While maintaining its 'hold' recommendation on Burberry, Stifel has cut its target price from 1050 to 800 pence, in the wake of a reduction in its operating profit projections for 2025 and 2026 by 68% and 42% respectively.
Earnings revisions still need to stabilize for the share to find a floor", warns the broker, following the change of CEO at the head of the British clothing house last week.
According to Stifel, the strategy to make Burberry a "more democratic and inclusive" brand should result in a "stronger entry-level offer, but in a context of authentic luxury".
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Burberry Group plc specializes in the design, manufacturing and marketing of top-of-the-range clothes and accessories. Net sales break down by activity as follows:
- retail distribution (84.3%): activity conducted, at the end of March 2025, through a network of 455 stores distributed between company-owned stores (229; Burberry name), concession stores (139), franchised stores (33) and other (54);
- wholesale distribution (13%);
- licensed sale (2.7%).
Net sales (not including licensed sale) break down by family of products between accessories (35.1%), men's clothing (30.6%), ladies clothing (30%), and children's clothing (4.3%).
Net sales (not including licensed sale) are distributed geographically as follows: Europe/Middle East/India/Africa (35.2%), Asia/Pacific (43.5%) and Americas (21.3%).
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Investor
Investor
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Global
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ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
