Burberry Group (LON:BRBY) Posts Quarterly Earnings Results

Burberry Group (LON:BRBY) released its quarterly earnings data on Thursday. The company reported GBX 15.20 EPS for the quarter, Digital Look Earnings reports. The company had revenue of GBX 242 billion during the quarter. Burberry Group had a negative return on equity of 2.99% and a negative net margin of 1.12%.

Here are the key takeaways from Burberry Group’s conference call:

• Burberry said it returned to comparable sales growth in FY2026, ending the year at +5% in Q4, with especially strong momentum in Greater China and the Americas.
• Gross margin improved sharply to 67.9% as the company benefited from a better sales mix, more full-price selling, and lower markdowns after inventory reset actions.
• Adjusted operating profit rose to GBP 160 million from GBP 26 million last year, while free cash flow improved to GBP 141 million and leverage fell to 1.6x net debt/EBITDA.
• Management highlighted strong brand momentum in outerwear and scarves, plus early signs that growth is extending into leather goods, knitwear, and other categories.
• For FY2027, Burberry expects revenue growth and margin expansion, but cautioned that the macro and geopolitical backdrop remains uncertain; it also reiterated plans for about GBP 100 million of annualized cost savings and around GBP 120 million of capex.

Burberry Group Stock Performance

Burberry Group stock traded down GBX 79.50 during mid-day trading on Thursday, hitting GBX 1,083. 2,906,204 shares of the company’s stock traded hands, compared to its average volume of 25,667,338. The company has a debt-to-equity ratio of 173.32, a current ratio of 1.88 and a quick ratio of 1.63. The stock has a market cap of £3.88 billion, a price-to-earnings ratio of -150.42, a P/E/G ratio of 1.66 and a beta of 0.68. The firm has a 50 day simple moving average of GBX 1,111.86 and a two-hundred day simple moving average of GBX 1,181.11. Burberry Group has a fifty-two week low of GBX 939.20 and a fifty-two week high of GBX 1,376.50.

Insiders Place Their Bets

In other news, insider Stella King acquired 608 shares of the stock in a transaction on Friday, March 20th. The shares were purchased at an average price of GBX 1,024 per share, for a total transaction of £6,225.92. 0.54% of the stock is owned by insiders.

Analysts Set New Price Targets

Several equities research analysts have issued reports on BRBY shares. Barclays raised Burberry Group to an “overweight” rating and raised their price target for the company from GBX 1,340 to GBX 1,450 in a report on Tuesday, January 27th. UBS Group reaffirmed a “buy” rating and set a GBX 1,410 price target on shares of Burberry Group in a report on Monday. Citigroup raised their price target on Burberry Group from GBX 1,570 to GBX 1,590 and gave the company a “buy” rating in a report on Monday, January 26th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a GBX 1,400 price target on shares of Burberry Group in a report on Thursday, January 22nd. Finally, Berenberg Bank downgraded Burberry Group to a “hold” rating and set a GBX 1,080 price target for the company. in a report on Tuesday, May 5th. Six analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Burberry Group has a consensus rating of “Hold” and a consensus target price of GBX 1,293.33.

Burberry Group Company Profile

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. It 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.