Burberry: Model update: Estimates largely unchanged post Q1 trading update

Research evidence excerpt

Burberry: Model update: Estimates largely unchanged post Q1 trading update

C A Z E N O V E Europe Equity Research

17 July 2026

Burberry Underweight

BRBY.L, BRBY LN

Model update: Estimates largely unchanged post Q1 Price (16 Jul 26):1,121p

trading upate Price Target (Dec-27):980p

We update our model following the release of the Q1 27 trading update this European Luxury & Sporting Goods

ACmorning (see our first take). We make marginal changes to our estimates (+1%), Chiara Battistini

mainly banking in the new wholesale and FX guidance as well as the comments (39-02) 8895-2700

from the call on profitability phasing between H1 and H2 27. On FY27 margin chiara.x.battistini@jpmorgan.com

phasing, management guided for: 1) H1 gross margin to be slightly down and H2 J.P.(AsiaMorganPacific)SecuritiesLimited plc/ J.P. Morgan Securities

gross margin to be higher than H1 due to seasonality; 2) higher opex towards the

Wendy Liu

end of H1 due to increased investments in consumer-facing activities ahead of the (44-20) 3493-9733

peak trading season, leading to a higher H1 opex move yoy than H2 (as guidance wendy.liu@jpmorgan.com

for opex to be flat in the year was reiterated). While our FY27 estimates are broadly J.P. Morgan Securities plc

in line with consensus, we remain around 2%/10% below for FY28 sales/EBIT and Apurva Vishwaraj

around 5%/20% below FY29 sales/EBIT consensus, as we continue to see high apurva.vishwaraj@jpmchase.com

execution risk on building on the turnaround and as we think opex will need to also J.P. Morgan Securities plc

accelerate to support the top-line improvement. Hence, with ongoing downside Victoria Saden

risk to estimates in our view, we remain Underweight. Regarding the broader read- (44-20) 3493-0435

victoria.saden@jpmorgan.com