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Burberry Group PLC (GB:BRBY)
LSE:BRBY
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Burberry (BRBY) AI Stock Analysis

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GB:BRBY

Burberry

(LSE:BRBY)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
1,101.00p
▼(-6.10% Downside)
Burberry's overall stock score is primarily impacted by its financial performance and valuation concerns. The company faces significant profitability challenges with declining revenues and increased leverage. Technical analysis indicates bearish momentum, further weighing on the stock's outlook. The lack of earnings call data and corporate events leaves these areas unaddressed.
Positive Factors
Strong Brand Identity
Burberry's strong brand identity and heritage provide a durable competitive advantage in the luxury market, fostering customer loyalty and premium pricing power.
Cash Generation Ability
Despite profitability challenges, Burberry's ability to generate positive cash flow indicates strong operational efficiency and financial resilience, supporting long-term sustainability.
Digital Presence
A robust digital presence allows Burberry to reach a wider audience and adapt to changing consumer behaviors, enhancing its market reach and supporting future growth.
Negative Factors
Declining Revenue
A significant decline in revenue indicates potential challenges in market demand or competitive pressures, which could impact long-term growth and profitability.
Increased Leverage
Increased leverage may strain financial flexibility and increase risk, potentially impacting Burberry's ability to invest in growth opportunities or weather economic downturns.
Profitability Issues
Negative net profit margins reflect operational challenges and inefficiencies, which may hinder Burberry's ability to reinvest in the business and sustain competitive positioning.

Burberry (BRBY) vs. iShares MSCI United Kingdom ETF (EWC)

Burberry Business Overview & Revenue Model

Company DescriptionBurberry 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 MoneyBurberry generates revenue through multiple streams, primarily from the sale of luxury goods. The company's core revenue comes from its retail and wholesale segments, where it sells directly to consumers through its own boutiques and online channels, as well as through third-party retailers. Key products include ready-to-wear clothing, accessories, and fragrances, which are marketed under the Burberry brand. Additionally, Burberry benefits from a strong digital presence, leveraging e-commerce to reach a wider audience and drive sales growth. The company also engages in collaborations and partnerships with other brands and influencers to enhance its market visibility and attract new customers. Seasonal collections and limited-edition releases create exclusivity, further driving customer demand and brand loyalty.

Burberry Financial Statement Overview

Summary
Burberry faces significant financial challenges with declining revenue and a negative net profit margin of -3.05%. The balance sheet shows increased leverage with a debt-to-equity ratio of 2.10, but the company maintains a substantial cash position. The cash flow remains positive, providing operational flexibility despite profitability issues.
Income Statement
45
Neutral
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
55
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.46B2.46B2.97B3.09B2.83B2.34B
Gross Profit1.54B1.54B2.01B1.84B1.68B1.37B
EBITDA139.00M428.00M828.00M1.02B858.00M693.10M
Net Income-75.00M-75.00M270.00M490.00M396.00M376.00M
Balance Sheet
Total Assets3.43B3.43B3.37B3.69B3.70B3.50B
Cash, Cash Equivalents and Short-Term Investments813.00M813.00M441.00M1.03B1.22B1.26B
Total Debt1.92B1.92B1.57B1.49B1.40B1.36B
Total Liabilities2.51B2.51B2.22B2.15B2.08B1.94B
Stockholders Equity914.00M914.00M1.15B1.53B1.61B1.56B
Cash Flow
Free Cash Flow307.00M278.00M294.00M571.00M534.00M473.70M
Operating Cash Flow429.00M429.00M506.00M750.00M699.00M591.40M
Investing Cash Flow-129.00M-127.00M-231.00M-153.00M-167.00M-93.10M
Financing Cash Flow48.00M48.00M-865.00M-815.00M-578.00M-156.50M

Burberry Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1172.50
Price Trends
50DMA
1213.54
Negative
100DMA
1150.54
Positive
200DMA
1045.99
Positive
Market Momentum
MACD
-19.87
Negative
RSI
51.12
Neutral
STOCH
78.54
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 1172.5 is above the 20-day moving average (MA) of 1160.40, below the 50-day MA of 1213.54, and above the 200-day MA of 1045.99, indicating a neutral trend. The MACD of -19.87 indicates Negative momentum. The RSI at 51.12 is Neutral, neither overbought nor oversold. The STOCH value of 78.54 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
£4.70B9.4116.77%1.08%14.60%58.84%
72
Outperform
£7.20B24.4110.06%1.01%5.96%-33.04%
72
Outperform
£14.17B18.1744.99%1.91%9.74%0.92%
57
Neutral
£5.38B27.904.56%33.83%15.11%
46
Neutral
£4.11B77.34-7.28%5.01%-17.08%-128.46%
46
Neutral
£355.65M-1.21-64.97%-15.86%-18.46%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BRBY
Burberry
1,172.50
500.50
74.48%
GB:ASC
ASOS plc
293.00
-136.20
-31.73%
GB:BTRW
Barratt Redrow
384.50
-89.49
-18.88%
GB:MKS
Marks and Spencer
358.70
-14.85
-3.98%
GB:NXT
Next plc
12,320.00
2,611.77
26.90%
GB:JD
JD Sports Fashion
93.02
-54.84
-37.09%

Burberry Corporate Events

Regulatory Filings and Compliance
Burberry Director Increases Stake with Share Purchase
Positive
Sep 5, 2025

Burberry Group PLC announced that Orna NíChionna, the Senior Independent Director, has purchased 1,208 ordinary shares of the company at a price of 1,234.1707 pence per share. This transaction, disclosed in compliance with the EU Market Abuse Regulation, highlights a significant investment by a key member of the company’s board, potentially indicating confidence in the company’s future performance and stability.

The most recent analyst rating on (GB:BRBY) stock is a Hold with a £13.60 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Regulatory Filings and Compliance
Burberry Updates Share Capital and Voting Rights
Neutral
Sep 1, 2025

Burberry Group PLC announced that its issued share capital as of August 31, 2025, consists of 363,817,789 ordinary shares, with 359,178,569 shares carrying voting rights. This update is crucial for shareholders to calculate their interests and comply with regulatory requirements, potentially impacting shareholder engagement and transparency in the company’s governance.

The most recent analyst rating on (GB:BRBY) stock is a Buy with a £15.00 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

Regulatory Filings and Compliance
Burberry Updates Share Capital and Voting Rights
Neutral
Aug 1, 2025

Burberry Group plc has announced an update on its share capital and voting rights as of July 31, 2025. The company has a total of 363,816,454 ordinary shares, with 4,639,220 held in treasury, resulting in 359,177,234 voting rights. This information is crucial for shareholders to determine their interests in the company under the FCA’s rules.

The most recent analyst rating on (GB:BRBY) stock is a Buy with a £9.25 price target. To see the full list of analyst forecasts on Burberry stock, see the GB:BRBY Stock Forecast page.

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.Date of analysis: Sep 28, 2025