Burberry (BRBY) AI Stock Analysis

• Market Cap: £3.75B
• Dividend Yield: 6.07%
• Average Volume (3M): 1.88M
• Price to Earnings (P/E): 77.3
• Beta (1Y): 1.62
• Revenue Growth: -15.48%
• EPS Growth: -91.10%
• Country: UK
• Employees: 9,336
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Luxury Goods
• EPS (TTM): 0.03
• Shares Outstanding: 359,177,100
• 10 Day Avg. Volume: 2,566,136
• 30 Day Avg. Volume: 1,883,740
• PEG Ratio: -0.79
• Price to Book (P/B): 2.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.96
• 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: £1,076.92
• Price Target Upside: 7.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 56 Neutral
• Price Target: ―

Burberry's overall stock score is primarily driven by strong operational efficiency and positive cash flow metrics, despite challenges in revenue and net income growth. Technical indicators show a bearish trend, and the valuation appears stretched. The high dividend yield provides some support to the stock.

Positive Factors

Financial Performance

Burberry's Q3 LFL was -4%, well ahead of the company-collated consensus of -12%, showing a strong performance.

Market Presence

Improved web traffic and social media engagement metrics highlight Burberry's increasing online presence.

Strategic Initiatives

The 'Burberry Forward' strategy is set to enhance brand visibility and desirability, promising a positive impact.

Negative Factors

Macroeconomic Challenges

Current trading is likely to remain choppy amid the challenging macro-economic backdrop.

Sales Density

A realistic path to a rebuild in margins requires far greater progress on sales densities, indicating potential challenges.

Burberry Business Overview & Revenue Model

Company Description

Burberry Group plc (BRBY) is a British luxury fashion house known for its distinctive tartan pattern and iconic trench coats. The company primarily operates in the fashion and retail sectors, offering a wide range of products, including clothing, accessories, fragrances, and beauty products. Burberry is renowned for its commitment to quality, craftsmanship, and innovation, blending its rich heritage with modern design and technology.

How the Company Makes Money

Burberry makes money through a diversified revenue model primarily driven by the sale of its luxury products. The company's key revenue streams include retail sales from its physical stores and e-commerce platforms, wholesale distribution to department stores and specialty retailers, and licensing agreements for products such as fragrances and eyewear. Burberry also benefits from strategic partnerships and collaborations that enhance its brand visibility and appeal. Factors contributing to its earnings include its global presence, strong brand identity, and focus on digital innovation, which helps attract a broad customer base and adapt to changing market trends.

Burberry Financial Statement Overview

Summary

Burberry demonstrates strong operational efficiency with solid gross and operating margins. However, challenges in revenue and net income growth, along with decreased stockholders' equity and low ROE, dampen the financial outlook. Positive cash flow metrics indicate good cash generation capabilities.

Income Statement

Burberry's income statement reveals a moderate performance with a decline in revenue by 4.07% from the previous year, and a substantial decrease in net income by 44.9%. The gross profit margin stands at a healthy 67.68%, but the net profit margin is relatively low at 9.1%. EBIT and EBITDA margins are 14.08% and 27.89% respectively, indicating a solid operating efficiency despite the revenue drop.

Balance Sheet

The balance sheet indicates a stable equity position with a debt-to-equity ratio of 1.37. The company has managed its leverage well, but stockholders' equity has decreased. The return on equity is low at 23.54%, reflecting decreased profitability. The equity ratio is 34.04%, suggesting a balanced asset structure, although slightly on the lower side for equity backing.

Cash Flow

Burberry's cash flow statement shows resilience with a notable free cash flow of £294 million and a strong operating cash flow to net income ratio of 1.87. Despite a decline in operating cash flow from the previous year, the firm's ability to generate cash relative to its earnings remains robust. Free cash flow to net income ratio is 1.09, indicating efficient cash conversion from profits.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.66B	2.97B	3.09B	2.83B	2.34B	2.63B
	Gross Profit
1.72B	2.01B	1.84B	1.68B	1.37B	1.44B
	EBIT
142.00M	418.00M	640.00M	514.00M	416.40M	467.80M
	EBITDA
265.00M	828.00M	1.02B	858.00M	693.10M	525.90M
	Net Income Common Stockholders
38.00M	270.00M	490.00M	396.00M	376.00M	121.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
711.80M	441.00M	1.03B	1.22B	1.26B	928.90M
	Total Assets
2.31B	3.37B	3.69B	3.70B	3.50B	3.29B
	Total Debt
51.50M	1.57B	1.49B	1.40B	1.36B	1.47B
	Net Debt
-660.30M	1.13B	460.00M	179.00M	100.80M	538.20M
	Total Liabilities
693.40M	2.22B	2.15B	2.08B	1.94B	2.07B
	Stockholders Equity
1.56B	1.15B	1.53B	1.61B	1.56B	1.21B
Cash Flow		Free Cash Flow
163.00M	294.00M	571.00M	534.00M	473.70M	301.40M
	Operating Cash Flow
328.00M	506.00M	750.00M	699.00M	591.40M	455.80M
	Investing Cash Flow
-208.00M	-231.00M	-153.00M	-167.00M	-93.10M	-154.10M
	Financing Cash Flow
-366.00M	-865.00M	-815.00M	-578.00M	-156.50M	-260.20M

