78
Revenue Growth-1.67%
EPS GrowthN/A
CountryUK
Employees9,419
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.06
Shares Outstanding361,008,730
10 Day Avg. Volume1,197,363
30 Day Avg. Volume1,721,769
Financial Highlights & Ratios
PEG Ratio-1.45
Price to Book (P/B)4.15
Price to Sales (P/S)1.61
P/FCF Ratio9.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,292.00Price Target Upside9.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.38
Revenue Forecast (FY)£2.54B
Burberry Business Overview & Revenue Model
Company Description
Burberry Group plc, together with its subsidiaries, engages in manufacturing, retail, and wholesale of luxury goods under the Burberry brand in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. The company operates in two...
How the Company Makes Money
Burberry primarily makes money by selling Burberry-branded luxury products through multiple channels. The core of its revenue comes from retail sales in directly operated stores and concessions (shop-in-shops) where Burberry controls merchandising...
Burberry 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 conveyed a materially improved financial and operational performance: strong margin expansion (up 530 bps), a large swing in adjusted operating profit (GBP 26m to GBP 160m), improved cash flow and reduced leverage, plus clear customer and product momentum (notably in Greater China, the Americas, scarves and outerwear). Challenges include traffic headwinds, licensing and wholesale softness, regional tourism declines, and near‑term restructuring costs, but management provided concrete progress and FY27 guidance for continued revenue and margin expansion. Overall, positives (profitability, margin, cash generation, brand momentum, and strategic initiatives) outweigh the remaining operational and macro challenges.Positive Updates
Return to Comparable Sales Growth
Company returned to positive comparable sales, with sequential momentum through the year and Q4 comparable sales up 5%. Greater China and the Americas each delivered double-digit Q4 comps of +10%.
Negative Updates
Reported Revenue Slight Decline
Total revenue was stable at constant exchange rates but declined 2% on a reported basis, reflecting FX and other reported factors.
Read all updates
Q4-2026 Updates
Positive
Negative
Return to Comparable Sales Growth
Company returned to positive comparable sales, with sequential momentum through the year and Q4 comparable sales up 5%. Greater China and the Americas each delivered double-digit Q4 comps of +10%.
Read all positive updates
Company Guidance
Guidance for FY27 reiterated an expectation of revenue growth and margin expansion while remaining mindful of macro uncertainty, with retail space to be broadly stable; wholesale is expected to grow mid‑single‑digit in H1; annualized cost savings of around GBP 100m (GBP 80m delivered in FY26) with adjusting items of c. GBP 5m in FY27 (bringing total adjusting items to ~GBP 50m); capital expenditure of c. GBP 120m; a currency headwind of about GBP 10m to both revenue and adjusted operating profit; and an effective tax rate of 27–30%. For context, FY26 delivered a 67.9% gross margin (+530bps), adjusted operating profit of GBP 160m (6.6% margin), adjusted EPS of 15.2p, free cash flow of GBP 141m, and net debt/adjusted EBITDA of 1.6x, underpinning management’s medium‑term ambition of returning to c. GBP 3bn sales with ~70% gross margin and high‑teens operating margin.Burberry Financial Statement Overview
Summary
Income Statement
49
Neutral
Balance Sheet
45
Neutral
Cash Flow
63
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.42B | 2.46B | 2.97B | 3.09B | 2.83B |
| Gross Profit | 1.27B | 1.54B | 2.01B | 1.84B | 1.68B |
| EBITDA | 528.00M | 428.00M | 816.00M | 1.02B | 858.00M |
| Net Income | 21.00M | -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 | 671.00M | 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 | 940.00M | 914.00M | 1.15B | 1.53B | 1.61B |
Cash Flow | |||||
| Free Cash Flow | 411.00M | 278.00M | 294.00M | 571.00M | 534.00M |
| Operating Cash Flow | 484.00M | 429.00M | 506.00M | 750.00M | 699.00M |
| Investing Cash Flow | -114.00M | -127.00M | -231.00M | -153.00M | -167.00M |
