- Burberry Group
- 28 March 2025 10:53:38
Source: Sharecast
The bank noted that Burberry shares have been weak, reversing all post 1H gains. This likely reflects fourth-quarter retail LFL expectations unlikely to show a sequential improvement, pushing back the potential recovery timeframe.
RBC cut its FY25 revenue estimate by 1% and its EBIT estimate to £5.2m from £5.7m. For FY26, it forecasts organic growth of 2% and £136m EBIT, which is 8% below its prior estimate.
The bank said its estimates are 3% below consensus revenue and 17% below consensus EBIT for FY26.
"Whilst Burberry is early in its turnaround, we believe it is pursuing the right strategy and Autumn/Winter '25 collection should start to address its price architecture offering some retail LFL support," RBC said.
It added that the strategy update from chief executive Joshua Schulman with FY25 results should offer "incremental insight into progress and next steps".
RBC rates the shares at ‘outperform’, speculative risk.
At 1050 GMT, the shares were down 1.2% at 816p.