Burberry (BRBY) AI Stock Analysis

• Market Cap: £4.01B
• Dividend Yield: 5.01%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 77.3
• Beta (1Y): 1.78
• Revenue Growth: -17.08%
• EPS Growth: -128.46%
• Country: UK
• Employees: 9,336
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.03
• Shares Outstanding: 359,178,560
• 10 Day Avg. Volume: 2,843,452
• 30 Day Avg. Volume: 1,954,483
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £1,306.82
• Price Target Upside: 14.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 48 Neutral
• Price Target: 1,132.00p ▼(-0.96% Downside)

Burberry faces significant challenges with declining revenue and profitability, reflected in a negative net income and high leverage. Technical analysis indicates bearish trends, and valuation metrics are unattractive due to negative earnings. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Strong Brand Identity

Burberry's strong brand identity, rooted in British heritage, supports its position in the luxury market, fostering customer loyalty and premium pricing.

Effective Cost Management

A strong gross profit margin indicates effective cost management, allowing Burberry to maintain profitability at the gross level despite revenue challenges.

Cash Flow Generation

Robust operating cash flow despite negative net income suggests Burberry's ability to generate cash, providing liquidity and financial flexibility.

Negative Factors

Declining Revenue

A significant decline in revenue indicates challenges in market demand or competitive positioning, affecting long-term growth prospects.

Negative Net Income

Negative net income reflects profitability issues, which can hinder reinvestment and growth, impacting long-term financial health.

Increased Leverage

Increased leverage raises financial risk, potentially limiting Burberry's ability to invest in growth opportunities and weather economic downturns.

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 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

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	2.46B	2.46B	2.97B	3.09B	2.83B	2.34B
Gross Profit	1.54B	1.54B	2.01B	1.84B	1.68B	1.37B
EBITDA	139.00M	428.00M	828.00M	1.02B	858.00M	693.10M
Net Income	-75.00M	-75.00M	270.00M	490.00M	396.00M	376.00M
Balance Sheet
Total Assets	3.43B	3.43B	3.37B	3.69B	3.70B	3.50B
Cash, Cash Equivalents and Short-Term Investments	813.00M	813.00M	441.00M	1.03B	1.22B	1.26B
Total Debt	1.92B	1.92B	1.57B	1.49B	1.40B	1.36B
Total Liabilities	2.51B	2.51B	2.22B	2.15B	2.08B	1.94B
Stockholders Equity	914.00M	914.00M	1.15B	1.53B	1.61B	1.56B
Cash Flow
Free Cash Flow	307.00M	278.00M	294.00M	571.00M	534.00M	473.70M
Operating Cash Flow	429.00M	429.00M	506.00M	750.00M	699.00M	591.40M
Investing Cash Flow	-129.00M	-127.00M	-231.00M	-153.00M	-167.00M	-93.10M
Financing Cash Flow	48.00M	48.00M	-865.00M	-815.00M	-578.00M	-156.50M

Burberry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1143.00
• 50DMA: Negative
• 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 Positive. The current price of 1143 is below the 20-day moving average (MA) of 1189.67, below the 50-day MA of 1222.67, and above the 200-day MA of 1042.41, indicating a neutral trend. The MACD of -28.21 indicates Positive momentum. The RSI at 45.61 is Neutral, neither overbought nor oversold. The STOCH value of 44.26 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
JD	74 Outperform	4.41B	9.17	16.77%	1.13%	8.69%	-9.09%
MKS	72 Outperform	7.10B	24.10	10.06%	1.00%	5.96%	-33.04%
NXT	72 Outperform	13.85B	17.75	44.99%	1.93%	9.74%	0.92%
BTRW	57 Neutral	5.26B	27.27	―	4.59%	33.83%	15.11%
BRBY	48 Neutral	£4.01B	77.34	-7.28%	5.01%	-17.08%	-128.46%
ASC	46 Neutral	334.77M	-1.18	-64.97%	―	-15.86%	-18.46%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Burberry Corporate Events

Burberry Director Increases Stake with Share Purchase

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.

Burberry Updates Share Capital and Voting Rights

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.

Burberry Updates Share Capital and Voting Rights

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.