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Burberry bounces back

Burberry bounces back
By Euronews
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Burberry had its best trading day in more than three years on Thursday in London.

The share price of the UK’s largest luxury-goods maker surged by 13-and-a-quarter per cent, boosted by better-than-expected quarterly sales.

Sales at stores open at least a year rose 1% in the second quarter – a pleasant surprise considering they had stagnated during the first ten weeks of that period, from June to mid-August. That signals a recovery in September.

Sales growth remains six times lower than the first quarter though. Because of the economic crisis, the number of shoppers is declining.

On the other hand, the group sold a bigger proportion of its top-market Prorsum and London ranges, goods that are higher-priced.

As a result, Burberry’s revenue was up 3% at 475 million pounds – that is about 590 million euros. It’s slightly below analysts’ expectations, but the company has raised its second-half operating margin outlook: it should be in line with last year’s performance.

Burberry’s share price plunged by more than 20% a month ago after a profit warning based on stagnating sales. The day’s gain reduces its losses to 17%.

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