Burberry (1K) | Buy | Turnaround momentum building further

研报英文原文证据摘录

Burberry (1K) | Buy | Turnaround momentum building further

#EstimatesRevision #HighConviction

Release date: 21 May 2026

Company research

Buy Burberry

European SMID Selected

United Kingdom | Luxury goods Beta Profile: MCap: GBP4.0bn List

Target Price: 1,500.0p Change in TP: none Bloomberg: BRBY LN Reuters: BRBY.L

Current Price: 1,130.0p Change in Sales: -0.5% 26E/-0.8% 27E Free float 100.0%

Avg. daily volume (GBPm) 23.3 Up/downside: 32.7% Change in Adj EBIT: 2.3% 26E/1.3% 27E

YTD abs performance -11.0%

Market data: 20 May 2026 Change in Adj. EPS: -4.1% 26E/-0.3% 27E

52-week high/low (p) 1,371.5/961.8

Turnaround momentum building further Price performance

Why this report?

Burberry’s turnaround continues to gain traction, with CSSG sequentially 1,400

accelerating for four consecutive quarters. Momentum is particularly strong 1,3501,300

in the Americas and China, where brand activations and pricing recalibration 1,250

successfully re-engaged younger consumers. Improved sales quality, lower 1,2001,150

inventory overhang and the ramp-up of the cost-saving plan support our 1,100

gross margin and EBIT recovery scenario. A strong FY25/26 exit rate, solid 1,0501,000

summer campaign start and easing wholesale/licensing headwinds reinforce 950

May 25 Nov 25 May 26

confidence in a return to MSD CSSG growth and EBIT margins approaching

10% this year. We reiterate our Buy rating and 1,500p TP. Price Stoxx Europe 600 (rebased)

Key findings

▪Burberry’s turnaround under the new management and the Burberry Forward

strategy continues to gain traction, translating into a sequential acceleration in FY to 31/03 (GBP) 03/27E 03/28E 03/29E

CSSG for four consecutive quarters and a return to MSD growth in CY Q1. Sales (m) 2,535 2,675 2,827