Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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coverage Burberry (BRBY) reported an almost 30% drop in profits to 112 million pounds for the 6 months ended 30th September 2012 despite a 8% increase in total revenue growth to 883 million pounds. The luxury brand cited a one-off charge relating to the termination of a fragrance and beauty license deal as an explanation for these drop in profits. If these charges are stripped out, pre-tax profits would have been up by 6% at 137 million pounds. The shares were down 52p at 1199p.
a little more on the Seymour target..... Seymour Pierce has reiterated its 'buy' rating and 1,500p target price for luxury brand Burberry after a better-than-expected first half. "On our current numbers, the shares are trading [at 16.1 times full-year earnings] which we believe is undemanding for its long term growth prospects. […] We still consider Burberry a strong long term growth story with significant geographical and product mix opportunities," analyst Kate Calvert said.
been made before? "Broadly neutral to adjusted PBT in FY 2013/14, a transition year; earnings accretive thereafter" Rather negative imo? ty
Come in ahead of Seymour pierce's targets.
- Total revenue growth 8% underlying to £883m (up 6% reported) - Retail revenue growth 10% underlying to £577m (up 9% reported) - Adjusted PBT up 6% underlying to £173m (up 7% reported) - Reported PBT £112m (2011: £159m) - Net cash of £237m - Interim dividend up 14% to 8p · Retail/wholesale reported revenue up 7%; adjusted operating profit up 11% - Adjusted operating margin up 60 basis points to 15.5% - Better quality sales and tight control of discretionary spend - Enabled continued investment in key growth initiatives · Focused execution of key strategies - Digital innovation: Regent Street opening - Burberry World Live - Brand balance: Prorsum and London penetration increased - Non-apparel growth: mens accessories grew 40% in retail - Retail investment focus in flagship markets: new stores in Hong Kong, Milan, Rome and London; full year capital expenditure unchanged at £180-200m - Emerging markets focus: 62 franchise stores in 27 countries worldwide - Operational excellence: expanded and upgraded logistics network · Fragrance and beauty directly operated as fifth product division from 1 April 2013 - Consistent with ongoing strategy of greater brand control - Significant opportunity in under-penetrated opening price point categories - Euro181m payment to be made in H2 for ending licence relationship; £71m of which is recognised within exceptional items in H1 - Broadly neutral to adjusted PBT in FY 2013/14, a transition year; earnings accretive thereafter
Seymour Pierce is forecasting profit before tax of £165m, earnings per share (EPS) of 27.4p and an interim dividend of 7.8p.
Fashion chain Burberry suffered a rare stumble in September when it issued a profit warning, but showed signs of getting the show back on the road in its last trading update on October 11th, with the group reporting that the quarter ended on a strong note. From Burberry's interim results on Wednesday, Seymour Pierce is looking for more detail on the bringing in-house of the Interparfums' fragrance and cosmetic licence with effect from April 1st next year. The broker is also looking forward to an update on global demand, particularly China, and an understanding of what investment has been put on hold and what has not. "Having just updated the market, we expect no change to management guidance which is for H2 [second half] average retail space to increase by c14%, underlying H2 wholesale revenues to be broadly flat, FY [full year] licensing revenues broadly unchanged and FY capex [capital expenditure] £180-200m," writes Seymour Pierce analyst Kate Calvert.
Seymour Pierce has raised its target price and maintained its 'buy' rating for luxury brand Burberry ahead of the group's first-half results on November 7th.
Strong close, should close that gap at 1300 in rapid time. IMO
Burberry: Goldman Sachs raises target from 1,832p to 1,859p, buy rating kept.
£450k taken in 2 chunks today....
Burberry: Deutsche Bank keeps hold rating and 1,275p target
Burberry: Investec upgrades from hold to buy, target lifted from 1,140p to 1,300p.
Shares in luxury fashion group Burberry were registering gains on Friday morning in London after Investec returned to its bullish stance on the stock and upgraded its rating from 'hold' to 'buy'. Investec said: "The Burberry brand is far from broken, operational leverage should come through, and, whilst volatility will remain, we see long-term value here."
Citi estimates the perfumes move could dilute earning by about 3-5% in 2013 and 2014, but says that if Burberry is able to achieve best-in-class operating margins of 20% in fragrances then it would largely offset the start-up costs. Burberry is following an industry-wide trend of buying back licenses to gain more control over brands. Last year it completed the purchase of its menswear licence and took steps to reduce the number of licence agreements it has in Japan.
