Burberry Group PLC (GB:BRBY)
LSE:BRBY
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Burberry
(LSE:BRBY)
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Rating:55Neutral
Price Target:
1,097.00 p
▼(-7.19% Downside)
Action:ReiteratedDate: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 driven by a 24% reduction in net inventory indicates structural improvement in product mix and fewer markdowns. Sustained healthier inventory supports margin durability, reduces promotional reliance and strengthens long-term cash conversion even if top-line recovery is gradual.
Negative Factors
Revenue Decline & Profitability
A significant YoY revenue decline and a negative net margin reflect structural demand and profitability shortfalls. Persistent top-line weakness constrains reinvestment and makes margin recovery dependent on sustained volume and premium mix gains rather than one-off cost cuts.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross Margin & Inventory
A 410bp gross margin uplift driven by a 24% reduction in net inventory indicates structural improvement in product mix and fewer markdowns. Sustained healthier inventory supports margin durability, reduces promotional reliance and strengthens long-term cash conversion even if top-line recovery is gradual.
Read all positive factors
Burberry (BRBY) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.20B
Dividend YieldN/A
Average Volume (3M)1.72M
Price to Earnings (P/E)―
Beta (1Y)1.71
Revenue Growth-9.44%
EPS Growth-170.53%
CountryUK
Employees9,336
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)<0.01
Shares Outstanding360,999,180
10 Day Avg. Volume1,197,363
30 Day Avg. Volume1,721,769
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)3.02
Price to Sales (P/S)1.12
P/FCF Ratio9.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,471.67Price Target Upside24.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.39
Revenue Forecast (FY)£2.56B
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,...
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/dig...
Burberry 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 return to sales growth, improvements in gross margin, and positive feedback from wholesale partners. However, challenges remain with declining overall revenue, retail traffic issues, and a decrease in wholesale and licensing revenues. Despite these challenges, the company is encouraged by new customer growth and successful cost-saving measures.Positive Updates
Return to Comparable Sales Growth
In Q2, Burberry achieved comp sales growth for the first time in 2 years, with a 2% increase in the second quarter.
Negative Updates
Decline in Total Revenue
Total revenue for the first half declined by 3% at constant exchange rates or 5% on a reported basis.
Read all updates
Q2-2026 Updates
Positive
Negative
Return to Comparable Sales Growth
In Q2, Burberry achieved comp sales growth for the first time in 2 years, with a 2% increase in the second quarter.
Read all positive updates
Company Guidance
During the call, Burberry provided several key metrics indicating progress in its Burberry Forward strategy. The company reported a return to comparable retail sales growth in Q2 for the first time in two years, with a 2% increase. Total revenue for the first half of fiscal 2026 was GBP 1.03 billion, and adjusted operating profit stood at GBP 19 million. The gross margin improved by 410 basis points to 67.9% compared to the previous year, attributed to a healthier inventory position, which also saw a 24% reduction in net inventory. The company is on track to achieve GBP 80 million in annualized savings by the end of the year, following an expanded restructuring program. Additionally, Burberry noted a significant increase in orders from key wholesale partners during its Summer 2026 wholesale market, reflecting a positive reception to its product offerings. Looking ahead, Burberry expects continued margin improvement and has maintained its full-year guidance, projecting no changes to retail space and expecting a mid-single-digit percentage decline in wholesale revenue for the full year.Burberry Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
60
Neutral
| 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
Positive
1182.00
Price Trends
1118.58
Positive
1174.94
Positive
1195.68
Negative
Market Momentum
17.57
Negative
61.43
Neutral
73.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BRBY, the sentiment is Positive. The current price of 1182 is above the 20-day moving average (MA) of 1092.29, above the 50-day MA of 1118.58, and below the 200-day MA of 1195.68, indicating a neutral trend. The MACD of 17.57 indicates Negative momentum. The RSI at 61.43 is Neutral, neither overbought nor oversold. The STOCH value of 73.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | £1.19B | 5.13 | 12.32% | ― | 9.64% | 71.55% | |
73 Outperform | £2.87B | 2.38 | 21.64% | ― | -6.43% | 52.93% | |
64 Neutral | £609.04M | -23.98 | 4.40% | 3.36% | -2.59% | -46.13% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £6.69B | 298.74 | 0.69% | 1.18% | 14.13% | -96.12% | |
55 Neutral | £4.20B | -40.23 | -2.99% | ― | -9.44% | -170.53% | |
52 Neutral | £81.39M | -2.45 | 370.62% | ― | -15.13% | 48.56% |
* Consumer Cyclical Sector Average
GB:BRBY
Burberry
1,171.20
432.40
58.53%
GB:MKS
Marks and Spencer
329.60
-53.12
-13.88%
GB:MUL
Mulberry
116.00
33.50
40.61%
GB:FRAS
Frasers Group
657.50
-12.50
-1.87%
GB:WOSG
Watches of Switzerland Group PLC
515.00
160.40
45.23%
GB:DOCS
Dr. Martens Plc
62.40
7.79
14.26%
Burberry Corporate Events
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...
Regulatory Filings and Compliance
Burberry Confirms Total Voting Rights at 360.99 Million Shares
Neutral
Feb 2, 2026
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 rig...
Business Operations and StrategyFinancial Disclosures
Burberry Releases FY 2026 Q3 Trading Update and Sets Date for Full-Year Results
Neutral
Jan 21, 2026
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 inves...
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.