From Morningstar: 2025-04-04 05:46:00

Burberry stock was already struggling, and Trump’s tariffs are making its recovery more challenging. The FTSE 250 company’s stock fell 5.5% in early trading after the US imposed tariffs on UK goods. The luxury retailer has significant exposure to the Far East and is now facing additional pain from reciprocal tariffs in Southeast Asian countries.

Morningstar analyst Jelena Sokolova believes the biggest risk to the luxury sector is the impact of tariffs on consumer sentiment and global economic growth. The poor performance of the US stock market suggests widespread negativity, which will likely hit luxury demand. Despite this, Burberry stock is significantly undervalued according to Morningstar analysis, trading below its fair value estimate.



Read more at Morningstar: Stock of the Week: UK Luxury Brand Burberry Crushed…