Burberry To Return To Recent All Time Highs?
Connor Campbell | Nov 06, 2017 10:59
Though it may have hit a fresh record peak of £19.52 towards the end of October, Burberry has had a hell of a time getting there. After rising from an opening price of £14.99 to £18.38 by mid-March, the stock found itself flagging the wrong side of £16 in mid-April, only to rocket back above £18 by early June. The fun didn’t end there, with the stock briefly sinking below £16 once more in mid-July, before finding itself back on the path to its aforementioned all-time high. Burberry now sits at a current trading price of £19.11.
Back in May the company posted its full year results, which were good/bad depending on what you were willing to ignore. While pre-tax profit fell 5% to £394.8 million, it did announce a 5% hike to its dividend and a £300 million share buyback. Revenue slipped 2% to £2.8 billion, but was up 10% at a reported FX basis; the UK was the company’s main attraction thanks to the weakened pound lifting sales, with its US wholesale business its worst performer.
July’s Q1 figures were better, with like-for-like sales growing by double what analysts were expecting at 4%. Retail revenue, meanwhile, rose 3% (and 13% on a reported currency basis), marking a solid first quarter for new CEO Marco Gobetti.
Yet the most interesting news to come out of Burberry this year wasn’t its full year or Q1 figures, but the shock announcement in October that Christopher Bailey – former CEO, current chief creative officer and the man credited for the company’s turnaround – would be stepping down at the end of 2018 after being at the firm for 17 years.
Investors will be looking for a bit more detail about Bailey’s departure, and the timeframe for finding his replacement, as part of Gobetti’s new strategy on Thursday. In terms of the interim results themselves, investors will want to see a continuation of its robust first quarter comparable sales growth alongside an improvement in its profit situation.
Burberry Group (LON:BRBY) PLC has a consensus rating of ‘Hold’ with an average target price of £17.17.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
Get The App
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number.
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.