Burberry Share Price (LON:BRBY) Hit’s New 52-Week High as BlackRock Increases Holding – What Next?

Burberry Group share price (LON:BRBY) has hit a new 52-week high today, gaining 3.2% into the afternoon, and hitting 1,255.50p intraday. This marks a significant turnaround for the iconic British luxury brand, whose shares have more than doubled from their 52-week low of 555.61p.

This marks a breakout from the highs achieved earlier this year, and looks to have pulled Burberry out of the downward channel that had persisted since 2023.

The recent performance reflects a potent cocktail of strategic initiatives, leadership changes, and cost-cutting measures that have resonated positively with the market, alongside the expansion of BlackRock's holdings to more than 5% of the firm. However, analysts are divided on whether this rally is sustainable, given the company's recent losses and high valuation.

The catalyst for this resurgence appears to be multi-faceted. Firstly, the appointment of Joshua Schulman as CEO in July 2024 has been hailed as a pivotal move. Schulman, a seasoned veteran with experience at Gucci, Yves Saint Laurent, Jimmy Choo, and Coach, has been tasked with revitalizing the 168-year-old brand. His strategy has focused on refocusing Burberry’s product offerings, with a renewed emphasis on its classic outerwear and scarves.

Secondly, Burberry's aggressive cost-cutting program, launched in November 2024, has instilled confidence in investors. The initiative, targeting £40 million in annual savings and £60 million by 2027, involves streamlining operations and reducing the global workforce by approximately 1,700 positions, primarily from corporate offices. The announcement of these measures led to an immediate 16% jump in Burberry's share price, demonstrating the market's approval of the company's efforts to improve efficiency and profitability.

However, beneath the surface of this impressive rally lie some significant concerns. While revenue stands at a solid £2.46 billion, the company reported a net loss of £75 million for the trailing twelve months.

The Relative Strength Index (RSI) of 68 also indicates that the stock is approaching overbought territory, suggesting that a pullback, or a pause, may be on the horizon. While strong momentum can sustain a rally for some time, an overbought RSI often signals that the price has risen too far, too fast, and is due for a correction.

All eyes are now on Burberry’s next earnings release, scheduled for July 14, 2025. This announcement will be crucial in determining whether the recent positive momentum is sustainable. Investors will be scrutinizing the results for signs of improved profitability and confirmation that the strategic initiatives are indeed bearing fruit.