Burberry Group PLC
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
GBX 8,218.00 | Bfxbwp | Rwvfddcr |
Burberry's Q1 2020 Largely in Line With Expectations but Guidance for Q2 More Cautious, Keeping FVE
We maintain our fair value estimate for narrow-moat Burberry Group as the firm reported a 48% decline in sales in the first quarter, ended June (49% down in constant exchange rates and 45% drop in comparable sales). This was slightly ahead of our expectations for a 50% drop in the first quarter as this period was highly affected by coronavirus containment measures and store closures. In June revenue declines eased to negative 20%, and mainland China and South Korea saw rises in revenue year over year (confirming the trend highlighted by peer The Swatch Group on July 14).