The ( ) share price is down 70% in a year. The big question for investors though, is whether it’s going to bounce back or whether there’s something wrong with the business. There are 21 on the stock at the moment.
And while their views vary, they’re generally not all that positive. Out of fashion It’s a bit of a cliché to say that Burberry’s fallen out of fashion. But the fact the expression has probably been overused by just about everyone looking at the stock doesn’t make it less true.
The difficulties have been well documented. A luxury – rather than ultra-luxury – product line has left the business exposed to customers facing cost of living pressures, especially in China. On top of this, growth via a bigger focus on accessories such as leather bags has stalled as the luxury bags sector has struggled.
In tough times, affluent consumers prefer the confidence that comes with much more established names in the space, such as and . As a result, sales have fallen 21% and earnings per share are expected to fall from £1.23 in 2022 to 17p this year.
The question for investors though, is what comes next? Analyst forecasts Analysts are expecting Burberry’s profits to rise, but they’re not forecasting a return to 2022’s levels any time soon. Despite this, the average price target’s 20% higher than the current level. Earnings per share are expected to come in at 41p in 2025, rising to 80p by 2027.
With the share price currently at £6.64, this would imply a .