Burberry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1005.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1005 is above the 20-day moving average (MA) of 832.54, above the 50-day MA of 802.75, and above the 200-day MA of 847.54, indicating a bullish trend. The MACD of 67.63 indicates Negative momentum. The RSI at 67.50 is Neutral, neither overbought nor oversold. The STOCH value of 84.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BRBY.

Burberry Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JD	77 Outperform	£4.79B	9.79	18.22%	1.00%	2.85%	61.98%
MKS	71 Outperform	£7.44B	25.14	10.25%	0.82%	6.87%	22.36%
FRAS	69 Neutral	£2.99B	10.05	16.46%	―	-6.82%	-37.46%
Sector *	62 Neutral	$6.97B	11.36	2.77%	3.91%	2.66%	-22.00%
SMWH	62 Neutral	£1.33B	204.65	2.46%	3.18%	4.46%	-89.55%
BRBY	56 Neutral	£3.75B	77.34	-7.28%	6.07%	-15.48%	-91.10%
DEBS	48 Neutral	£283.84M	―	-96.36%	―	-16.32%	-202.39%

Burberry Corporate Events

Burberry Announces Board Change with Sam Fischer’s Retirement

Burberry Group PLC announced the retirement of Sam Fischer, an independent Non-Executive Director, from its Board following the Annual General Meeting in July 2025. Fischer, who has been with the Board since 2019, is stepping down to concentrate on his business commitments in Australia. His departure marks a change in the company’s board composition, potentially impacting its governance dynamics.

Spark’s Take on GB:BRBY Stock

According to Spark, TipRanks’ AI Analyst, GB:BRBY is a Neutral.

Burberry’s overall stock score is primarily driven by strong operational efficiency and positive cash flow metrics, despite challenges in revenue and net income growth. Technical indicators show a bearish trend, and the valuation appears stretched. The high dividend yield provides some support to the stock.

To see Spark’s full report on GB:BRBY stock, click here.

Burberry Announces Updated Share Capital and Voting Rights

Burberry Group PLC announced that its issued share capital as of April 30, 2025, consists of 363,816,314 ordinary shares, with 4,639,220 held in Treasury. This results in a total of 359,177,094 voting rights, which shareholders can use to determine their interest in the company under FCA rules. This update is crucial for stakeholders to understand their voting power and any potential changes in their shareholding status.

Spark’s Take on GB:BRBY Stock

According to Spark, TipRanks’ AI Analyst, GB:BRBY is a Neutral.

Burberry’s overall stock score is primarily driven by strong operational efficiency and positive cash flow metrics, despite challenges in revenue and net income growth. Technical indicators show a bearish trend, and the valuation appears stretched. The high dividend yield provides some support to the stock.

To see Spark’s full report on GB:BRBY stock, click here.

Burberry Announces Change in Major Shareholdings

Burberry Group PLC has announced a change in major shareholdings, with Norges Bank increasing its voting rights in the company to 3.157850% as of March 28, 2025. This acquisition of voting rights by Norges Bank, a major financial institution based in Oslo, Norway, signifies a notable shift in Burberry’s shareholder structure, potentially impacting its strategic decisions and stakeholder interests.

Burberry Announces Share Capital and Voting Rights Update

Burberry Group PLC announced its issued share capital as of March 31, 2025, consisting of 363,816,314 ordinary shares, with 4,639,220 held in Treasury, which do not carry voting rights. This results in a total of 359,177,094 voting rights available, a crucial figure for shareholders to determine their notification obligations under FCA rules.

Burberry Updates Share Capital and Voting Rights

Burberry Group PLC has announced its updated issued share capital as of 28 February 2025, consisting of 363,816,314 ordinary shares, with 4,639,220 held in Treasury. The total number of voting rights in the company is 359,177,094, which is crucial for shareholders to determine their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules.