Burberry (BRBY) AI Stock Analysis

• Market Cap: £4.62B
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.94
• 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: 360,987,520
• 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: £1,378.75
• Price Target Upside: 8.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: 1,394.00p ▲(9.59% Upside)

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

Improved Gross Margin

A 410bps lift to a 67.9% gross margin, driven by a healthier inventory position, reflects durable ability to preserve product pricing and reduce promotional markdowns. Sustained higher gross margins support long-term profitability even if top-line recovery is gradual, improving cash conversion and reinvestment capacity.

Positive Operating Cash Flow

Despite accounting losses, robust operating cash flow indicates the business generates real cash from core operations, providing liquidity to fund working capital and restructuring. Persistent cash generation cushions the firm against cyclical dips and funds strategic investment without immediate reliance on external financing.

Structural Cost Savings

A GBP 80m annualized savings program represents a structural reduction in operating cost base, enhancing operating leverage. If realized, these savings should sustainably improve adjusted operating margins, offset revenue pressures and create runway to invest in product and channels to rebuild growth.

Negative Factors

Declining Revenue & Profitability

Material revenue declines (reported ~17% yoy decline in one period) and a negative net margin erode the firm's earnings power and return on equity. Persistent top-line weakness constrains ability to leverage fixed costs, threatens long-term margin recovery, and limits freedom to reinvest in growth initiatives.

Rising Leverage

A D/E around 2.1 and reduced equity ratio increase financial risk and reduce balance-sheet flexibility. Higher leverage raises interest and covenant exposure, limits capital allocation choices, and could force prioritization of liability management over growth investments during prolonged market softness.

Channel & Licensing Weakness

Simultaneous declines in wholesale and licensing, plus weak retail traffic, signal structural demand and distribution challenges. Persistent channel underperformance risks long-term revenue mix deterioration, reduces scale benefits, and requires strategic repositioning of product, pricing and partner relationships to restore sustainable growth.

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 key streams, primarily from the sale of luxury apparel and accessories. The company's product lines are categorized into segments such as outerwear, ready-to-wear, handbags, and footwear. The retail segment represents a significant portion of Burberry's revenue, with branded flagship stores, concessions in high-end department stores, and a growing online presence contributing to sales. Additionally, Burberry has a wholesale distribution model that allows it to partner with select high-end retailers worldwide. The brand's ability to maintain strong margins is supported by its prestigious brand image and loyal customer base. Collaborations and limited-edition launches also contribute to revenue, as they create buzz and drive demand. Furthermore, Burberry invests in digital marketing and e-commerce strategies to enhance customer engagement and expand its reach, particularly in emerging markets.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Neutral
• Last Price: 1272.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 1272 is below the 20-day moving average (MA) of 1298.23, above the 50-day MA of 1234.45, and above the 200-day MA of 1127.39, indicating a neutral trend. The MACD of 19.11 indicates Positive momentum. The RSI at 48.03 is Neutral, neither overbought nor oversold. The STOCH value of 34.22 is Neutral, 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
WOSG	79 Outperform	£1.11B	16.48	12.24%	―	9.64%	71.55%
FRAS	73 Outperform	£2.94B	6.25	19.54%	―	-6.43%	52.93%
DOCS	64 Neutral	£734.10M	47.47	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	£7.33B	370.92	0.68%	1.18%	14.13%	-96.12%
BRBY	55 Neutral	£4.62B	-168.70	-3.00%	―	-9.44%	-170.53%
MUL	52 Neutral	£77.18M	-3.44	―	―	-15.13%	48.56%

Burberry Corporate Events

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.

Burberry Updates Share Capital and Voting Rights

Burberry Group PLC announced its updated share capital and voting rights, revealing a total of 363,824,611 ordinary shares, with 2,839,220 held in treasury. This results in 360,985,391 voting rights available to shareholders, which is crucial for determining shareholder interests under the FCA’s rules.

The most recent analyst rating on (GB:BRBY) stock is a Sell with a £950.00 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Burberry’s Strategic Turnaround Shows Early Signs of Success

Burberry has reported its interim results for the 26 weeks ending September 27, 2025, showcasing a strategic turnaround under the ‘Burberry Forward’ initiative. The company experienced a return to comparable store sales growth for the first time in two years, despite a slight decline in overall revenue. Adjusted operating profit improved significantly, and the brand’s strategic focus on enhancing product offerings and customer experience is gaining traction. The company is optimistic about continued growth and profitability, driven by cost efficiency programs and a focus on brand desirability.

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 Updates Share Capital and Voting Rights

Burberry Group PLC has announced its current issued share capital as of October 31, 2025, which consists of 363,822,158 ordinary shares, including 2,839,220 shares held in treasury. The total number of voting rights is 360,982,938, which shareholders can use to determine their notification requirements under FCA rules. This update is crucial for stakeholders to understand their voting power and any changes in their shareholding interests.

The most recent analyst rating on (GB:BRBY) stock is a Hold with a £1222.00 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.