UBS reaffirms its 'sell' recommendation on Burberry, with a price target lowered from 971 to 750 pence, representing a downside potential of 32% for the stock, the day after the British luxury house published its annual results.
"The results for the 2023-24 financial year and the outlook posted by Burberry's management further confirm the lack of progress in the turnaround and the associated risk to earnings", the broker highlights in the summary of its note.
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Burberry Group plc specializes in the design, manufacturing and marketing of top-of-the-range clothes and accessories. Net sales break down by activity as follows:
- retail distribution (84.3%): activity conducted, at the end of March 2025, through a network of 455 stores distributed between company-owned stores (229; Burberry name), concession stores (139), franchised stores (33) and other (54);
- wholesale distribution (13%);
- licensed sale (2.7%).
Net sales (not including licensed sale) break down by family of products between accessories (35.1%), men's clothing (30.6%), ladies clothing (30%), and children's clothing (4.3%).
Net sales (not including licensed sale) are distributed geographically as follows: Europe/Middle East/India/Africa (35.2%), Asia/Pacific (43.5%) and Americas (21.3%).
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