Burberry Group (BRBY.L) - Company Research

Last Updated: 28 April 2026

Burberry Group plc (LSE: BRBY) is a FTSE 100 British luxury house in the early innings of a turnaround under Joshua Schulman, who became CEO on 17 July 2024 and launched the "Burberry Forward" plan in November 2024 after revenue collapsed -15% in FY25 to £2.46 bn and adjusted operating profit fell to £26 m (margin 1%) from £418 m the prior year. Q3 FY26 (the 13 weeks to late December 2025, reported 21 January 2026) delivered the first comparable retail sales growth in two years (+3% CER), with Greater China returning to growth (+6%) and all four regions flat-or-positive for a second consecutive quarter. H1 FY26 had already shown gross margin expansion of 450 bps to 67.9% and a return to a small adjusted operating profit (£19 m) versus a (£41 m) loss in H1 FY25, although the dividend remains suspended and net debt/EBITDA stood at 2.2× at H1 FY26. CEO Schulman and CFO Kate Ferry made discretionary share purchases on 27 June 2025 (£1,069p and £1,099p respectively). The shares closed at 1,147.6p on 24 April 2026; FY26 preliminary results are scheduled for 14 May 2026. This report covers the FY25 numbers, the Burberry Forward strategy, the £100 m cost programme, the licensing portfolio, and the principal risks: China demand, executive turnover (3 CEOs in 4 years), brand identity volatility, and a structurally weaker leather-goods position than tier-one luxury peers.

1. Company Snapshot

Company	Burberry Group plc
Ticker	LSE: BRBY (FTSE 100); ADR: BURBY
Sector / Industry	Personal luxury goods — British heritage
HQ	Horseferry House, Horseferry Road, London SW1P 2AW
CEO	Joshua Schulman (since 17 July 2024; ex-Coach, Michael Kors, Jimmy Choo)
CFO	Kate Ferry (since October 2023)
Chair	Gerry Murphy
Chief Operating & Supply Chain Officer	Matteo Calonaci (from December 2025)
Founded	1856 by Thomas Burberry, Basingstoke
Employees	~9,000–10,000 globally (~1,700 role reductions announced)
Fiscal year end	Late March / early April (FY26 ends 28 March 2026)
Share price (24 Apr 2026)	1,147.6p
52-week range	~641p (Apr 2025) – 1,376.5p (6 Jan 2026)
Market cap	~£4.1–4.2 bn (~363.8 m issued shares incl. ~2.84 m in treasury)
FY2025 revenue	£2,461 m (-15% CER)
FY2025 adj op profit	£26 m (margin 1%)
H1 FY26 adj op profit	£19 m vs £(41) m H1 FY25
Q3 FY26 retail comp sales	+3% CER (first growth in two years)
Dividend	SUSPENDED (no FY25 final, no H1 FY26 interim)
Next results	FY26 prelims — 14 May 2026

2. Bull Case vs Bear Case

Bull Case	Bear Case
Q3 FY26 (reported 21 Jan 2026): comparable retail sales +3% CER — first growth in two years; sequential improvement Q1 -2% → Q2 +2% → Q3 +3%; Greater China +6%; all four regions flat-or-positive two quarters running.	FY25 revenue £2,461 m (-15% CER); adj op profit collapsed to £26 m vs £418 m FY24; margin 1%. Wholesale -35% CER in FY25.
Gross margin expanded 450 bps to 67.9% in H1 FY26 (from 63.4%); back to a small adj op profit (£19 m) vs (£41) m loss prior year — "Burberry Forward" plan delivering early.	Dividend remains suspended through H1 FY26; cash dropped from £708 m (Mar-25) to £424 m (Sep-25); net debt / adj EBITDA 2.2× at H1 FY26.
£100 m cost programme on track: £80 m annualised savings by end FY26, full £100 m by FY27; ~1,700 roles cut; hero categories (outerwear, scarves) growing double-digit; 200+ scarf bars rolled out globally.	Wholesale -11% CER in H1 FY26 (continuing pressure); deliberate reduction creates near-term revenue drag; partner network shrinking.
Insider conviction: CEO Schulman bought 29,744 shares at 1,069.09p on 27 Jun 2025; CFO Ferry bought 3,228 at 1,099.79p the same day — both discretionary on-market purchases.	Structurally weaker than tier-one luxury (Hermès, LVMH leather goods); lacks dominant leather franchise; soft-luxury cycle weighing on aspirational customers.
FY26 prelim results 14 May 2026 will be the first full-year scorecard for "Burberry Forward"; Schulman has previously turned around Coach and is publicly bullish on positioning the brand back in heritage British luxury.	3 CEOs in 4 years (Gobbetti, Akeroyd, Schulman); creative director Daniel Lee’s 2023 reset reversed; brand-identity volatility and execution risk remain a persistent overhang.

