Burberry Share Discussion Threads

[purplepelmets] 12/1/2024 13:33

Im no fashionista but isnt tartan a bit 1990s? Might be popular still in backwards countries like Russia or Australia? Suppose it all comes back into fashion at some point. Tempted to bottom fish here

[essentialinvestor] 12/1/2024 13:25

Yes but we've experienced a luxury super cycle over that decade, so it may be more challenging to ascribe a value to the business atm.

[justiceforthemany] 12/1/2024 13:21

Remains a top quality name trading at a 50% discount to its 10 year average.

[essentialinvestor] 12/1/2024 10:56

That's a very significant miss on consensus before today's RNS.

[huckers] 12/1/2024 10:49

Taken an initial position at 1,228p. 12-18 month recovery potential and outside chance a larger group may be look at adding Burberry to their luxury brand portfolio.

[salpara111] 12/1/2024 08:16

Was waiting for this update before deciding whether to take a stake.
Pretty ugly!

[purplepelmets] 12/1/2024 07:04

This is gonna b painful

[eddie1980] 08/1/2024 11:24

EssentialInvestor - the only reason it is net debt is due to future lease obligation recognition post IFRS16, they still have large net cash if factoring in only actual borrowings. (which was a £300m bond raised at very low interest rates, in order to be rated in the debt markets.)

[justiceforthemany] 04/1/2024 19:08

I've adjusted for that. Still get 12-13x earnings.

[essentialinvestor] 03/1/2024 22:31

Justice, the PE is based on current consensus, which is subject to change!. An adjustment in estimates may be imminent.

In terms of the balance sheet, FY net debt forecast circa £800 million. For several years BRBY ran a net cash position - no longer the case.

I believe this remains a great brand (highly subjective admittedly) with potential, however significant challenges over the next year or so.

[justiceforthemany] 03/1/2024 17:48

Added a small amount.
May be snapped up.
Multi year lows.
P/E down to 12-13
Excellent balance sheet.

[huckers] 03/1/2024 14:24

This one has just come on my radar. Looks like a reasonable level to begin a position but might wait until the trading update. I expect even a reasonable one will result in another drop (as seems to be the way with many FTSE shares).

[essentialinvestor] 03/1/2024 13:39

As mentioned before the NY, the share price is loudly indicating a further profit warning to come - how much of this is already in factored in... (I can't even guess).

[action] 03/1/2024 08:53

New low 1374p . Missed it

[action] 27/12/2023 13:05

According to BBC yesterday no rush in Oxford Street...

[contrarian joe] 21/12/2023 22:12

Can't knock that,have an order in at £14 for first lot,will add accordingly, collect 4% divis & wait for sentiment to change.

[essentialinvestor] 21/12/2023 18:44

Hi Joe, bought a small amount, will try not to look at it too often.

[contrarian joe] 21/12/2023 17:45

EI,fair point, I neither have any insight into new management & their marketing skills.
You may well be right regarding some consumers less willing to pay premium prices....in the environment were in,(all seemed fine with their full year results),
obviously there's likely to be a number of short term issues (imo)causing weakness.
I'm willing to bet at these levels you should be reasonably rewarded over the next couple of years, I like the history & brand.As for timing I'll leave that to Rolex.

[essentialinvestor] 21/12/2023 16:05

I was a friend of Lee (Alexander) McQueen back in the day and Isabella Blow, Isabella introduced me to him.
So at one point I had a good inside track on the industry, but nothing like these contacts now and in my mid 50's have far less interest in fashion.

I know there have been question marks raised on their new head designer, tbf It's arguably far too soon to judge.

I think what we are seeing with Burberry is part of a much bigger story and that is some consumers less willing to pay premium prices - how long that may continue..and does trading deteriorate further..

Share price is indicating the later, but can see the case for a small speculative buy - on a medium term basis.

[contrarian joe] 21/12/2023 15:46

Updates late jan 2024.Net debt approx £800m after deducting cash from total debt.
Share price is likely reflecting a lot of bad news?.
Have traded on average of 2.5 times sales,now around 1.6.
Looking through the cycles of the business now seems a good time to start accumulating.

[justiceforthemany] 21/12/2023 15:42

Well the short sellers find out first! Corrupt LSE.

[essentialinvestor] 21/12/2023 13:55

Another warning on the way?.

[justiceforthemany] 21/12/2023 13:54

With a billion cash on the balance sheet this is a huge takeover target. Has been for years.

[action] 21/12/2023 13:10

SALE for Xmas season weaker ?