Burberry Group PLC (LSE:BRBY) remains one of JPMorgan's least-favoured luxury stocks despite signs that demand across the sector improved during the second quarter. Analyst Chiara Battistini retained an 'underweight' rating on the British fashion house, with the same for Gucci owner Kering SA (EPA:KER) (Kering SA (EPA:KER)) and Swiss watchmaker Swatch Group (SWX:UHR).
Burberry Group plc (BURBY) Q1 2027 Sales/Trading Call Transcript
Burberry posted flat sales growth for its first quarter, but noted that it saw growth across divisions for the first time in three years.
Burberry Group PLC (LSE:BRBY) has had its best quarter in years, and trench coats are leading the charge. The British luxury house posted first-quarter retail revenue of £455 million for the 13 weeks to 27 June, up 5% on last year, with comparable sales also climbing 5%.
Burberry Group PLC (LSE:BRBY) recent share price weakness reflects growing investor concerns that the luxury group's turnaround may struggle to deliver another round of earnings upgrades, according to UBS. Shares in the British fashion house have fallen around 19% since the start of the year, including 6% over the past month.
Shares in fashion and luxury brands were among the top risers in Europe on Wednesday after JPMorgan said booming wealth creation and tourism spending in South Korea could provide a major growth tailwind for the sector. The bank said South Korea was emerging as one of the brightest spots for luxury goods companies, helped by rising consumer confidence, surging semiconductor-linked wealth and growing tourist demand.
Burberry Group PLC (LSE:BRBY) shares offer some 30% upside according to analysts at RBC Capital Markets, as the bank stuck with a bullish stance on the British luxury brand. After full-year results from Burberry, RBC repeated an Outperform rating, a 1,400p price target, and called the brand its “preferred turnaround idea”.
Burberry scarves are having a moment. The company said this has become a pivotal area of its business.
For years, luxury brands chased ever-higher price points, louder logos and ultra-exclusive positioning. But now Burberry is leaning into more understated British heritage, recognizable design and a growing American fascination with the English countryside.
Burberry said this fiscal year marked a "meaningful inflection point." The British luxury outerwear maker said comparable sales grew 2% over the fiscal year, boosted by a 10% growth in the Americas and China in the quarter ended March.
Burberry Group PLC (LSE:BRBY) said its turnaround strategy had reached a "meaningful inflection point" as it returned to comparable sales growth and beat profit expectations for the 2026 financial year. The maker of trench coats and scarves said fourth-quarter retail comparable sales rose 5%, ahead of analyst expectations of 4.6%, helped by a 10% increase in Greater China and a 10% rise in the Americas.
Sales climbed 5% as it continues to undergo a turnaround plan amid difficult market conditions due to geopolitical instability.