Burberry shares drop due to profit warning, dividend suspension, and revenue weakness.

From Morningstar: 2024-07-15 09:09:00

Shares in Burberry have plummeted after issuing a profit warning and suspending dividends. Chief executive Jonathan Akeroyd has been replaced by Joshua Schulman. Sales in Asia Pacific, China, and the Americas have dropped significantly. A Fair Value Estimate of £13.30 has been given, reflecting current struggles in the luxury market.

The luxury brand’s revenue has weakened, with Morningstar revising its Fair Value Estimate for Burberry down to £13.30. The brand has struggled to compete with peers and has seen turnover in leadership. Analysts believe a pivot to more affordable options and regaining focus on outerwear could help Burberry navigate these challenges.



Read more at Morningstar: Fair Value Estimate Cut For Struggling Burberry