Burberry Shares Rise Following Increase In Sales

Burberry (LON: BRBY) shares gained in early Thursday trading after the company released its interim results for the period ended 1 October

The luxury fashion brand’s shares are up 0.6% following the release. 

Burberry revealed that revenue during the quarter rose 11% to £1.35 billion, above analyst expectations of £717.6 million.

The rise in revenue demonstrates the continued demand resilience for high-end and luxury fashion brands, with the customer base less impacted by the surge in inflation this year. Last week, Watches of Switzerland revealed a jump in revenue, stating that “demand continues to exceed supply.”

However, Burberry has been impacted by the Covid-19 lockdowns in China due to its high exposure to the region. 

Burberry’s comparable store sales increased 5%. Excluding mainland China, comparable store sales gained 15% in Q2.

Looking ahead, the company said it expects to maintain its near-term guidance to FY24, although remaining cautious of the challenging macro environment. The group has established a new medium-term target to grow sales to £4 billion.

“Burberry has an extraordinary legacy, a unique British heritage and a very strong platform to build on, as shown in our half-year results,” said Jonathan Akeroyd, Chief Executive Officer. “Our focus in this next phase is on growth and acceleration.”

Therefore, the company states it plans to “refocus on Britishness” under its new creative designer Daniel Lee.

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