Elevating Luxury: Burberry Group's Brand Repositioning Amid Robust Demand - Analyst Raises Price Target Ahead Of FY23 Earnings - Burberry Group (OTC:BURBY)

Telsey Advisory Group analyst Dana Telsey reiterated the Market Perform rating on the shares of Burberry Group PLC BURBY and raised the price target from £24 to £28.
The luxury fashion brand will report FY23 earnings on Thursday, May 18.
Ahead of earnings, the analyst raised the estimates to reflect momentum across the international luxury space following strong reports from several peers over the last few weeks.
The analyst expects Q4 retail comparable growth of 14% (from +7% prior), in-line with the market's expectations.
2H23 sales growth is expected to be 10% to £1.77 billion (from £1.73 billion) versus the consensus of £1.76 billion, FY23 EPS of £1.20 versus £0.94 last year and consensus of £1.20.
On the heels of last year's leadership transitions, including new CEO Jonathan Akeroyd and new creative director Daniel Lee, Burberry announced two more leadership appointments since its FQ3 trading update in January, noted the analyst.
Additionally, Burberry announced it was acquiring a business from Italian supplier Pattern SpA for quilt and down ready-to-wear production in late March for €21 million.
The analyst expects to see more clarity on the new leadership and acquisition.
The analyst sees BURBY as positioning itself for healthier long-term growth as it elevates its brand, product and customer experience, by raising AURs and driving new customer growth along with investments in stores and digital capabilities.
However, the company has been working to reposition the brand through a robust luxury demand environment, which could potentially slow against difficult compares and an uncertain macro backdrop.
Price Action: BURBY shares are trading lower by 0.63% at $31.30 on the last check Monday.

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