Burberry Group PLC BRBY

Possessing a brand with recognizable fashion elements such as its iconic plaids and the invention of the term "gabardine," we believe the Burberry brand to be a source of economic returns that is hard for competitors to encroach on. The company exhibits high gross margins (approaching 70%) and operating margins in the high-teen to low-20% range, consistent with other luxury companies under coverage and sufficient enough to award Burberry a narrow economic moat rating. Being the largest and only major publicly traded British luxury fashion house also sets the company apart, in our view, especially internationally, where the company garners more attention than smaller British brands, and also where the company is experiencing strong growth. We believe its brand, designs, and recognizable fashion elements occupy a unique space in customers' minds, giving it an identifiable niche in the world of luxury retail.