Burberry Group PLC

BRBY: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	GBX 2,739.00	Rdqvjq	Qfqzqtztx

Burberry Earnings: Turnaround Remains Elusive as Profit Drops; Shares Still Attractive

Jelena Sokolova

May 15, 2024

We are reducing our fair value estimate for narrow-moat Burberry to GBX 1,680 from GBX 2,100 as the company reported a decline in revenue and profits for fiscal 2023/24. While full-year revenue and profits were modestly below our estimates, we factor in our reduced expectations for the recovery of brand appeal, given that Daniel Lee’s appointment failed to improve performance after 18 months in the chief creative officer role as well as a more challenging industry backdrop in the current year. Shares remain undervalued.

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