- British luxury goods firm Burberry has shifted strategy in recent years in order to exercise greater control over its brand. This will benefit shareholders in the long run.
- Historical growth has been powered by Asia, specifically by Chinese consumers, which can continue after COVID.
- The pandemic has clearly had a negative impact on the firm given its reliance on physical retail and tourism.
- At 1,765 pence per share, the stock trades at around 22x pre-COVID net profit. That valuation already incorporates a return to historical growth levels.
- Question marks remain over the impact of the pandemic, specifically on travel and tourism. As such, investors need not rush to buy the stock.
For further details see:
Burberry: A Hold Until The Dust Settles