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Burberry (BRBY) AI Stock Analysis
Burberry
(LSE:BRBY)
The score is held back primarily by weakened financial performance (thin profitability and higher leverage) and bearish technicals (below key moving averages with negative MACD). Earnings-call commentary and FY27 guidance are a constructive offset, but valuation is a significant headwind given the very high P/E and no stated dividend yield.
Burberry (BRBY) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 3.77B
- Dividend Yield
- ―
- Average Volume (3M)
- 2.12M
- Price to Earnings (P/E)
- 183.4
- Beta (1Y)
- 1.68
- Revenue Growth
- -1.67%
- EPS Growth
- ―
- Country
- UK
- Employees
- 7,299
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Luxury Goods
Burberry Business Overview & Revenue Model
Company Description
Burberry Group plc, together with its subsidiaries, engages in manufacturing, retail, and wholesale of luxury goods under the Burberry brand in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. The company operates in two se...
How the Company Makes Money
Burberry primarily makes money by selling Burberry-branded luxury goods across multiple categories and channels. (1) Retail (direct-to-consumer): A major portion of revenue is generated through directly operated Burberry stores and concessions in dep...
Burberry Earnings Call Summary
The call conveyed a materially improved financial and operational performance: strong margin expansion (up 530 bps), a large swing in adjusted operating profit (GBP 26m to GBP 160m), improved cash flow and reduced leverage, plus clear customer and product momentum (notably in Greater China, the Americas, scarves and outerwear). Challenges include traffic headwinds, licensing and wholesale softness, regional tourism declines, and near‑term restructuring costs, but management provided concrete progress and FY27 guidance for continued revenue and margin expansion. Overall, positives (profitability, margin, cash generation, brand momentum, and strategic initiatives) outweigh the remaining operational and macro challenges.
Q4-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Guidance for FY27 reiterated an expectation of revenue growth and margin expansion while remaining mindful of macro uncertainty, with retail space to be broadly stable; wholesale is expected to grow mid‑single‑digit in H1; annualized cost savings of around GBP 100m (GBP 80m delivered in FY26) with adjusting items of c. GBP 5m in FY27 (bringing total adjusting items to ~GBP 50m); capital expenditure of c. GBP 120m; a currency headwind of about GBP 10m to both revenue and adjusted operating profit; and an effective tax rate of 27–30%. For context, FY26 delivered a 67.9% gross margin (+530bps), adjusted operating profit of GBP 160m (6.6% margin), adjusted EPS of 15.2p, free cash flow of GBP 141m, and net debt/adjusted EBITDA of 1.6x, underpinning management’s medium‑term ambition of returning to c. GBP 3bn sales with ~70% gross margin and high‑teens operating margin.
Burberry Financial Statement Overview
Summary
Overall fundamentals are in a rebuild phase: income statement profitability has deteriorated sharply versus 2022–2024 (only a thin profit in 2026), and balance-sheet leverage remains elevated, reducing flexibility. The key offset is comparatively resilient operating and free cash flow, which provides cushion despite volatile growth.
Income Statement
49NeutralBalance Sheet
45NeutralCash Flow
63Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.42B | 2.42B | 2.46B | 2.97B | 3.09B | 2.83B |
| Gross Profit | 1.32B | 1.27B | 1.54B | 2.01B | 1.84B | 1.68B |
| EBITDA | 512.00M | 528.00M | 428.00M | 816.00M | 1.02B | 858.00M |
| Net Income | 21.00M | 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 | 671.00M | 671.00M | 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 | 940.00M | 940.00M | 914.00M | 1.15B | 1.53B | 1.61B |
Cash Flow | ||||||
| Free Cash Flow | 411.00M | 370.00M | 278.00M | 294.00M | 571.00M | 534.00M |
| Operating Cash Flow | 484.00M | 484.00M | 429.00M | 506.00M | 750.00M | 699.00M |
| Investing Cash Flow | -114.00M | -114.00M | -127.00M | -231.00M | -153.00M | -167.00M |
| Financing Cash Flow | -459.00M | -459.00M | 48.00M | -865.00M | -815.00M | -578.00M |
Burberry Peers Comparison
Overall Rating
GB:WOSG73Outperform
GB:MKS62Neutral
GB:FRAS61Neutral
GB:MUL56Neutral- GB:BRBY50Neutral
GB:DOCS47Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:WOSG | 73Outperform | GBP 1.74B | 17.74 | 16.31% | ― | 10.68% | 86.68% |
