Burberry (AO) | Buy | Mixed bag

研报英文原文证据摘录

Burberry (AO) | Buy | Mixed bag

News comment

Release date: 14 May 2026

Charles-Louis Scotti

Head of Luxury Goods

Buy +33 1 70 98 85 16Burberry cscotti@keplercheuvreux.com

European SMID SelectedUnited Kingdom | Luxury goods Beta Profile: MCap: GBP4.2bn List

Target Price: 1500p Bloomberg: BRBY LN Reuters: BRBY.L

Current Price: 1162.50p Free float 100%

Up/downside: 29.0% Avg. daily volume (GBPm) 2,138.2

YTD abs performance -8.4% Market data: 13 May 2026

52-week high/low (GBP) 1371.50/961.80

Mixed bag

Key points:

The CSSG came in in-line with expectations with a beat in Americas and Greater China, offset by APAC and EMEIA.

Gross profit and EBIT, adj. beat consensus expectations but net profit missed amid higher taxes and financial expenses.

The FCF generation was solid driving deleveraging. The outlook points to further top-line growth and margin improvement.

The management is hosting a presentation to discuss FY26 results today at 09.30 BST / 10.30 CET (link here to register).

FY sales in-line, beat on EBIT but miss bottom line; solid FCF and deleveraging

FY sales came in at GBP2,420m, down 2% reported and flat at cFX. This is in line with consensus expectations. FY CSSG stood at

+2%, including +5% in Q4, accelerating sequentially vs. Q3 (+3%) and Q2 (+2%) and in-line with consensus.

The gross profit stood at GBP1,643m, up 7% YOY reflecting a 540bps improvement in the gross margin. This is 2% above street

estimates and 160bps higher on margin driven by higher quality of sales and a recovery after FY 2025 inventory reset.

The EBIT, adj. was GBP160m, up strongly vs. GBP26m last year and 5% above consensus at GBP153m. This reflects a 6.6% margin

up 560bps YOY or 30bps above consensus, despite lower-than-anticipated one-off costs related to the transformation plan.