Burberry Share Price Forecast Ahead of AGM and Earnings

Summary:

In this Burberry share price forecast, we explain what to expect ahead of the company's AGM and the latest quarterly earnings

The Burberry share price is under pressure ahead of a busy week that will see the company deliver its earnings and hold its annual general meeting. The BRBY shares declined by more than 0.70% on Monday, which is 10% below their highest point this year. The stock is still up by more than 20% this year.

Burberry news: Burberry will be one of the few FTSE 100 companies that will publish its quarterly results this week. Analysts expect that the company will report strong sales since the retail industry has already reopened in most countries.

The quarterly results will come a few weeks after the company published its annual results that showed that a revenue of GBP 2.3 billion. It made an adjusted profit of GBP 396 million and an adjusted operating margin of 16.9%. Most of its sales came from accessories followed by mens and womens. As it has done several times before, the company generated most of its sales in Asia Pacific followed by EMEIA and Americas. Therefore, investors will be focusing on the ongoing trend in luxury shopping and the company’s forward guidance.

Burberry will hold its annual general meeting on July 14th followed by a trading update on Friday. The two will come at a time when foreign investment firms are targeting UK-based companies at record levels. They feel that the companies are relatively undervalued.

Burberry share price forecast

The daily chart below shows that the BRBY share price made a sharp drop a few weeks ago after the CEO resigned. It gapped from 2,250p and fell to a low of 1,968p. As it did that, the stock managed to move below the 50-day moving average and is currently at the 100-day MA.

Notably, this drop happened at a time when the shares were forming a rising wedge pattern that is shown in orange. A rising wedge is usually a bearish signal. Therefore, I suspect that the stock will continue falling ahead and after the company’s earnings. This trend will be confirmed if the shares move below the support at 1,970p. On the flip side, a move above the upper side of the channel at 2,150p will invalidate this trend.