Burberry (BRBY) AI Stock Analysis

• Market Cap: £3.88B
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• 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: 360,995,100
• 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: 28.63% 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: 1,088.00 p ▲(0.42% 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

High gross margins and pricing power

Burberry’s elevated gross margins (reported 62.5% and a recent improvement to 67.9%) reflect durable pricing power and a favorable product mix skewed to high-margin leather goods and accessories. Strong gross margin provides structural cash generation capacity and buffers operating profit recovery over months.

Return to comparable retail sales growth

Achieving a 2% comparable retail sales increase in Q2, the first in two years, signals renewed consumer demand and improved product-market fit across direct channels. Persistent comp growth supports operating leverage in stores and e-commerce, aiding sustainable revenue stabilization over the next several quarters.

Cost savings, inventory reduction, and cash generation

The GBP 80m annualized cost savings program, a 24% reduction in net inventory and continued positive operating cash flow are structural fixes that lower working capital needs, improve margins and liquidity, and provide runway for reinvestment or restructuring through the next 2–6 months.

Negative Factors

Declining revenue trend

A multi-period revenue decline (approx 17% y/y and weaker H1 performance) indicates structural demand, distribution, or assortment issues. Persistent top-line weakness erodes operating leverage, makes margin recovery harder, and limits the effectiveness of cost programs absent sustained sales improvement.

Negative profitability

A negative net margin and net loss despite strong gross margins point to structural cost or SG&A pressures. Continued unprofitability reduces retained earnings, constrains strategic reinvestment, and requires durable revenue or structural cost changes to restore return on equity and shareholder capital over the medium term.

Rising leverage and net debt

Leverage has increased (D/E ~2.10) and reported net debt creates higher fixed obligations and refinancing sensitivity. Elevated leverage limits financial flexibility for product investment or marketing, raises interest and covenant risk, and reduces resilience to slower revenue recovery in the coming quarters.

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: 1083.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1083.5 is below the 20-day moving average (MA) of 1161.18, below the 50-day MA of 1203.50, and below the 200-day MA of 1196.43, indicating a bearish trend. The MACD of -29.82 indicates Positive momentum. The RSI at 32.75 is Neutral, neither overbought nor oversold. The STOCH value of 21.60 is Neutral, 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	£1.13B	5.13	12.32%	―	9.64%	71.55%
FRAS	73 Outperform	£2.90B	2.38	19.54%	―	-6.43%	52.93%
DOCS	64 Neutral	£619.11M	-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	£7.24B	298.74	0.69%	1.18%	14.13%	-96.12%
BRBY	55 Neutral	£3.88B	-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 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.

Burberry Aligns Leadership Interests with Shareholders Through Share Incentive Plan

Burberry Group PLC announced changes in the shareholdings of its directors and persons discharging managerial responsibilities. On December 11, 2025, CEO Joshua Schulman and CFO Kate Ferry were each granted 41 ordinary shares at no cost under the company’s Share Incentive Plan. This move is part of Burberry’s ongoing efforts to align the interests of its leadership with those of its shareholders, potentially impacting the company’s operational strategies and stakeholder relations.

The most recent analyst rating on (GB:BRBY) stock is a Buy with a £15.70 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.