Luxury is a fickle beast. One minute you’re the king of the catwalk, and the next, you’re staring at a balance sheet that looks like a rainy Tuesday in Stoke. If you’ve been watching the Burberry PLC share price lately, you know exactly what I mean. It’s been a wild ride, honestly.
For a while there, it felt like the brand had lost its way. They tried to go too high-end, chasing the "ultra-luxury" crowd and forgetting the people who actually buy the trench coats and the scarves. It didn't work. Sales slumped, and investors started heading for the exits.
But things are shifting. As of mid-January 2026, the Burberry PLC share price is hovering around 1,313p on the London Stock Exchange (LSE: BRBY). Over in the US, the ADR (BURBY) is sitting near $17.33. That’s a massive recovery from the dark days of 2024 when the stock hit lows near 600p.
The Schulman Effect
Joshua Schulman took the wheel as CEO about 18 months ago, and he basically threw the old playbook out the window. He’s the guy who ran Coach and Michael Kors, so he knows a thing or two about "accessible luxury."
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Schulman’s strategy, dubbed "Burberry Forward," is pretty simple:
- Get back to the basics (trench coats, scarves, checks).
- Stop trying to sell £3,000 handbags to people who don't want them.
- Fix the pricing so it actually makes sense.
It seems to be working. In the latest interim results for the period ending September 2025, Burberry finally saw its retail comparable store sales return to growth in the second quarter. We’re talking a 2% jump. That might sound small, but after two years of declines, it’s a huge win for the Burberry PLC share price.
Why China Still Matters (A Lot)
You can’t talk about luxury stocks without talking about China. For Burberry, it’s the big engine. When China sneezes, Burberry catches a cold.
Lately, the data out of the Mainland has been... okay. Not amazing, but stabilizing. In the most recent quarter, comparable sales in Greater China actually rose 3%. Compare that to the 5% drop they saw earlier in 2025, and you can see why the market is feeling a bit more optimistic.
Analysts at Zacks and Morningstar have been pointing to this stabilization as a key reason to keep an eye on the stock. If the Chinese middle class starts spending on "affordable" luxury again, Burberry is perfectly positioned to catch that wave.
The Dividend Dilemma
Here’s the part that hurts: the dividend is still MIA.
Burberry suspended its dividend payments in 2025 to save cash and shore up the balance sheet. For long-term income investors who were used to a steady 2-3% yield, this was a punch in the gut.
CFO Kate Ferry has been pretty clear that the priority right now is "value creation" and getting the business back on its feet. Most analysts don't expect the dividend to make a comeback until late 2026 at the earliest. They’re currently sitting on about £1.1 billion in net debt, and they’ve been burning through cash for restructuring.
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What the Experts Are Saying
The "smart money" is currently split. If you look at the consensus of 18 analysts tracking the Burberry PLC share price, the median target is around 1,400p. Some optimists see it hitting 1,570p if the turnaround stays on track.
- The Bulls: They love the "scarf bar" rollout and the focus on outerwear. They see the 24% reduction in inventory as a sign of a leaner, meaner company.
- The Bears: They worry about the "macroeconomic uncertainty." Basically, they’re scared that if the US or Europe hits a recession, the first thing people stop buying is a £1,500 coat.
Real Talk: Is It a Buy?
Kinda. Sorta. It depends on your stomach for risk.
If you’re looking for a safe, steady utility stock, this isn’t it. But if you believe Schulman can actually fix the brand's identity crisis, the current Burberry PLC share price might look like a bargain in two years. It’s still trading way below its 10-year average price-to-sales ratio.
One thing to watch is the £80 million cost-saving program. They’ve already cut a bunch of jobs and simplified the corporate structure. If those savings drop straight to the bottom line, the earnings per share (EPS) could surprise everyone in the next few quarters.
How to Trade the Current Trend
If you're actually looking to move on this, don't just jump in blindly. The technicals show some resistance around the 1,335p mark.
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- Watch the Support Levels: If the price dips back toward 1,200p, that’s historically where a lot of buyers have stepped in.
- Follow the Inventory: Keep an eye on the full-year results due in May. If inventory levels keep falling while sales rise, the turnaround is real.
- Monitor the US-China Trade Dynamic: Any new tariffs on luxury goods could derail the recovery instantly.
Burberry isn't just a plaid pattern; it's a massive corporate machine trying to turn a very large ship in a very narrow canal. It's slow, it's messy, but for the first time in a long time, the ship is actually pointing in the right direction.
Next Steps for Investors
Check the official Burberry Investor Relations page for the latest RNS (Regulatory News Service) announcements. Pay close attention to the "Burberry Forward" progress reports. If the company achieves its target of returning to mid-single-digit revenue growth by the end of the 2026 fiscal year, the current share price will likely be a thing of the past.