Financial PerformanceBurberry reported a more cautious-than-expected wholesale guidance for the upcoming period, expecting around a 25% decline.
Market ExpectationsWith a softer luxury consumer backdrop, Burberry faces difficulties in achieving a brand turnaround, leading to a lack of earnings transparency as the brand resets for growth.
Profitability ConcernsGross margin declined due to stock provisions and investment in product, coupled with a flat dividend proposal despite significantly lower free cash flow.