Burberry Group (BURBY) AI Stock Analysis

Burberry Group

(Other OTC:BURBY)

Select Model

Rating:49Neutral

Price Target:$13.00▼(-9.53% Downside)

Action:reiterated

Date:08/19/26

The overall score is held down primarily by weak recent financial performance—declining revenue, sharply compressed profitability and rising leverage—together with an expensive valuation, while technicals indicate a prevailing downtrend despite oversold conditions; these risks are partly offset by strong gross margins, solid and improving cash flows and a positive earnings call that highlights operational progress, margin recovery and deleveraging.

Positive Factors

Margin and profit recoveryThe sharp improvement in gross margin and adjusted operating profit indicates that inventory actions, fuller-price sell-through, and execution are restoring operating leverage. If sustained, this recovery can strengthen earnings quality and provide more resources for brand investment over the coming quarters.

Negative Factors

Uneven revenue and channel performanceThe reported revenue decline and weakness in wholesale and licensing show that the recovery is not yet broad-based across Burberry’s distribution model. Continued softness in these channels could limit overall growth and make the turnaround more dependent on direct retail performance.

Burberry Group (BURBY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $5.04B
Dividend Yield: ―
Average Volume (3M): 41.11K
Price to Earnings (P/E): 183.4
Beta (1Y): 1.63
Revenue Growth: 3.33%
EPS Growth: ―
Country: US
Employees: 7,299
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Luxury Goods

Burberry Group Business Overview & Revenue Model

Company Description

Burberry Group Plc operates as a holding company, manufactures, designs and distributes apparels and accessories under the Burberry brand. It operates through the following segments: Retail and Wholesale, and Licensing. The Retail and Wholesale segme...

How the Company Makes Money

Burberry primarily makes money by selling luxury goods under the Burberry brand, generating revenue through a mix of direct-to-consumer and wholesale channels. The largest contributor is typically retail revenue from directly operated stores and e-co...

Burberry Group Earnings Call Summary

Earnings Call Date:May 13, 2026(Q4-2026)|% Change Since:-8.54%|Next Earnings Date:Nov 11, 2026

Earnings Call SentimentPositive

The call emphasized a clear operational turnaround: comparable sales recovery, sizeable gross margin expansion (+530 bps to 67.9%), a meaningful increase in adjusted operating profit (GBP 160m versus GBP 26m), stronger free cash flow and reduced leverage (net debt/EBITDA 1.6x). Brand and category momentum (scarves, outerwear), successful marketing campaigns, e-commerce acceleration and delivered cost savings underpin confidence. Headwinds include a reported revenue decline (-2%), annual wholesale (-4%) and licensing (-9%) weakness, traffic/tourism pressures in some regions (Japan, parts of EMEA), modest AUR pressure and expected one-off restructuring costs (~GBP 5m in FY '27). On balance, the positive financial improvements, operational momentum and deleveraging outweigh the remaining challenges, and management is positioned to invest for further growth while targeting continued margin expansion.

Positive Updates

Return to Comparable Sales Growth

Comparable retail sales returned to growth: +2% for FY '26 with sequential momentum and a Q4 comp of +5%. Greater China and the Americas each delivered double-digit Q4 comps of +10%.

Negative Updates

Reported Revenue Slightly Down

Total revenue was stable at constant exchange rates but declined 2% on a reported basis for FY '26.

Company Guidance

Management guided that FY‑27 should deliver revenue growth and margin expansion, while flagging macro/geopolitical uncertainty; key modeling cues are: retail space broadly stable, wholesale expected to grow mid‑single‑digit % in H1, annualized cost savings of c. GBP 100m by FY‑27 (GBP 80m delivered in FY‑26) with FY‑27 adjusting items of ~GBP 5m (total one‑offs ~GBP 50m), capital expenditure c. GBP 120m, and a currency headwind of c. GBP 10m to both revenue and adjusted operating profit; the effective tax rate is guided at 27–30%. Management reiterated medium‑term ambitions of returning to ~GBP 3bn sales with c. 70% gross margin and high‑teens operating margin; FY‑26 financial anchors to note are gross margin 67.9% (+530bps), adjusted operating profit GBP 160m, adjusted EPS 15.2p, free cash flow GBP 141m and net debt/adjusted EBITDA 1.6x (vs 2.3x a year ago).

Burberry Group Financial Statement Overview

Summary

Revenue has declined and profitability has compressed from strong levels to very weak, while leverage has risen, but high gross margins and solid, improving cash generation provide some support, resulting in a below-average but stabilizing financial profile.

Income Statement

36Negative

Balance Sheet

40Negative

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.44B	2.42B	2.46B	2.97B	3.09B	2.83B
Gross Profit	1.33B	1.64B	1.54B	2.01B	1.84B	1.68B
EBITDA	516.49M	535.00M	428.00M	797.00M	1.01B	855.00M
Net Income	21.71M	21.00M	-75.00M	270.00M	490.00M	396.00M
Balance Sheet
Total Assets	3.09B	3.09B	3.43B	3.37B	3.69B	3.70B
Cash, Cash Equivalents and Short-Term Investments	671.03M	671.03M	813.00M	441.00M	1.03B	1.22B
Total Debt	1.52B	1.52B	1.92B	1.57B	1.49B	1.40B
Total Liabilities	2.15B	2.15B	2.51B	2.22B	2.15B	2.08B
Stockholders Equity	940.05M	940.05M	914.00M	1.15B	1.53B	1.61B
Cash Flow
Free Cash Flow	415.61M	417.68M	278.00M	294.00M	571.00M	534.00M
Operating Cash Flow	489.23M	491.87M	429.00M	506.00M	750.00M	699.00M
Investing Cash Flow	-115.05M	-115.85M	-127.00M	-231.00M	-153.00M	-167.00M
Financing Cash Flow	-458.87M	-466.46M	48.00M	-865.00M	-815.00M	-578.00M

Burberry Group Technical Analysis

Technical Analysis SentimentPositive

Last Price14.37

Price Trends

50DMA14.02Positive

100DMA14.45Negative

200DMA14.89Negative

Market Momentum

MACD0.04Positive

RSI51.31Neutral

STOCH13.81Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BURBY, the sentiment is Positive. The current price of 14.37 is above the 20-day moving average (MA) of 14.02, above the 50-day MA of 14.02, and below the 200-day MA of 14.89, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 51.31 is Neutral, neither overbought nor oversold. The STOCH value of 13.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BURBY.

Burberry Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

BURBY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPR	70Outperform	$23.08B	15.51	262.81%	1.43%	14.17%	956.15%
CPRI	68Neutral	$2.12B	10.46	214.43%	―	-13.93%	―
ZGN	65Neutral	$5.72B	41.95	7.60%	1.02%	10.78%	-15.63%
PVH	62Neutral	$4.16B	-25.32	-3.49%	0.17%	1.64%	-140.84%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BURBY	49Neutral	$5.09B	183.45	2.29%	―	3.33%	―
LANV	44Neutral	$98.60M	-0.87	42.92%	―	-23.34%	-12.90%

* Consumer Cyclical Sector Average

Performance Comparison

BURBY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
BURBY	Burberry Group PLC	14.11	-1.87	-11.68%
TPR	Tapestry	116.29	11.31	10.78%
CPRI	Capri Holdings	18.68	-2.04	-9.85%
PVH	PVH Corp	90.19	13.66	17.85%
ZGN	Ermenegildo Zegna Group	13.49	3.63	36.87%
LANV	Lanvin Group Holdings Limited	0.79	-1.29	-62.26%

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: Aug 19, 2026

Burberry Group AI Stock Analysis