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It's been a pretty great week for Burberry Group plc (LON:BRBY) shareholders, with its shares surging 13% to UK£9.06 in the week since its latest interim results. Burberry Group reported in line with analyst predictions, delivering revenues of UK£1.1b and statutory earnings per share of UK£0.74, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Burberry Group
Taking into account the latest results, the 17 analysts covering Burberry Group provided consensus estimates of UK£2.38b revenue in 2025, which would reflect a definite 10% decline over the past 12 months. Statutory earnings per share are forecast to dive 71% to UK£0.031 in the same period. In the lead-up to this report, the analysts had been modelling revenues of UK£2.41b and earnings per share (EPS) of UK£0.089 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.
Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 7.7% to UK£7.88, suggesting the revised estimates are not indicative of a weaker long-term future for the business. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Burberry Group analyst has a price target of UK£13.30 per share, while the most pessimistic values it at UK£4.75. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 20% annualised decline to the end of 2025. That is a notable change from historical growth of 4.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Burberry Group is expected to lag the wider industry.