Burberry: stock leaps as Q3 results outperform thanks to US
(CercleFinance.com) - On Friday, Burberry reported a much smaller-than-expected decline in sales for Q3 2024, thanks to a solid performance in the US, where the group benefited from the reopening of a store in New York.
This morning the British luxury house reported a smaller-than-expected decline of 4% in LFL retail sales for Q3 to the end of December.
In comparison, analysts were anticipating a 12% drop in sales.
While sales rose by 4% in the Americas, Burberry reported a 9% decline in the Asia-Pacific zone (-7% in mainland China) and a less pronounced downturn of 2% in Europe.
In all, quarterly sales came to £659m, down 7% as reported and down 3% excluding currency effects.
In view of this Q3 performance, Burberry expects its H2 results, which ends in March, to broadly offset the losses incurred in H1.
The improvement in business trends was driven by core businesses in coats and scarves, in line with new CEO Joshua Schulman's strategy of refocusing the brand on its fundamentals, analysts at RBC said.
Quoted in a press release, Burberry's new boss said that the company was still in the early stages of its transformation project and that there was still "much to do".
Nevertheless, Burberry shares jumped by over 16% in early trading on the London Stock Exchange in the wake of these announcements, posting the biggest rise on the FTSE 250 index and the European STOXX 600.
The stock has appreciated by some 29% since the start of the year, helped in particular by the historic results published last week by Switzerland's Richemont.
LVMH, the world leader in the sector, is due to publish its 2024 annual results next Tuesday.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
This morning the British luxury house reported a smaller-than-expected decline of 4% in LFL retail sales for Q3 to the end of December.
In comparison, analysts were anticipating a 12% drop in sales.
While sales rose by 4% in the Americas, Burberry reported a 9% decline in the Asia-Pacific zone (-7% in mainland China) and a less pronounced downturn of 2% in Europe.
In all, quarterly sales came to £659m, down 7% as reported and down 3% excluding currency effects.
In view of this Q3 performance, Burberry expects its H2 results, which ends in March, to broadly offset the losses incurred in H1.
The improvement in business trends was driven by core businesses in coats and scarves, in line with new CEO Joshua Schulman's strategy of refocusing the brand on its fundamentals, analysts at RBC said.
Quoted in a press release, Burberry's new boss said that the company was still in the early stages of its transformation project and that there was still "much to do".
Nevertheless, Burberry shares jumped by over 16% in early trading on the London Stock Exchange in the wake of these announcements, posting the biggest rise on the FTSE 250 index and the European STOXX 600.
The stock has appreciated by some 29% since the start of the year, helped in particular by the historic results published last week by Switzerland's Richemont.
LVMH, the world leader in the sector, is due to publish its 2024 annual results next Tuesday.
Copyright (c) 2025 CercleFinance.com. All rights reserved.