Burberry Group PLC

BRBY: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	GBX 4,851.00	Qkbrxm	Zpkcgkmr

Burberry: Weak Sales Trends and CEO Departure Weigh on Shares, Which We Still See as Cheap

Jelena Sokolova

Jul 15, 2024

We are reducing our fair value estimate for narrow-moat Burberry to GBX 1,330 per share from GBX 1,570 to reflect weaker expectations for the current year following a disappointing first quarter, as well as a slower longer-term recovery in sales. We still see value in the shares. The luxury sector is going through one of its downcycles, which historically haven't persisted for longer than one or two years, so we still see potential for Burberry to recover brand momentum.

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