Burberry: 1st-quarter sales growth slightly above forecasts.
(CercleFinance.com) - British luxury brand Burberry slightly beat forecasts for the first quarter with a 4% increase in like-for-like sales, which was enough to boost the shares this morning in London.
The maker of famous camel raincoats said its revenues reached 478 million pounds in the three months to 30 June, up 3% in underlying terms year-on-year.
On a same-store basis, sales rose 4%, while the consensus was expecting 3%.
Marco Gobbetti, who recently took on the role as Burberry CEO, said he was pleased with the group's performance in the first quarter, while "mindful of the work still to do."
Analysts seem to agree on the latter part of his comments.
"Despite a slight acceleration over the quarter, it seems that during this quarter again (...), the British brand underperformed most luxury star brands such as Louis Vuitton, Hermès or Gucci and perhaps also most other luxury brands", Bryan Garnier commented this morning.
The brokerage firm believes that this is partly due to Burberry's product mix and the group's over-exposure to apparel in comparison with peers, with 52% of sales.
Shares in Burberry, up 11% year-to-date, are up another 5.2% at 1,663 pence on Wednesday morning after this news, valuing the business at over seven billion pounds.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The maker of famous camel raincoats said its revenues reached 478 million pounds in the three months to 30 June, up 3% in underlying terms year-on-year.
On a same-store basis, sales rose 4%, while the consensus was expecting 3%.
Marco Gobbetti, who recently took on the role as Burberry CEO, said he was pleased with the group's performance in the first quarter, while "mindful of the work still to do."
Analysts seem to agree on the latter part of his comments.
"Despite a slight acceleration over the quarter, it seems that during this quarter again (...), the British brand underperformed most luxury star brands such as Louis Vuitton, Hermès or Gucci and perhaps also most other luxury brands", Bryan Garnier commented this morning.
The brokerage firm believes that this is partly due to Burberry's product mix and the group's over-exposure to apparel in comparison with peers, with 52% of sales.
Shares in Burberry, up 11% year-to-date, are up another 5.2% at 1,663 pence on Wednesday morning after this news, valuing the business at over seven billion pounds.
Copyright (c) 2017 CercleFinance.com. All rights reserved.