3. What Does This Company Actually Do?

Burberry designs, manufactures, distributes and retails branded luxury apparel and accessories with a focus on heritage outerwear (gabardine, trench coats, the Burberry check), scarves, leather goods and other accessories. It operates through directly-operated stores, concessions, outlets, e-commerce and a managed wholesale partner network (department stores, multi-brand retailers and travel-retail). Licensed product (notably fragrance via Coty, and Japan licensing with Sanyo Shokai/Mitsui historically) contributes a small but high-margin slice.

FY25 channel mix (% of £2,461 m group revenue):

Channel	Revenue (£m)	YoY (CER)	% of group
Retail	2,076	-11%	~84%
Wholesale	319	-35%	~13%
Licensing	66	+9%	~3%

FY25 regional split:

Region	Revenue (£m)	% of group	Stores
Asia Pacific (Greater China + Korea + Japan + SEA)	1,043	42%	237
EMEIA (Europe, Middle East, India, Africa)	842	34%	100
Americas	510	21%	85

Product mix: Accessories £841 m (FY25), Womenswear £718 m, Menswear £732 m. Outerwear (gabardine, trench, heritage) and scarves are the explicit hero categories under Burberry Forward.

4. The Business Model

• Gross margin: 67.9% (H1 FY26) vs 63.4% (H1 FY25); ~63% (FY25 full-year) — recovery driven by full-price mix, lower discounting, and supply-chain efficiencies.
• Stores: 422 directly operated stores (Mar 2025); 449 total locations including concessions, outlets and franchises (Jun 2025).
• Manufacturing: Owned heritage outerwear in Castleford, Yorkshire (gabardine, trench coats); Italian leather-goods and technical-outerwear capability built via M&A; broader global supplier network.
• Brand positioning: Heritage British luxury — gabardine, trench, check pattern, scarves. The 2023 Daniel Lee creative reset has been dialled back under Schulman in favour of returning to "timeless British luxury" cues.
• Pricing: Burberry Forward recalibrated entry price points (especially leather goods) downward toward more accessible luxury; full-price sales accelerating in Q3 FY26.
• Cost programme: £100 m annualised savings by FY27 (£40 m original + £60 m incremental); ~1,700 roles cut globally; £80 m run-rate by end FY26.
• Government incentives / regulatory credits: Not material to the business model; BRBY does not depend on subsidies, tax credits or regulatory credits.

5. Financial Health

Five-year financials (FY21–FY25, March year-end):

Metric	FY21	FY22	FY23	FY24	FY25
Revenue (£m)	2,344	2,826	3,094	2,968	2,461
Adj op profit (£m)	~396	523	634	418	26
Adj op margin	~17%	~19%	~20%	14%	1%
Free cash flow (£m)	n/a	n/a	n/a	63	65
Net cash (£m, ex-leases)	strong	strong	strong	n/a	(30)
Total DPS (p)	n/a	n/a	n/a	n/a	0 (suspended)

Half-year periods:

Period	Revenue (£m)	Adj op profit (£m)	Adj op margin
H1 FY24	~1,397	~223	~16%
H1 FY25	~1,086	(41)	(3.8%)
H2 FY25	~1,375	67	4.9%
H1 FY26 (reported 13 Nov 2025)	1,032 (-3% CER)	19	1.8%
Q3 FY26 retail (21 Jan 2026)	665 (+3% CER)	n/d	n/d

Capital structure (H1 FY26, Sept 2025): Cash £424 m (down from £708 m at Mar-25); net debt / adj EBITDA 2.2× (incl. lease liabilities); FY26 H1 adj diluted EPS 0.6p vs (18.3)p; reported diluted loss per share (7.1)p vs (20.8)p.

