The investors in Burberry Group plc's (LON:BRBY) will be rubbing their hands together with glee today, after the share price leapt 31% to UK£10.05 in the week following its yearly results. It was a pretty bad result overall; while revenues were in line with expectations at UK£2.5b, statutory losses exploded to UK£0.21 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, Burberry Group's 15 analysts are forecasting 2026 revenues to be UK£2.46b, approximately in line with the last 12 months. Burberry Group is also expected to turn profitable, with statutory earnings of UK£0.19 per share. In the lead-up to this report, the analysts had been modelling revenues of UK£2.47b and earnings per share (EPS) of UK£0.18 in 2026. So the consensus seems to have become somewhat more optimistic on Burberry Group's earnings potential following these results.

Check out our latest analysis for Burberry Group

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.0% to UK£9.84. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Burberry Group at UK£14.00 per share, while the most bearish prices it at UK£4.90. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Burberry Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.02% growth on an annualised basis. This is compared to a historical growth rate of 3.2% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that Burberry Group is also expected to grow slower than other industry participants.

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The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Burberry Group's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Burberry Group's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Burberry Group going out to 2028, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted  1 warning sign for Burberry Group you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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