Down 70%, could Burberry be one of the FTSE 100’s best value stocks?

FTSE 100 stock ( ) has taken a massive hit. A little over a year ago, its share price was near 2,640p. Today however, it’s about 70% lower.

Could this be one of the Footsie’s best value stocks after its huge fall? Let’s discuss. A high-quality business I’ve always thought there’s a lot to like about Burberry from an investment perspective. I’m a ‘quality’ investor and the luxury fashion house has a lot of attributes I look for in a stock including: In theory, it has all the right ingredients to be a good long-term investment.

Multiple profit warnings However, right now, the company’s a bit of a mess. Recently, it’s announced a series of profit warnings, the latest one coming yesterday (15 June). It’s also suspended its dividend, which suggests the near-term outlook isn’t good.

One problem for the group is China, which has traditionally been a big market for the company. The economic slowdown there has impacted a lot of Western businesses including the likes of and (two stocks I hold). Another issue is that demand for luxury goods globally has cooled dramatically after a boom during the pandemic when many consumers had far more disposable income.

As a result of these two factors, comparable store sales for the 13 weeks ended 29 June (Q1 FY2025) fell 21% year on year. Earnings downgrades The problem for investors when a company’s experiencing challenges like this is that it can be hard to accurately value the business. That’s because earnings are lik.