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Burberry Group PLC (GB:BRBY)
LSE:BRBY

Burberry (BRBY) AI Stock Analysis

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GBBurberry
(LSE:BRBY)
68Neutral
Burberry's stock performance is bolstered by strong technical momentum and healthy cash flow generation, but faces challenges from weakened profitability and high valuation. The company's ability to generate cash and pay dividends is a positive, yet the high P/E ratio indicates that the stock may be overvalued, posing a risk if growth expectations are not met.
Positive Factors
Financial Performance
Burberry reported Q3 LFL -4%, well ahead of company-collated consensus of -12%.
Strategic Initiatives
Burberry is benefitting both from an improving backdrop, especially in the US, and from the notable step up in company-specific initiatives under new CEO Schulman.
Negative Factors
Inventory Management
Free cash flow was significantly negative in 1H25 with an inventory built-up that needs to be addressed in 2H25.

Burberry (BRBY) vs. S&P 500 (SPY)

Burberry Business Overview & Revenue Model

Company DescriptionBurberry Group plc (BRBY) is a British luxury fashion house known for its distinctive tartan pattern and iconic trench coats. The company primarily operates in the fashion and retail sectors, offering a wide range of products, including clothing, accessories, fragrances, and beauty products. Burberry is renowned for its commitment to quality, craftsmanship, and innovation, blending its rich heritage with modern design and technology.
How the Company Makes MoneyBurberry makes money through a diversified revenue model primarily driven by the sale of its luxury products. The company's key revenue streams include retail sales from its physical stores and e-commerce platforms, wholesale distribution to department stores and specialty retailers, and licensing agreements for products such as fragrances and eyewear. Burberry also benefits from strategic partnerships and collaborations that enhance its brand visibility and appeal. Factors contributing to its earnings include its global presence, strong brand identity, and focus on digital innovation, which helps attract a broad customer base and adapt to changing market trends.

Burberry Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
2.97B3.09B2.83B2.34B2.63B
Gross Profit
2.01B1.84B1.68B1.37B1.44B
EBIT
418.00M640.00M514.00M416.40M467.80M
EBITDA
828.00M1.02B858.00M693.10M525.90M
Net Income Common Stockholders
270.00M490.00M396.00M376.00M121.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
441.00M1.03B1.22B1.26B928.90M
Total Assets
3.37B3.69B3.70B3.50B3.29B
Total Debt
1.57B1.49B1.40B1.36B1.47B
Net Debt
1.13B460.00M179.00M100.80M538.20M
Total Liabilities
2.22B2.15B2.08B1.94B2.07B
Stockholders Equity
1.15B1.53B1.61B1.56B1.21B
Cash FlowFree Cash Flow
294.00M571.00M534.00M473.70M301.40M
Operating Cash Flow
506.00M750.00M699.00M591.40M455.80M
Investing Cash Flow
-231.00M-153.00M-167.00M-93.10M-154.10M
Financing Cash Flow
-865.00M-815.00M-578.00M-156.50M-260.20M

Burberry Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1079.50
Price Trends
50DMA
1071.77
Positive
100DMA
957.01
Positive
200DMA
862.37
Positive
Market Momentum
MACD
-4.63
Positive
RSI
46.56
Neutral
STOCH
62.64
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 1079.5 is below the 20-day moving average (MA) of 1125.57, above the 50-day MA of 1071.77, and above the 200-day MA of 862.37, indicating a neutral trend. The MACD of -4.63 indicates Positive momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 62.64 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBJD
77
Outperform
£3.97B12.3321.94%1.21%2.85%61.98%
GBMKS
70
Outperform
£7.60B14.9015.23%0.82%6.87%22.36%
68
Neutral
£3.87B101.5923.54%5.62%-15.48%-91.10%
68
Neutral
£2.57B8.7620.64%-6.82%-37.46%
67
Neutral
£1.38B20.8516.11%3.10%6.97%-14.59%
60
Neutral
$13.01B10.450.79%3.53%1.60%-22.47%
GBBOO
43
Neutral
£332.11M-96.36%-16.32%-202.39%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BRBY
Burberry
1,079.50
-133.16
-10.98%
GB:SMWH
WH Smith
1,083.00
-109.51
-9.18%
GB:BOO
boohoo group Plc
25.80
-8.09
-23.87%
GB:MKS
Marks and Spencer
376.60
138.01
57.84%
GB:JD
JD Sports Fashion
75.46
-40.66
-35.02%
GB:FRAS
Frasers Group
627.50
-172.50
-21.56%

Burberry Corporate Events

Regulatory Filings and Compliance
Burberry Updates Share Capital and Voting Rights
Neutral
Mar 3, 2025

Burberry Group PLC has announced its updated issued share capital as of 28 February 2025, consisting of 363,816,314 ordinary shares, with 4,639,220 held in Treasury. The total number of voting rights in the company is 359,177,094, which is crucial for shareholders to determine their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules.

