Burberry stock gets a lower RBC target after downgrade

Published on 09/25/2026 at 14:24 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Burberry stock's adjusted operating profit rose to GBP 160 million from GBP 26 million in FY2026. Comparable sales grew 2 percent after a 12 percent decline in FY2025.

Bauhaus-Poster mit geometrischen Formen und Schriftzug LUXURY FASHION — Geometrisches Bauhaus-Poster mit Sektortext repräsentiert Burberry Group plc, ISIN GB0031743007, im Bereich Luxusmode und Fashion, Illustration mit AI erstellt.

Burberry stock (ISIN GB0031743007) was trading at GBp 1,031.50 on the London Stock Exchange at 1:22 p.m. BST on September 25, 2026, up 0.68 percent from GBp 1,024.50. The latest analyst action came on September 22, when Sharecast reported that RBC Capital Markets downgraded the luxury group to sector perform from outperform and cut its target from 1,400p to 1,200p.

RBC sees pressure on volume

RBC said Burberry is executing well through improved product and price architecture and stronger in-store merchandising. The bank nevertheless argued that the strategy relies heavily on volume and mix, while the luxury demand environment is putting incremental pressure on volume.

The same report said consensus expectations called for 5-6 percent revenue growth and 200 basis points of EBIT margin expansion in FY2029. RBC viewed those assumptions as too optimistic without additional cost reductions and cut its FY2028-29 earnings-per-share estimates by 6-8 percent.

Profit recovery meets regional growth

Burberry's FY2026 results show why the debate has shifted from survival to the durability of the recovery. According to Forbes on September 23, 2026, comparable-store sales rose 2 percent in FY2026 after falling 12 percent in FY2025, while adjusted operating profit increased to GBP 160 million from GBP 26 million.

Regional momentum continued into the first quarter ended June. Simplify Jobs reported comparable sales growth of 5 percent, with the Americas up 12 percent and Greater China up 9 percent. That regional spread supports the recovery case, but RBC's downgrade shows that investors are now demanding evidence that sales growth can translate into sustainable margin expansion.

Interim results set for November

Burberry's investor calendar lists interim results for November 12, 2026, according to the company's investor-relations page. That report will provide the next formal test of whether the 5 percent first-quarter comparable-sales growth is broadening while the group protects the GBP 160 million adjusted operating-profit recovery.

Stock remains below yearly high

At GBp 1,031.50 on September 25, 2026, Burberry stock was up 0.68 percent against the prior close and remained within its 52-week range of GBp 953.40 to GBp 1,376.50. Its market capitalization was GBP 3,694,946,465 and trading volume was 1,993,006 shares at the same intraday snapshot.