Burberry Stock News

Burberry: A Stock Worth Checking Out After 70% Jump

Canadian bank says recent data suggests that the luxury sector is stabilising after a tough year with key trends in China and the US looking more amenable going into 2025. Favoured stocks at the Canadian bank are French giant LVMH (target €650) for its diversity, scale advantage and sector bellwether status.

Burberry Group PLC (LSE:BRBY) shares were up almost 4% after it featured as one of two upgrades in a note on the retail and luxury sectors by a leading investment bank. Deutsche Bank is now a 'buyer' of the posh Mac maker, anticipating the brand will benefit from improved marketing efforts and a focus on core strengths, setting a target price of 1,180p, a potential 32% rise.

Burberry Group PLC (LSE:BRBY) gained on Monday after being upgraded to a ‘buy' rating by Deutsche Bank analysts. Deutsche forecast 2025 to bring a turnaround in fortunes for the luxury sector as a whole, but also Burberry as it embarked on its own overhaul plan.

Burberry's stock price spiked recently following its interim results, which is striking considering that neither the financials nor the outlook encourage confidence. It is however somewhat comforting that the company has a turnaround plan in place now, which could result in better days. At the same time, only limited improvements are to be expected in the short-term.

Burberry is hoping "scarf bars" in its stores, new ranges of puffer jackets, and a sharper focus on its classic products rather than new fashions will help to turn its brand around.

Burberry is aiming to boost waning sales by refocusing on heritage designs and statement pieces under sweeping revamp plans announced Thursday. Shares jumped over 22% on the announcement, logging their biggest-ever intraday gain.

British luxury fashion giant Burberry has embarked on a £40 million cost-saving programme as part of a comprehensive turnaround strategy unveiled by its new chief executive, Joshua Schulman. Appointed in July following the departure of Jonathan Akeroyd, Schulman aims to stabilize the company after years of declining performance and brand missteps.