Burberry Group plc — Financial Overview, Stock Price, Market Cap

Financial Performance

5Y price score: (63)

10Y return: 5.8%

DATE RANGE:

GBp Per
Share

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976.0

52-week range

1376.5

1,047.5

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Required return / cost of capital

FCFF terminal growth rate

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

11 %

Dividend Yield TTM

Market cap

3,752

Price / Earnings TTM

182.5

Price / Book TTM

PEG TTM

1.4

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

(18.1) %

(37.5) %

5.8 %

Free cash flow per share growth

32.4 %

(12.2) %

50.7 %

Earnings per share growth

127.8 %

(93.7) %

(91.6) %

Founded: 1,856

Employees: 9,336

Business Summary: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.

Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q4 (May 14, 2026)

1) Strategy & Leadership
- Burberry has made significant progress in its Burberry Forward transformation, returning to positive comparable sales growth with a 5% increase in Q4.
- Strong performance was noted in Greater China and the Americas, both achieving double-digit comp growth in Q4.
- The brand has successfully attracted a new generation of Gen Z customers, enhancing its cultural relevance.
- The company is focused on delivering sustainable, profitable growth while maintaining discipline in operations and inventory management.
- Burberry's 170th anniversary is being leveraged for brand storytelling and customer engagement through various campaigns.

2) Financial & Segment Results
- Total revenue for FY '26 was stable at constant exchange rates but declined 2% on a reported basis.
- Retail revenue grew 1% with a 2% comparable sales growth for the year, while wholesale revenue decreased by 4%.
- Adjusted operating profit improved significantly to GBP 160 million from GBP 26 million the previous year, with a gross margin increase of 530 basis points to 67.9%.
- Free cash flow improved to GBP 141 million from GBP 65 million, and net debt to adjusted EBITDA decreased to 1.6x from 2.3x YoY.
- The Americas and Greater China were key growth drivers, with Q4 comp growth of 10% in both regions.

3) Problems / Headwinds
- The company faced challenges with tourism in EMEA, which remained flat for the year and declined 2% in Q4.
- Licensing revenue declined by 9% due to destocking and longer lead times for licensees to align with the Burberry Forward strategy.
- The geopolitical and macroeconomic environment remains uncertain, potentially impacting consumer confidence moving forward.

4) Operational or Product Plans
- Burberry plans to continue investing in marketing, targeting a high single-digit percentage of sales, while also focusing on improving product offerings and store productivity.
- The company is enhancing its clienteling initiatives to better engage new customers and improve retention.
- Plans for FY '27 include stable retail space, mid-single-digit growth in wholesale revenue, and a capital expenditure of approximately GBP 120 million.
- The brand is expanding its product categories, particularly in cashmere and outerwear, and will introduce new category destinations in stores.

5) Guidance & Outlook / Investor Angle
- For FY '27, Burberry expects continued revenue growth and margin expansion, despite potential currency headwinds of GBP 10 million.
- The effective tax rate is projected to be between 27% and 30%.
- The company aims to reinstate dividends in the future, emphasizing the importance of maintaining firepower for investments in the Burberry Forward strategy.

Bottom line: Burberry is on a positive trajectory with improved sales, enhanced brand relevance, and a strong focus on sustainable growth. The strategic initiatives are yielding results, particularly in key markets, positioning the company well for future profitability and shareholder value creation.