| GB:MKS | 62Neutral | GBP 8.52B | 33.47 | 8.86% | 1.02% | 25.02% | -13.12% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| GB:FRAS | 61Neutral | GBP 3.85B | 10.49 | 15.67% | ― | 8.13% | 28.46% |
| GB:MUL | 56Neutral | GBP 157.86M | -18.73 | 78.71% | ― | 4.22% | 74.45% |
| GB:BRBY | 50Neutral | GBP 3.80B | 183.45 | 2.29% | ― | -1.67% | ― |
| GB:DOCS | 47Neutral | GBP 627.97M | 26.34 | 6.89% | 3.89% | -2.88% | 425.53% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:BRBY | Burberry Group plc | 1053.00 | -162.00 | -13.33% | |
| GB:MKS | Marks And Spencer (Uk) | 412.00 | 28.01 | 7.29% | |
| GB:MUL | Mulberry Group plc | 225.00 | 132.50 | 143.24% | |
| GB:FRAS | Frasers Group Plc | 900.50 | 210.50 | 30.51% | |
| GB:WOSG | Watches Of Switzerland Group Plc | 745.00 | 345.00 | 86.25% | |
| GB:DOCS | Dr. Martens Plc | 65.60 | -21.03 | -24.28% |
Burberry Corporate Events
Burberry Updates Share Capital and Voting Rights After Sharesave Issuance
NeutralBurberry Group PLC has issued and allotted 28 new ordinary shares of 0.05 pence each under its Sharesave Plan, with the shares already covered by an existing block admission to trading on the London Stock Exchange. Following this minor issuance, the...
Burberry Tightens Executive Pay Link to Long-Term Performance With New Share Awards
PositiveBurberry Group plc is a British luxury fashion house known for its heritage trench coats, ready-to-wear clothing, accessories and fragrances, and it operates in the global premium fashion market targeting high-end consumers. The group competes with o...
Burberry Adds Former Pandora Chief Alexander Lacik to Board
PositiveBurberry has appointed Alexander Lacik as an Independent Non-Executive Director and member of its Nomination Committee, effective 1 September 2026. The move brings to the board a seasoned executive with deep experience in transforming and scaling glo...
Burberry CFO Kate Ferry Receives Scaled-Back Share Award Vesting
NeutralBurberry has disclosed that Chief Financial Officer Kate Ferry received 39,198 ordinary shares following the vesting of a conditional share award granted in July 2023 under the Burberry Share Plan 2020. The award was contingent on continued employmen...
Burberry publishes FY 2027 Q1 trading update and hosts investor webcast
NeutralBurberry Group PLC said its trading update for the first quarter of fiscal year 2027 has been published, providing investors with the latest snapshot of performance for the British luxury fashion house. The document is accessible via the London Stock...
Burberry AGM Resolutions Passed Amid Shareholder Pushback on Pay Plan
NeutralBurberry reported that all resolutions at its 2026 Annual General Meeting were passed, including the re-election and election of directors, the reappointment of Ernst & Young as auditor, and authorities to allot shares, disapply pre-emption right...
Burberry Updates Share Capital and Voting Rights After Sharesave Issuance
NeutralBurberry has issued and allotted 1,875 ordinary shares of 0.05 pence each under its Sharesave Plan, with the shares released on various dates between 4 June and 18 June 2026 using an existing block admission on the London Stock Exchange. Following th...
Burberry CEO and CFO Increase Stakes with Significant Share Purchases
PositiveBurberry has disclosed that its chief executive officer, Joshua Schulman, purchased 56,936 ordinary shares in the company on 25 June at a price of 1,089.1083 pence per share, in a transaction valued at just over £620,000. On the same day, chief...
Burberry Director Danuta Gray Takes New Board Roles at Lloyds and Scottish Widows
NeutralBurberry has announced that independent non-executive director Danuta Gray has been appointed a non-executive director of Lloyds Banking Group from 1 July 2026 and will sit on its Responsible Business Committee. On the same date, she will also become...
Burberry Updates Share Capital and Voting Rights After Sharesave Issuance
NeutralBurberry Group PLC has issued and allotted 3,179 ordinary shares of 0.05 pence each under its Sharesave Plan, with the shares issued on various dates in May 2026 and drawn from an existing block admission to trading on the London Stock Exchange. Foll...
Burberry Files 2025/26 Annual Report and Sets July Date for AGM
NeutralBurberry Group has published its Annual Report and Accounts for the financial year ended 28 March 2026, along with the Notice of its 2026 Annual General Meeting and the associated proxy form, making all documents available to shareholders online and...
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