Regulatory Filings and Compliance
Burberry Updates Share Capital and Voting Rights
Neutral
Feb 3, 2025

Burberry Group PLC announced that its issued share capital, as of January 31, 2025, consists of 363,816,314 ordinary shares, with 5,232,720 shares held in Treasury. This results in a total of 358,583,594 voting rights available, which is important for shareholders as it determines their notification requirements under the FCA’s regulations. This adjustment in voting rights may impact shareholder voting dynamics and regulatory compliance.

Business Operations and StrategyFinancial Disclosures
Burberry’s Strategic Transformation Amidst Sales Challenges
Neutral
Jan 24, 2025

Burberry has launched ‘Burberry Forward’ to enhance brand desirability and drive long-term growth, marked by successful campaigns like ‘It’s Always Burberry Weather.’ Despite a 4% decline in comparable store sales in the third quarter, with varied regional performances, Burberry remains focused on stabilizing its business and achieving sustainable growth. The company is confident about offsetting early losses with second-half results, but faces challenges due to currency headwinds and a challenging macroeconomic environment.

Burberry Addresses Shareholder Concerns Over Director’s Re-election
Jan 16, 2025

Burberry announced that more than 20% of shareholders voted against the re-election of Antoine de Saint-Affrique as a Director due to concerns about his numerous directorships potentially affecting his commitment to Burberry. Despite the initial opposition, the Board has expressed confidence in his capabilities but has revealed that Mr. de Saint-Affrique will retire from the Board in July 2025, effectively resolving the issue. The company remains committed to engaging with its shareholders and will continue to provide updates through its reports.

Burberry Updates Shareholder Voting Rights and Capital Structure
Jan 2, 2025

Burberry Group PLC has announced its updated voting rights and share capital information, as of December 31, 2024. The company’s total issued share capital consists of 363,816,314 ordinary shares, including shares held in treasury, which do not carry voting rights. The announcement clarifies that the total number of voting rights available to shareholders is 358,583,594, crucial for determining shareholder interests and compliance with FCA regulations. This update is essential for stakeholders to understand their influence on company decisions and align with regulatory requirements.

Burberry Grants Performance-Based Share Award to CEO Joshua Schulman
Dec 20, 2024

Burberry Group PLC announced a conditional share award as part of the recruitment package for its CEO, Joshua Schulman. This award comprises 392,366 shares and is performance-based, with vesting contingent upon achieving specific Total Shareholder Return thresholds, reflecting Burberry’s commitment to aligning executive compensation with company performance.

Burberry Announces Strategic Board Changes for 2025
Dec 18, 2024

Burberry Group PLC has announced significant upcoming changes to its Board of Directors. Stella King will join the Board as an independent Non-Executive Director and a member of the Nomination Committee starting April 2025, bringing her extensive experience from leadership roles in the Asia Pacific luxury market. Concurrently, Fabiola Arredondo and Antoine de Saint-Affrique will retire as Non-Executive Directors following the July 2025 AGM, marking a shift in the company’s governance that underscores Burberry’s focus on strengthening its market position in Asia. These transitions are expected to enhance Burberry’s strategic direction and engagement with luxury consumers in the Asia Pacific region.

Burberry Grants Shares to Key Executives Under Incentive Plan
Dec 12, 2024

Burberry Group PLC has announced changes in the shareholdings of its directors, as Joshua Schulman, Chief Executive Officer, and Kate Ferry, Chief Financial Officer, were granted 51 shares each at no cost under the company’s Share Incentive Plan. This announcement is part of a regular disclosure under the EU Market Abuse Regulation, reflecting Burberry’s commitment to transparency in its corporate governance practices.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.