Burberry Group plc (BRBY.L) stock analysis

In our weekly check, Burberry Group plc is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 12 pass, warnings: 7, red flags: 5.

About Burberry Group plc

Burberry Group plc is a Consumer Cyclical company (Luxury Goods) based in the United Kingdom, listed on LSE as BRBY.L.

What our checks show for BRBY.L

Red flags

• The net margin fell by 13.1 points over 5 years, to 0.9%: the company keeps less of each sale as profit.
• The gross margin fell by 7.1 points, to 52.5%: costs are rising faster than prices.
• Revenue fell 7.9% a year over the last 3 years.
• The net margin is only 0.9%: little room if costs rise.
• The stock has fallen as much as 78% from a peak. Would you have held through that?

Warning signs

• Net debt is 1.6x a year of EBITDA (debt/equity 1.62). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 2.3 times: a weak year could make the payments hard.
• Earnings per share fell 64.1% a year over the last 3 years.
• Net profit fell 65% a year over the last 3 years.
• The price swings a lot: 36.3% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 7%.

Strengths

• Operating cash flow is 23.05x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 132% a year over the next years.
• Analysts expect the net margin to improve by 8.3 points from today's 0.9%.
• Free cash flow is 15.3% of revenue: cash for dividends, buybacks or growth.
• Beta 0.7: the stock usually moves less than the market.
• Actively traded: about 2.1 million shares a day.

Next earnings report: 2026-11-12

Similar companies

SIG · BC.MI · UHR.SW · REAL · LUXE · KER.PA

Questions

What grade does Burberry Group plc (BRBY.L) have?

In our weekly check, Burberry Group plc is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 12 pass, warnings: 7, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of BRBY.L stock?

This week's biggest flags for Burberry Group plc: Margins falling, Gross margin falling, Weak revenue growth. In total 12 of 24 checks show a warning or a red flag.

What does Burberry Group plc do?

Burberry Group plc is a Consumer Cyclical company (Luxury Goods) based in the United Kingdom, listed on LSE as BRBY.L.

When does Burberry Group plc report earnings next?

The next earnings report is expected on 2026-11-12. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

Open the full analysis