Burberry's decision to take direct control of its fragrance and beauty products, as announced October 11th could be a long-term driver of profits, according to figures reported by Reuters. Fragrance and beauty will be run as Burberry's fifth product division alongside accessories and womens, mens and childrens apparel. The decision to end its existing licence agreement with Interparfums and run fragrance and beauty directly from April 1st 2013 will cost the company €181m to end the relationship, but longer term should be earnings accretive.
Positive Points: Operationally, investment into flagship markets continues. In the period, 13 main stores were opened in flagship destinations that included Regent Street, London, Hong Kong, Milan & Rome. Selling space in the second half of the year is expected to increase by 14%. The group already enjoys geographical diversity, an attribute which many retail rivals such as Marks & Spencer are currently attempting to emulate. Burberry announced it will directly operate fragrance and beauty categories from 1 April 2013. Ongoing self-help initiatives maintain focus on tightly controlling discretionary spending. A progressive dividend policy continues to be pursued.
Negative Points: With over 60 stores in China, the health of the Chinese economy is a significant factor. Last month, management took steps to protect the group's long term luxury brand status, axing cheaper fashion lines in order to buoy prices. Cheaper handbags, made in Asia were reduced. Coats made from fabrics woven at Burberry's own mills in Yorkshire were increased. The lowest price for a trenchcoat has risen to about £1,000. Burberry's results are exposed to changes in demand for luxury goods, which in turn is reliant on the overall health of the economic environment, and consumer confidence. A large proportion of Burberry's sales is related to tourism (in particular Japanese tourists) and is therefore exposed to changes in international tourist flows. Burberry has a much higher exposure to fashion apparel over other luxury goods companies. The Burberry brand's appeal could fade.
Financial Highlights: Burberry reported total revenue of £883 million in the half-year to the end of September, up 8%. Retail revenue growth at constant exchange rates was £577 million, up 10%. Wholesale revenue totalled £253 million, up 5% and in line with guidance. Following last month's profit warning, sales at stores open over a year rose 1% in the three months to 30 September, the group's fiscal second quarter. Full year capital expenditure plans remain unchanged at a range between £180 million-£200 million.
Trading statement: Burberry's underlying growth remains intact. The 6% spike in the price in early trade has restored some of the company's investment reputation. As trailed in the September update, sales have been under pressure due to the double whammy of a difficult external environment and tough comparatives. The latter, at least, should ease as the year progresses. The underlying strengths of the company, which for the moment seem to have been dismissed by investors, remain intact and today's statement shows some strong underlying growth. Burberry's exposure to China in the recent past has been something of a double edged sword given that country's slowing economic growth, whilst the equally important American and European regions provide further economic hurdles. The unexpected news from the company last month severely damaged the share price performance, which now stands 22% down in the last three months as compared to a 2% rise for the wider FTSE100. Over the last year, the contrast is more marked, Burberry having lost 20% with the FTSE adding 7%. After today's update,
Company overview Burberry Group PLC is a British luxury fashion house, manufacturing clothing and fashion accessories. Its distinctive tartan pattern has become one of its most widely copied trademarks. The company has branded stores and franchises around the world and also sells through concessions in third-party stores. It runs a catalogue business and has a fragrance line. HM Queen Elizabeth II and HRH, the Prince of Wales have granted the company Royal Warrants. Burberry's trademark products are its fashionable handbags and exclusive fragrances. Burberry is quoted on the London Stock Exchange and is a constituent of the FTSE 100 Index.
that's a very good low price, if u hold for 2-3 years u gonna be rich ;) Anyway I have to wait for my profit cuz I'm still in loss :( the day will come for those with patience.
Placed a buy spread bet on at 1 pm yesterday at the price of £10:10.82 @ £3 a point. Currently £384:84 in profit !!!!!!!!!!!
Now we are approaching Christmas and the festive season Burberry should see an increase in sales.. Maybe there is more value to be had here?
coverage Burberry, which issued a profit warning last month, confirmed like-for-like (LFL) sales growth in its stores slowed dramatically in the July-September quarter, but the good news is that towards the end of the period things started to pick up again. LFL sales over the half-year were up 3%, but much of the heavy lifting was done in the first quarter, when LFL sales were up 6%, while in the second quarter LFL sales growth eased to 1%. However, that second quarter performance was better than some market observers were expecting; Seymour Pierce, for instance, was wrong footed by the late September revival as it had predicted second quarter like-for-like retail sales would be down 2%. Burberry also had good news on the operating margin front, saying the Retail/wholesale operating margin in the six months to September 30th 2012 is now expected to be at least in line with the same period last year (14.9%), rather than lower as previously guided.