Burberry: Held in check

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Burberry: Held in check

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Burberry

Held in check

Reiterate Rating: UNDERPERFORM | PO: 990.00 GBp | Price: 1,048 GBp

In the wait and see mode - again 21 July 2026

Burberry reported 1Q27 retail revenues £455m, +4% organic, inline with 4Q26. Burberry Equity

now guides for high-single digit wholesale growth in 1H27 (from mid-single digit) and

neutral FX impact on EBIT (from £10m headwind, however FX moved adversely since,

Key Changessee Exhibit 12). We move our FY27-29E EBIT by +1% and are now 7-12% below

consensus for next three years. This year Burberry will need to continue to deliver on (GBp) Previous Current

tougher comps, repeating the dynamic of FY26 and leaning into its seasonality, see Back 2027E EPS 33.43 33.78

to Burberry, needing time to showcase execution also on profit. On our numbers 2028E EPS 48.01 48.37

Burberry trades at 27x next 12m P/E and 15x FY30E P/E, i.e. recovered earnings. This is 2029E EPS 60.95 61.31

not cheap and without positive EPS revisions the stock could struggle to re-rate, likely 2027E DPS 16.71 16.89

underperforming peers amid improving industry backdrop, see Stealth wealth.

Daria Nasledysheva >>

1Q27 SSSG +5% driven by Americans and Chinese ResearchMLI (UK) Analyst

Burberry 1Q27 SSSG stood at +5%, inline with expectations. Americas (+12%, +2ppt +44 20 7996 1087

daria.nasledysheva@bofa.com

from 4Q) and Greater China (+9%, -1ppt from 4Q) were fastest-growing regions, while

Ashley Wallace >>

EMEIA declined -3%. Ex-Middle East, EMEIA would have been -1%. Korea slowed to Research Analyst

+11% cFX from +13% in 4Q, Japan remained negative at -2% despite a 14ppt easier Merrill Lynch (Australia)

+61 2 9226 5070

comp. By cluster: Chinese remained at mid-single digit in 1Q27, inline with previous ashley.d.wallace@bofa.com