Burberry (BRBY) AI Stock Analysis

• Market Cap: £4.58B
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.93
• 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: 360,985,380
• 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: £1,362.50
• Price Target Upside: 8.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: 1,261.00p ▼(-0.04% Downside)

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

Return to Sales Growth

The return to sales growth indicates a positive shift in market demand and operational effectiveness, potentially leading to sustained revenue improvements.

Improved Gross Margin

Improved gross margins reflect better cost management and inventory efficiency, enhancing profitability potential and financial resilience.

Successful Cost Savings Program

The cost savings program strengthens financial health by reducing expenses, allowing for reinvestment in growth initiatives and margin improvement.

Negative Factors

Decline in Total Revenue

A decline in total revenue suggests ongoing challenges in market conditions or product demand, potentially impacting long-term growth prospects.

Challenges in Retail Traffic

Persistent challenges in retail traffic can hinder sales growth and indicate a need for strategic adjustments in customer engagement and store operations.

Rising Debt Levels

Rising debt levels increase financial risk and limit flexibility, potentially affecting the company's ability to invest in growth and innovation.

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: Positive
• Last Price: 1261.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1261.5 is above the 20-day moving average (MA) of 1227.73, above the 50-day MA of 1218.20, and above the 200-day MA of 1094.67, indicating a bullish trend. The MACD of 25.25 indicates Negative momentum. The RSI at 55.43 is Neutral, neither overbought nor oversold. The STOCH value of 60.96 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXT	76 Outperform	£15.81B	20.25	51.86%	1.80%	9.74%	0.92%
JD	71 Outperform	£4.13B	8.39	19.64%	1.21%	14.60%	58.84%
BTRW	67 Neutral	£5.24B	27.37	2.80%	4.73%	33.83%	15.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MKS	61 Neutral	£6.51B	328.57	0.68%	1.18%	14.13%	-96.12%
ASC	59 Neutral	£323.09M	-1.08	-81.34%	―	-14.89%	12.08%
BRBY	55 Neutral	£4.58B	-167.31	-3.00%	―	-9.44%	-170.53%

Burberry Corporate Events

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.

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.

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.

Burberry Announces Share Capital and Voting Rights Update

Burberry Group PLC announced its issued share capital as of September 30, 2025, totaling 363,819,287 ordinary shares, with 2,839,220 held in Treasury, which do not carry voting rights. The total number of voting rights is 360,980,067, a figure shareholders can use to assess their interests under FCA rules, impacting how stakeholders engage with the company.