6. Valuation & Market Data

Share price (24 Apr 2026 close)	1,147.6p (-0.21% on day)
Market cap	~£4.1–4.2 bn
Shares in issue (31 Mar 2026)	363,838,387 (incl. 2,839,220 in treasury)
Enterprise value	~£4.7–4.8 bn (incl. lease liabilities)
52-week range	~641p (Apr 2025) – 1,376.5p (6 Jan 2026)
Trailing P/E	negative (TTM loss)
Forward P/E (consensus)	~50–57× (depressed earnings base; recovery year)
EV / EBITDA	~6×–12× range across data providers
Price / Sales	~1.7× (on FY25 revenue)
Dividend yield	0% (suspended)
Net debt / adj EBITDA (H1 FY26)	2.2×
Cash (Sept 2025)	£424 m

7. What Are They Building / What’s Coming?

• Burberry Forward strategy – Launched Nov 2024 by Schulman. Five pillars: (1) re-anchor brand in timeless British luxury, (2) hero outerwear & scarves, (3) reset price architecture (esp. leather), (4) improve productivity, (5) stabilise wholesale.
• £100 m cost programme – £80 m annualised savings by end FY26, full £100 m by FY27; ~1,700 roles cut globally.
• Store renovations – Scarf bars rolled out to 200+ locations; flagship refresh ongoing.
• Hero categories – Outerwear and scarves growing double-digit in Q3 FY26; gabardine capsule and trench heritage being pushed.
• Recent operational appointments – Matteo Calonaci (COO/Supply Chain) and a new Chief Customer Officer announced December 2025.
• Product launches in calendar 2026 – Winter 2026, Summer 2026 and High Summer 2026 campaigns; Hunza G swimwear collaboration launched 28 April 2026 (in stores and online; signature check + new "seahorse Knight" logo).
• Digital / AI – Customer data and analytics investment under the new CCO; specific AI tooling not separately broken out in filings.
• Licensing portfolio – Coty fragrance licence remains the largest licensing partner; Japan licensing arrangement with Sanyo Shokai/Mitsui has historic origins (note: a "17 April 2026" licence amendment that surfaced in some external feeds is in fact dated 2 October 2009).

8. Competitive Landscape

The global personal luxury market sits around $370–490 bn in 2025/26 estimates and grows ~3–4% per year. Burberry is a mid-cap UK-listed luxury house with ~£2.5 bn revenue, well behind tier-one European houses by both scale and margin.

Peer	2025 revenue (approx)	Notes
LVMH	~€80.8 bn	Largest; ~1% organic decline 2025
Richemont	~$22 bn	Jewellery-led (Cartier, Van Cleef)
Kering	~€17 bn (-13% reported)	Gucci weakness key drag
Hermès	~€16 bn (+9% CC)	41% op margin — structural luxury leader
Prada Group	~€5 bn+	Miu Miu surge; pending Versace deal
Moncler	~€3 bn	Outerwear-focused; closest single-category peer
Brunello Cucinelli	~€1.4 bn	Mid-cap, strong execution
Burberry	~£2.5 bn (FY25)	Heritage British luxury; in turnaround
Capri Holdings	~$5 bn	Michael Kors, Versace, Jimmy Choo — accessible luxury
Tapestry	~$6 bn	Coach, Kate Spade — Schulman’s former employer
Ralph Lauren	~$7 bn	American heritage
Tod’s	~€1.1 bn	Italian leather, family-controlled

Reliable single-figure market-share percentages for the personal luxury market are not consistently published; soft luxury (Burberry’s segment) is a sub-segment of the broader $400 bn-ish market and is currently underperforming hard luxury (Hermès, jewellery) at the consumer end.

