Burberry: with no silver lining, Oddo BHF cuts TP

(CercleFinance.com) - Oddo BHF maintains its 'underperform' rating on Burberry shares, with a price target reduced from 1100 to 1080 pence.


Burberry reported sales of £2,968m at end-March, in line with Oddo BHF's expectations (£2,937m). Full-year results were slightly not as bad as expected, but the double-digit decline in Q4 retail was confirmed the broker says, which sees no silver lining.

Chinese demand tended to move out of China in Q4, but taken as a whole it is estimated by Burberry to be down by 12% y/y, an unflattering score in view of the near 10% increase posted for the same quarter by LVMH, the analyst points out.

Against this backdrop, Burberry expects a "very significant" decline in wholesale sales in H1 25 to almost -25%, and sees no improvement in the trend for retail sales at the start of Q1 compared with Q4.

Oddo has therefore reduced its EBIT forecast for 2025 by 10%, for 2026 by 9% and for 2027 by 7%.


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