Operating Margin

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Price: 17.765 USD 8.13% Market Closed

Market Cap: 6.4B USD

Declining

by 0.1%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

Operating Income

£86m

Revenue

£2.4B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

Operating Income

$86m

Revenue

£2.4B

Peer Comparison

Country	Company	Market Cap	Operating Margin
UK	Burberry Group PLC LSE:BRBY	4.6B GBP	Loading...
FR	LVMH Moet Hennessy Louis Vuitton SE PAR:MC	290.3B EUR	Loading...
FR	Hermes International SCA PAR:RMS	219.9B EUR	Loading...
KR	SBW KRX:102280	235.5T KRW	Loading...
FR	EssilorLuxottica SA PAR:EL	123.5B EUR	Loading...
CH	Compagnie Financiere Richemont SA SIX:CFR	92.3B CHF	Loading...
FR	Christian Dior SE PAR:CDI	98.1B EUR	Loading...
IN	Titan Company Ltd NSE:TITAN	3.6T INR	Loading...
FR	Kering SA PAR:KER	33.7B EUR	Loading...
DE	Adidas AG XETRA:ADS	27.2B EUR	Loading...
CN	ANTA Sports Products Ltd HKEX:2020	218.4B HKD	Loading...

Market Distribution

Min	-195 650%
30th Percentile	0%
Median	0.1%
70th Percentile	0.2%
Max	4 630.7%

Other Profitability Ratios

Burberry Group PLC
Glance View

Market Cap

6.4B USD

Industry

Textiles, Apparel & Luxury Goods

Burberry Group PLC, a stalwart in the realm of luxury fashion, weaves its narrative through a rich tapestry of heritage and innovation. Established in 1856 by Thomas Burberry, the iconic brand originated in Basingstoke, setting its foundation on durable outdoor attire, which eventually evolved into the globally recognized trench coat. The company is deeply rooted in its British heritage, emphasizing a blend of timeless elegance and modern sensibility. Burberry operates through a multifaceted business model that includes the development, design, manufacturing, and retailing of luxury clothing, accessories, and beauty products. With a robust global distribution network, it showcases its offerings through a combination of directly-operated stores, department stores, multibrand specialty accounts, and a burgeoning digital presence. This omni-channel approach not only cements Burberry's market position but also ensures that its products are consistently accessible to a discerning global clientele. The brand's financial engine thrives on a keen understanding of its target audience's aspirations, strategically aligning its product portfolio with contemporary trends while maintaining its hallmark of quality and craftsmanship. While the ready-to-wear and accessories categories form the backbone of its revenue stream, Burberry's beauty division and licensing deals add layers of diversity to its income sources, bringing resilience in fluctuating market conditions. The company also capitalizes on its brand equity through strategic marketing initiatives and collaborations, amplifying its appeal to both traditionalists and younger, trendsetting audiences. This delicate balance of leveraging luxury heritage while embracing innovation underscores Burberry's enduring stature in the highly competitive luxury market, crafting not only products but also experiences that resonate with the evolving expectations of its patrons.

View BBRYF Analysis

BBRYF Intrinsic Value

Overvaluation 12%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Burberry Group PLC
OTC:BBRYF

Peer Comparison

Market Distribution

Other Profitability Ratios

Burberry Group PLC
Glance View

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Burberry Group PLC OTC:BBRYF