9. Leadership and Ownership

Top institutional holders (April 2026):

Holder	Approx. holding	Notes
BlackRock	~6.4%	Largest institutional
Lindsell Train	multi-percent	UK fund manager, long-term holder
Vanguard funds	~3–4% combined	Index-linked passive
JPMorgan Chase Holdings	moving across thresholds (multiple notifications 1–10 April 2026)	RNS series Apr 2026
Total institutional	~87–89%	Heavy float

Insider transactions:

Date	Person	Action	Shares	Price	Type
27 Jun 2025	Joshua Schulman (CEO)	Buy	29,744	1,069.09p	Discretionary on-market purchase
27 Jun 2025	Kate Ferry (CFO)	Buy	3,228	1,099.79p	Discretionary on-market purchase
31 Jul 2025	Directors	Conditional share awards	various	Reference 1,348p	Burberry Share Plan (5-yr min hold)
11 Dec 2025	Directors	SIP nil-cost grants	various	Reference £11.98	Share Incentive Plan
20 Mar 2026	Director / PDMR	Shareholding RNS	n/d	n/d	Routine notification

10. Risks and Challenges

• China demand: Greater China is the largest single market; consumer sentiment, property/macro drag, anti-extravagance and tourism flows directly drive results.
• Luxury cycle: Aspirational consumer pullback affecting all soft-luxury houses (Kering, LVMH F&LG, Burberry); contrast with hard luxury (Hermès, jewellery).
• Executive turnover: 3 CEOs in 4 years (Gobbetti 2017–2022, Akeroyd 2022–2024, Schulman 2024–); strategy reset risk.
• Brand identity volatility: Daniel Lee creative direction (2023) reversed; back to heritage under Schulman.
• Wholesale concentration: Deliberate -35% CER reduction in FY25 creates near-term revenue drag; multi-year recalibration.
• Licensing concentration: Coty fragrance and historic Japan licensing — small revenue but disproportionate brand-control sensitivity.
• FX exposure: ~£60 m FX headwind in FY24; significant USD/RMB/JPY exposure given retail footprint.
• Tariff and trade: Soft-luxury imports facing tariff uncertainty (US-China) and EU/UK trade frictions.
• Dividend / cash: Suspended through H1 FY26; resumption tied to FY26 prelim outcome and net debt trajectory.
• ESG / animal welfare scrutiny: Wool, leather, exotic skins under regulatory and reputational pressure.

11. Recent Developments

• 28 April 2026 (today): Burberry x Hunza G swimwear collaboration launched in stores and online — signature check + new "seahorse Knight" logo.
• 1–10 April 2026: Multiple JPMorgan Chase Holdings notifications crossing notification thresholds. 1 April: Issue of Shares & Total Voting Rights RNS.
• 31 March 2026: Total Voting Rights — 363,838,387 ordinary shares (incl. 2,839,220 in treasury).
• 20 March 2026: Director / PDMR shareholding; Issue of Equity.
• 21 January 2026 — Q3 FY26 trading update: Comparable retail sales +3% CER (first growth in two years); retail revenue £665 m (+1% reported, +3% CER); Greater China +6%; all four regions flat-or-positive for second consecutive quarter; Schulman: "continued to build momentum with our Burberry Forward strategy".
• 13 November 2025 — H1 FY26 (26 weeks to 27 Sept 2025): Revenue £1,032 m (-3% CER, -5% reported); comps flat in H1, +2% in Q2; gross margin 67.9% (+450bps); adj op profit £19 m vs (£41) m prior year; net debt / adj EBITDA 2.2×; cash £424 m; no interim dividend; adj diluted EPS 0.6p vs (18.3)p.
• July 2025 — Q1 FY26 trading update: Comp sales -2%; signs of stabilisation under "Burberry Forward".
• 27 June 2025: CEO Schulman bought 29,744 shares at 1,069.09p; CFO Ferry bought 3,228 at 1,099.79p — both discretionary purchases.
• 14 May 2025 — FY25 prelims: Revenue £2,461 m (-15% CER); adj op profit £26 m vs £418 m FY24; margin 1%; dividend suspended.
• Nov 2024: Joshua Schulman launched "Burberry Forward" plan, three months after taking the CEO role.

12. Key Dates Coming Up

Date	Event
14 May 2026	FY26 Preliminary Results (year ended 28 March 2026)
Mid-July 2026	2026 AGM (typical Horseferry House timing)
Mid-July 2026	Q1 FY27 trading update (typical timing)
Mid-November 2026	H1 FY27 interim results (typical)
Mid-January 2027	Q3 FY27 trading update (typical)

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