BBRYF - Burberry: Strategic Plan Shows Results, But Not Enough Yet

2025-03-06 10:57:12 ET

Summary

• Burberry's price performance YTD is impressive, far outdoing the rise in the S&P Global Luxury Index.
• The rise follows the initiation of its strategic plan, Burberry Forward, late last year. It appears to be showing signs of working already.
• In Q3 FY25, Burberry saw a much milder decline in revenues, though the full-year outlook for FY25 is still weak.
• Improved expectations for FY26 or a more concrete turnaround in Q4 FY25 may well make a Buy case for the stock going forward, but for now, it remains a firm Hold.

Since the last time I wrote about luxury fashion stock Burberry (BURBY) in November last year, its price is up by 20%. Not only is this a massive turnaround after a 34% price drop in 2024, the stock's year-to-date [YTD] increase of 15.8% is far bigger than that for the S&P Global Luxury Index, at 6.1%, as well....

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