Burberry Group (LON:BRBY) Posts Earnings Results

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

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 Down 6.8%

Burberry Group stock traded down GBX 79.50 on Thursday, hitting GBX 1,083. 2,906,204 shares of the stock traded hands, compared to its average volume of 25,667,338. Burberry Group has a 1 year low of GBX 939.20 and a 1 year high of GBX 1,376.50. The firm has a market cap of £3.88 billion, a P/E ratio of -150.42, a price-to-earnings-growth ratio of 1.66 and a beta of 0.68. The company has a current ratio of 1.88, a quick ratio of 1.63 and a debt-to-equity ratio of 173.32. The business’s fifty day simple moving average is GBX 1,111.86 and its 200 day simple moving average is GBX 1,181.11.

Analysts Set New Price Targets

BRBY has been the topic of a number of research analyst reports. Berenberg Bank downgraded shares of Burberry Group to a “hold” rating and set a GBX 1,080 price objective on the stock. in a research report on Tuesday, May 5th. Barclays raised shares of Burberry Group to an “overweight” rating and lifted their target price for the company from GBX 1,340 to GBX 1,450 in a research note on Tuesday, January 27th. UBS Group reiterated a “buy” rating and set a GBX 1,410 price target on shares of Burberry Group in a research report on Monday. Citigroup increased their price target on shares of Burberry Group from GBX 1,570 to GBX 1,590 and gave the stock a “buy” rating in a research note on Monday, January 26th. Finally, Deutsche Bank Aktiengesellschaft cut their price objective on Burberry Group from GBX 1,550 to GBX 1,480 and set a “buy” rating on the stock in a research report on Wednesday, April 1st. Six investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Burberry Group currently has a consensus rating of “Hold” and a consensus target price of GBX 1,293.33.

Insider Activity

In other Burberry Group news, insider Stella King purchased 608 shares of the firm’s stock in a transaction that occurred on Friday, March 20th. The stock was bought at an average cost of GBX 1,024 per share, for a total transaction of £6,225.92. 0.54% of the stock is currently owned by insiders.

About Burberry Group

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.