Burberry Shares: A £10,000 Investment 10 Years Ago – What’s It Worth Now?

Burberry’s stock has surged recently, but long-term investors still face heavy losses. Is now the time to buy the FTSE 250 luxury brand?

Burberry (LSE: BRBY) has faced significant challenges in recent years, leading to steep declines in its share price. A decade ago, the British fashion house was a FTSE 100 stalwart—but today, it languishes in the FTSE 250, and investors who bought in 2015 are sitting on substantial losses.

How Much Would £10,000 in Burberry Shares Be Worth Today?

Had you invested £10,000 in Burberry shares on 14 May 2015, your stake would now be worth just £5,528—a 44.7% loss.

However, dividends over the past decade (excluding the pandemic-hit 2020) have softened the blow. With a total dividend payout of 408p per share, the adjusted return on a £10,000 investment would be £7,841, representing a -21.6% total loss.

Why Are Burberry Shares Surging Now?

Despite another dismal earnings report, Burberry’s stock jumped nearly 18% on 14 May 2025. Here’s why:

• Fourth-quarter sales (-6%) beat expectations by 2%, sparking optimism about its turnaround plan.

• The company’s cost-cutting measures and renewed focus on British heritage and outerwear are showing early signs of progress.

• Investors are betting that Burberry’s “Forward” strategy will revive brand appeal and profitability.

Burberry’s Latest Financial Snapshot (FY 2025)

• Revenue: £2.5bn (-17% YoY)

• Adjusted operating profit: £26m (-94% YoY)

• Pre-tax loss: £66m (vs. £383m profit in 2024)

• Comparable store sales: -12% (Asia: -16%)

Management warned of ongoing macroeconomic uncertainty, particularly in China, its key market. Still, they expect margin improvements from cost-saving initiatives.

Should You Buy Burberry Shares Now?

While the recent share price surge suggests investor optimism, risks remain:

✅ Potential Upside:

• Turnaround strategy gaining traction

• Strong brand heritage and global recognition

• Cost efficiencies could boost margins

❌ Key Risks:

• Luxury demand remains weak amid economic uncertainty

• Heavy reliance on China, where spending is volatile

• Fierce competition from rivals like LVMH and Gucci

Verdict: Wait for Stronger Recovery Signs

Burberry’s rebound is still in its early stages, and the luxury sector faces headwinds. While the stock may look attractive after its recent jump, more evidence of sustained growth is needed before considering an investment.

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