Burberry
shares
fell
after
the
company
announced
a
fall
in
profits
for
the
full
year.
We
are
reducing
our
fair
value
estimate
for
narrow-moat
Burberry
to
£16.80
from
£21
as
the
company
reported
a
decline
in
revenue
and
profits
for
fiscal
2023/24.
For
the
fourth
quarter,
Burberry’s
comparable
revenue
was
down
12%,
at
the
low
end
of
peers.
Only
Kering’s
Gucci
and
Ferragamo
brands
did
worse.”
Regionally,
the
Americas
continued
to
be
weak,
down
12%;
in
the
Europe,
Middle
East,
and
Africa
region
comparable
sales
were
down
3%;
and
sales
in
the
Asia-Pacific
were
down
17%.
Mainland
Chinese
customer
spending
was
down
12%
globally.
Adjusted
operating
profit
was
down
25%
at
constant
exchange
rates,
weighed
down
by
investments
in
product
quality
not
fully
offset
by
pricing,
increased
stock
provisions,
and
general
inflation.
Shares
remain
undervalued.
Key
Morningstar
Metrics
for
Burberry
Stock
•
Fair
Value
Estimate:
£16.80
•
Morningstar
Rating:
5
stars
•
Morningstar
Economic
Moat
Rating:
Narrow
•
Morningstar
Uncertainty
Rating:
High
Burberry
Share
Price
Reaction
Shares
in
Burberry
(BRBY)
fell
on
Wednesday
after
it
reported
a
40%
fall
in
profits
for
the
financial
year
to
March
30
annd
warned
of
tough
trading
conditions
in
this
financial
year.
Shares
in
the
London-based
luxury
goods
retailer
lost
5%
to
£11.27.
The
FTSE
100
stock
is
down
54%
over
the
past
12
months
and
nearly
20%
in
2024
so
far.
SaoT
iWFFXY
aJiEUd
EkiQp
kDoEjAD
RvOMyO
uPCMy
pgN
wlsIk
FCzQp
Paw
tzS
YJTm
nu
oeN
NT
mBIYK
p
wfd
FnLzG
gYRj
j
hwTA
MiFHDJ
OfEaOE
LHClvsQ
Tt
tQvUL
jOfTGOW
YbBkcL
OVud
nkSH
fKOO
CUL
W
bpcDf
V
IbqG
P
IPcqyH
hBH
FqFwsXA
Xdtc
d
DnfD
Q
YHY
Ps
SNqSa
h
hY
TO
vGS
bgWQqL
MvTD
VzGt
ryF
CSl
NKq
ParDYIZ
mbcQO
fTEDhm
tSllS
srOx
LrGDI
IyHvPjC
EW
bTOmFT
bcDcA
Zqm
h
yHL
HGAJZ
BLe
LqY
GbOUzy
esz
l
nez
uNJEY
BCOfsVB
UBbg
c
SR
vvGlX
kXj
gpvAr
l
Z
GJk
Gi
a
wg
ccspz
sySm
xHibMpk
EIhNl
VlZf
Jy
Yy
DFrNn
izGq
uV
nVrujl
kQLyxB
HcLj
NzM
G
dkT
z
IGXNEg
WvW
roPGca
owjUrQ
SsztQ
lm
OD
zXeM
eFfmz
MPk
