Burberry Conf call feedback: Confident on brand trajectory

研报英文原文证据摘录

Burberry Conf call feedback: Confident on brand trajectory

Global Research

17 July 2026ab

First Read

EquitiesBurberry

Conf call feedback: Confident on brand United Kingdom

trajectory Clothing & Fabrics

12-month rating Buy

12m price target 1,425p

No underlying downgrade to profits confirmed

One of the key negatives from an otherwise good Q1 FY27 print, has been the profit

phasing commentary combined with concerns around an underlying downgrade to Price (16 Jul 2026) 1,121p

profits amid reiteration of consensus EBIT against better wholesale guidance and better RIC: BRBY.L BBG: BRBY LN

FX. However, on the call, the CFO confirmed that there is "absolutely no underlying

Trading data and key metrics

downgrade" to profits, suggesting rather that management preferred to stay

conservative at this stage of the year. Asked about the phasing of gross margin for the 52-wk range 1,372p-1,005

year, management explained that this reflects a return to more normalised seasonality, Market cap. £4.02b/US$5.41b

including the usual higher provisions taken ahead of key selling seasons. As a result, Shares o/s 358m (ORD)

gross margin in H1 could be slightly down year-on-year (vs. consensus +60bps). In Free float 100%

addition, the CFO highlighted that H1 OPEX growth may be somewhat higher year-on- Avg. daily volume ('000) 1,814

year, reflecting investments being made ahead of the H2 trading period. All in all, we Avg. daily value (m) £20.4

believe management sounded confident on profit expectations. Common s/h equity (03/27E) £1.10b

P/BV (03/27E) 3.6x

Quality of growth continues to improve Net debt to EBITDA (03/27E) 1.1x

While like-for-like sales were in line with consensus expectations (+5% in Q1),

EPS (UBS, diluted) (GBX)