Burberry Says Rebound Has Been Stronger Than Analysts Expected
Burberry Says Rebound Has Been Stronger Than Analysts Expected
(Bloomberg) -- Burberry Group Plc said the rebound in its fourth quarter has been stronger than analysts expected as the fashion industry bounces back from last year’s Covid-induced slump despite continuing lockdowns.
Sales from comparable stores will probably rise 28% to 32% in the three months through March 27, the British luxury-goods maker said in an unscheduled trading update Friday. Analysts expected a 24% increase, according to data compiled by Bloomberg. The stock surged as much as 10%.
As equity markets reach new records, Burberry is signaling that rich consumers are still splashing out. The update shows how abruptly consumer demand changes as countries shift in and out of lockdowns. The company’s retail sales were down 9% in the three months through December.
Other luxury companies have been seeing improvement, too, led by Louis Vuitton owner LVMH. Demand from Chinese consumers, who have been spending at home with travel abroad virtually impossible, lifted the company’s sales in the most recent quarter.
LVMH shares reached a record 566 euros Friday, giving the French company a market value of almost 300 billion euros ($360 billion). Burberry is worth 8.8 billion pounds ($12 billion).
Prada SpA’s retail sales have been increasing by a mid-single-digit percentage since the start of the year, Chief Financial Officer Alessandra Cozzani said Wednesday.
Burberry forecast an operating margin of 15.5% to 16.5% for the full year.
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