Burberry Group shares (LON:BRBY) have been riding a bullish wave this year, with gains of 36% through the first half of 2025.
The company, founded in 1856 by Thomas Burberry is an iconic British brand, renowned for its distinctive trench coats, signature check pattern, and commitment to British heritage.
The company designs, manufactures, and distributes a wide range of luxury goods, including apparel, accessories, fragrances, and cosmetics. Its success hinges on maintaining its brand prestige, attracting affluent consumers, and adapting to evolving fashion trends.
The current CEO of Burberry is Joshua Schulman, appointed in 2024. Burberry was listed on the London Stock Exchange, and was first listed in 2002. Burberry Group plc trades under the ticker symbol BRBY.
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Burberry Share Price
The past year has been marked by significant upheaval. In July 2024, Burberry announced a profit warning and the departure of Chief Executive Jonathan Akeroyd, a move that sent shockwaves through the market. Sales declines were reported across key regions, with store sales plummeting 23% in the Americas and Asia Pacific, and 16% in Europe, the Middle East, India, and Africa.
The company’s share price subsequently tumbled 15%, and dividend payments were suspended, underscoring the severity of the situation. Joshua Schulman stepped in as the new CEO, tasked with steering the company through this turbulent period.
Burberry EPS and Revenue Breakdown 2020-2023
| BRBY | Annual EPS | Annual Revenue |
|---|---|---|
| 2021 | £0.67 | £2.34 billion |
| 2022 | – | £2.83 billion |
| 2023 | £1.15 | £3.09 billion |
| 2024 | £0.69 | £2.97 billion |
| 2025 | £0.06 | £2.461 billion |
Fashion Industry Comparison
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Burberry Share Price Forecast
Overall, 3 analysts have assigned Burberry shares a “Strong Buy” rating, 4 “Buy” 8 assigned it a “Hold”.
?A View From The Bulls:
- Cost-cutting measures: The £100 million cost-cutting program is expected to improve profitability and free up resources for strategic investments.
- Brand refocus: Renewed emphasis on core outerwear and iconic trench coats could resonate with consumers and drive sales growth.
- New leadership: The appointment of Joshua Schulman as CEO could bring fresh perspectives and accelerate the turnaround.
- Potential for margin expansion: Successful execution of the turnaround plan could lead to significant margin expansion in the coming years.
?A View From The Bears:
- Execution risk: The turnaround plan faces significant execution risks, and there is no guarantee that Burberry will achieve its targets.
- Weak sales: Sales declines in key markets remain a concern, and it is unclear when Burberry will return to sustainable growth.
- Analyst downgrades: Negative analyst sentiment could weigh on the stock and limit its upside potential.
- Macroeconomic headwinds: A slowdown in the global economy could negatively impact demand for luxury goods.
Average Analyst Consensus 12-Month Price Target: £1,085.56
Our View: Analyst sentiment surrounding Burberry has been mixed, reflecting the uncertainty surrounding the company’s turnaround prospects. Several firms have downgraded their ratings on the stock, citing concerns about Burberry’s ability to maintain its status as a high-end luxury brand.
Barclays, for instance, downgraded Burberry to ‘underweight’ in September 2024, warning that the company was likely to turn loss-making for the first time in the first half of the current financial year. Deutsche Bank followed suit in May 2025, downgrading Burberry to ‘hold,’ arguing that the anticipated turnaround was already priced into the share price. While acknowledging early signs of brand recovery, Deutsche Bank emphasized that further upside would depend on more ambitious execution, such as achieving double-digit sales growth or increasing profit margins above mid-teens levels by 2028.
Other analysts, however, have expressed a more optimistic outlook. The Royal Bank of Canada, for example, initially increased its price target for Burberry from GBX 1,000 to GBX 1,300 in January 2025, maintaining an ‘outperform’ rating. Although they later decreased the price target to GBX 1,200 in March 2025, they still maintained the ‘outperform’ rating. These divergent views underscore the complexity of the Burberry investment case and the challenges in predicting the company’s future performance.
