Shares in Burberry Group PLC (LSE:BRBY) edged higher on Tuesday, bucking weakness elsewhere in the luxury sector after Hugo Boss highlighted the challenges facing global fashion groups. The German group warned that consumer sentiment remains weak worldwide.
Citi has lifted its price target on Burberry Group PLC (LSE:BRBY) to £16, up from £12.50, citing growing signs that the British luxury brand's turnaround plan is starting to gain traction under chief executive Jonathan Akeroyd and newly appointed creative director Daniel Lee. The broker kept its ‘Buy' rating and upgraded earnings forecasts slightly across the next three financial years, following a third straight quarter of improvement in like-for-like retail sales.
Burberry's Q1 FY2026 results show slower revenue decline and better-than-expected comparable sales, but the business remains fundamentally challenged, especially in Asia. CEO Josh Schulman's cost-cutting and strategic refocus on core products are stabilizing the company, but macroeconomic headwinds in China persist. The recent share price surge has already priced in much of the Burberry Forward transformation benefits, making the stock less attractive at current levels.
Burberry sales in the Americas rose 4% year-on-year in the fiscal first quarter, indicating the green shoots of a turnaround at the luxury brand. The luxury brand attributed the uptick to both new and existing consumers.
Burberry Group PLC (LSE:BRBY) reported an improvement in like-for-like sales for the first quarter of its new financial year, supported by improved "brand desirability" and strength in its core categories. Sales in the 13 weeks to 28 June fell 1% on a comparable basis versus a year earlier, an upswing from the 6% decline seen in the final quarter of last year and the 12% drop over the full year.
A year after Josh Schulman became Burberry's CEO with a mandate to turn the British luxury brand around, investors say they're pleased with early signs of recovery even though sales are still falling.
Investors seeking steady wealth-building opportunities are turning their attention to companies with the rare ability to compound growth over time. London Stock Exchange Group PLC (LSE:LSEG) and Burberry Group PLC (LSE:BRBY) have emerged as standouts in this regard, according to Panmure Liberum, which points to their resilient business models and renewed momentum as reasons for continued optimism.
Burberry Group PLC's (LSE:BRBY) brand momentum is showing signs of improvement, according to Morgan Stanley's recent luxury goods sector check. After a period of weaker performance, experts report a shift from last year's double-digit declines to small positive growth this year.
Shares in Burberry Group PLC (LSE:BRBY) rose 2.7% after UBS strategists turned positive on the luxury sector, reversing their previous cautious stance and upgrading it from underweight to neutral. UBS argued the luxury sector had become "rarely oversold," creating an attractive short-term opportunity.
Troubled U.K. luxury fashion brand Burberry has paid its new chief executive,
Burberry Forward is showing early signs of success, with H2 profits offsetting H1 losses and brand initiatives gaining traction. Key turnaround drivers include a renewed focus on core outerwear/scarf categories, restoring brand scarcity, and aggressive cost-cutting measures. FY25 results highlight improved performance, but macro headwinds and weak FY26 guidance mean challenges persist for the luxury sector.
Burberry Group PLC (LSE:BRBY) turnaround is finally winning over sceptics. UBS has upgraded the stock to 'buy' from 'neutral' and lifted its price target to 1,400p, up from 918p.