Will Burberry Group (FTSE: BRBY) be able to improve operating margins in FY24?

2 min read | June 13, 2023 01:52 AM PDT | By Team Kalkine

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Will Burberry Group (FTSE: BRBY) be able to improve operating margins in FY24? — Image source: Shutterstock.com

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Highlights

Burberry Group PLC (FTSE: BRBY) is a luxury goods manufacturer, retailer, and wholesaler dealing with a global client base

In FY23, the company posted 9.48% increase in revenue

Improved sales and curtailed net operating expenses boosted the company’s adjusted operating profits by 21%

FTSE 100 index-listed Burberry Group PLC (FTSE: BRBY) is a luxury goods manufacturer, retailer, and wholesaler dealing with a global client base. The company is also involved in providing licenses to third parties for making and distributing goods using the Burberry trademarks. Burberry has its segments spanning across retail/wholesale and licensing.

In FY23, the company has secured 9.48% increase in revenue. This can be attributed to the improved sales from Mainland China during Q4FY23. Also, the comparable sales stores grew moderately by 7%. Overall, improved sales and curtailed net operating expenses have brought about a 21% increase in the adjusted operating profits whereas the adjusted operating profit margins increased by 200 bps in FY23.

In FY24, the management expects the high single digits revenue to grow from the base of FY20, whereas the adjusted operating profit margin is estimated to increase by 20%. The company is planning for a share buyback of approx. GBP 400 million to be completed in FY24.

Top 10 Shareholders

The top 10 shareholders collectively hold ~16.71% stake in the company. LF Lindsell Train UK Equity Fund holds the maximum number of shares with ~5.58% shareholding, followed by Finsbury Growth & Income Trust PLC with ~2.12% shareholding, as depicted in the chart below.

Stock Price Performance

The stock has witnessed a decline of ~11.21% in the last one month and over the last 6 months, it has increased by ~4.11%. The stock has a 52-week low and 52-week high of GBX 1529.00 & GBX 2656.00, respectively.

Data Source: EODHD/Others, Analysis done by Kalkine Group

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 13 June 2023. The reference data in this report has been partly sourced from EODHD/Others.

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