Burberry Group PLC

BRBY: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	GBX 6,628.00	Gybxpdj	Psmxqhqb

Burberry's Q1 2020 Largely in Line With Expectations but Guidance for Q2 More Cautious, Keeping FVE

Jelena Sokolova

Jul 15, 2020

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).

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