Oddo BHF maintains its 'underperform' rating on Burberry shares, with a price target reduced from 1100 to 1080 pence.

As a reminder, Burberry reported sales of £2,968 million at the end of March, in line with Oddo BHF's expectations (£2,937 million). Full-year results were slightly less poor than expected, but the decline in Q4 retail was confirmed in double digits", reports the broker, who sees "no silver lining".

Chinese demand tended to move out of China in Q4, but taken as a whole it is estimated by Burberry to be down by 12% y/y, an unflattering score in view of the near 10% increase posted for the same quarter by LVMH, the analyst points out.

Against this backdrop, Burberry expects a "very significant" decline in wholesale sales in H1 25 to almost -25%, and sees no improvement in the trend for retail sales at the start of Q1 compared with Q4.

Oddo has therefore reduced its EBIT forecast for 2025 by 10%, for 2026 by 9% and for 2027 by 7%.

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