Burberry Group (LON:BRBY) Announces Quarterly Earnings Results

Burberry Group (LON:BRBY) posted its quarterly earnings results on Thursday. The company reported GBX 3.50 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Burberry Group had a return on equity of 2.29% and a net margin of 0.87%. The business had revenue of GBX 109.80 billion for the quarter.

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

• First-half comparable retail sales rose 4% and revenue increased 6% to £1.1 billion. Adjusted operating profit more than tripled to £62 million from £19 million, with adjusted operating margin expanding 390 basis points to 5.7%.
• Gross margin increased 40 basis points, supported by stronger full-price sales, but also benefited from a one-off supply-chain rebate. Excluding that item, underlying gross margin was down approximately 10 basis points; Burberry expects expansion in the second half and full year.
• Wholesale revenue grew 17%, ahead of guidance, as partners reordered and expressed confidence in the brand. Outerwear grew by double digits, while growth also extended to leather goods and other product categories.
• Performance varied by region: the Americas grew 12% and Greater China 7%, while EMEIA declined 2%, reflecting weaker tourist activity and traffic, particularly in outlet stores. Management also acknowledged an uncertain luxury-market backdrop.
• Management said it expects further progress toward revenue growth and margin expansion, while remaining comfortable with the midpoint of analyst consensus. Cost discipline is expected to continue, with flat operating expenses targeted for FY 2027; the company also reported leverage improving to 1.7 times.

Burberry Group Trading Up 1.0%

BRBY opened at GBX 1,192.50 on Friday. The business has a 50 day simple moving average of GBX 1,052.73 and a two-hundred day simple moving average of GBX 1,102.32. The firm has a market capitalization of £4.27 billion, a price-to-earnings ratio of 202.12, a PEG ratio of 1.66 and a beta of 0.70. The company has a debt-to-equity ratio of 162.02, a current ratio of 1.87 and a quick ratio of 1.63. Burberry Group has a one year low of GBX 953.40 and a one year high of GBX 1,376.50.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on BRBY. Berenberg Bank reiterated a “hold” rating and issued a GBX 1,080 price objective on shares of Burberry Group in a research report on Thursday, July 23rd. Citigroup cut their target price on shares of Burberry Group from GBX 1,560 to GBX 1,510 and set a “buy” rating on the stock in a report on Wednesday, August 12th. Jefferies Financial Group restated an “underperform” rating and issued a GBX 940 target price on shares of Burberry Group in a report on Thursday. Finally, Royal Bank Of Canada downgraded shares of Burberry Group to a “sector perform” rating and decreased their target price for the stock from GBX 1,400 to GBX 1,200 in a research note on Tuesday, September 22nd. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of GBX 1,256.25.

Latest Burberry Group News

Investors following BRBY have been watching these news items:

• Positive Sentiment: Burberry reported a sharp improvement in first-half results: adjusted operating profit rose about 225% to £62 million, and the company returned to profit. Reports also point to faster sales growth despite a difficult luxury-goods market. Burberry adjusted operating profit jumps 225% as sales growth gathers pace
• Neutral Sentiment: BRBY moved above its 200-day moving average, a potentially supportive technical signal, though it does not establish whether the shares are undervalued. Burberry Group Stock Breaks Above 200 Day Moving Average
• Negative Sentiment: Jefferies reaffirmed its “underperform” rating and set a GBX 940 price target, indicating the broker sees downside from the share’s recent level. Jefferies rating and price target

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.