| Financing Cash Flow | -459.00M | 48.00M | -865.00M | -815.00M | -578.00M |
Burberry Technical Analysis
Negative
1182.00
Price Trends
1144.26
Negative
1129.64
Negative
1171.64
Negative
Market Momentum
-12.77
Positive
41.04
Neutral
11.33
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 1182 is above the 20-day moving average (MA) of 1128.25, above the 50-day MA of 1144.26, and above the 200-day MA of 1171.64, indicating a bearish trend. The MACD of -12.77 indicates Positive momentum. The RSI at 41.04 is Neutral, neither overbought nor oversold. The STOCH value of 11.33 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £1.65B | 23.60 | 12.32% | ― | 9.64% | 71.55% | |
73 Outperform | £3.15B | 6.78 | 21.64% | ― | -6.43% | 52.93% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | £7.77B | 30.71 | 8.86% | 1.18% | 25.02% | -13.12% | |
57 Neutral | £689.10M | 28.92 | 6.89% | 3.36% | -2.88% | 425.53% | |
53 Neutral | £3.88B | 188.68 | 2.29% | ― | -1.67% | ― | |
52 Neutral | £95.42M | -4.33 | 370.62% | ― | -15.13% | 48.56% |
* Consumer Cyclical Sector Average
GB:BRBY
Burberry
1,083.00
9.00
0.84%
GB:MKS
Marks and Spencer
378.10
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7.45%
GB:MUL
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136.00
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36.00%
GB:FRAS
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732.00
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8.61%
GB:WOSG
Watches of Switzerland Group PLC
708.00
311.20
78.43%
GB:DOCS
Dr. Martens Plc
72.00
-0.54
-0.75%
Burberry Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Burberry Names Bridgepoint Founder William Jackson as Successor to Chair Gerry Murphy
Positive
May 14, 2026
Burberry has announced a planned chair succession, with Gerry Murphy set to retire as chair at the time of the company’s interim results in November 2026, nearing the end of his nine-year tenure. He will be succeeded by William Jackson, foun...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Burberry Publishes Preliminary Full-Year 2026 Results and Hosts Investor Presentation
Neutral
May 14, 2026
Burberry Group, the British luxury fashion house, has released its preliminary results for the 52 weeks ended 28 March 2026, making the full statement available through the London Stock Exchange and its own corporate website. The filing underscore...
Business Operations and StrategyRegulatory Filings and Compliance
Burberry Updates Share Capital and Voting Rights After Sharesave Issue
Neutral
May 1, 2026
Burberry Group plc has issued and allotted 6,371 new ordinary shares between 2 April and 16 April 2026 under its Sharesave employee share plan, using an existing block admission to the London Stock Exchange’s Main Market. Following this issu...
Business Operations and StrategyExecutive/Board Changes
Burberry Director Alessandra Cozzani Joins Brembo NV Board as Independent Non-Executive
Positive
Apr 29, 2026
Burberry Group plc, the British luxury fashion house listed in London and a member of the FTSE 100 index, continues to leverage its strong brand portfolio, including its iconic Equestrian Knight device and Burberry Check, in the global high-end ap...
Business Operations and StrategyRegulatory Filings and Compliance
Burberry Updates Share Capital and Voting Rights After Sharesave Issuance
Neutral
Apr 1, 2026
Burberry Group has issued and allotted 1,376 new ordinary shares under its Sharesave employee share plan, using an existing block admission to trading on the London Stock Exchange. Following this minor issuance, the company’s total share cap...
Other
Burberry Non-Executive Director Stella King Increases Stake With Share Purchase
Positive
Mar 20, 2026
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 i...
Business Operations and StrategyPrivate Placements and Financing
Burberry Issues New Shares Under Employee Sharesave Scheme
Neutral
Mar 20, 2026
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 a...
Regulatory Filings and Compliance
Burberry Updates Market on Total Voting Rights and Share Capital
Neutral
Mar 2, 2026
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 co...
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.