Burberry H1 revenue misses estimates

Overview

• UK luxury brand's half-year revenue missed analyst expectations

• Adjusted operating profit for the half-year missed analyst expectations

• Company confirms previously announced retirement of Chair Gerry Murphy, succeeded by William Jackson

Outlook

• Burberry expects wholesale revenue to grow 10%-12% in FY27

• Targets annualised savings of around £100 mln in FY27

• Sees currency movements adding about £20 mln to FY27 revenue, with neutral adjusted operating-profit impact

Result Drivers

• SEGMENT AND MARKET GROWTH - Co said sales growth was driven by increases across most operating segments and markets

• HIGHER DTC SALES - Co said direct-to-consumer sales rose 16% yr/yr, contributing to gross margin improvement

• FAVORABLE CURRENCY - Co attributed higher gross margin in part to favorable NIS/USD exchange rates

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 8 "hold" and 4 "sell" or "strong sell"

• Wall Street's median 12-month price target for Burberry Group PLC is GBp1,250.00, about 14.4% above its November 11 closing price of GBp1,093.00

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 27 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)