BRBY15 Jan 2013 22:06
Third Quarter trading update: Burberry benefits from strong run up to Christmas. Today's share price hike in early trade has restored Burberry to its September levels, when its profit warning hammered the stock. The update has comfortably beaten estimates, and various updates from the company since September's shock have done much to reassure investors. In particular, strong retail growth was achieved through lines such as men's tailoring and accessories, with the approach to Christmas being very successful. Burberry is also continuing to eye productivity, as well as driving new growth strategies, such as digital innovation and non-apparel sales growth. On the downside, the fragility of fashion - both in terms of the consumer and investors - was amply demonstrated in September's share price fall, whilst the general economic environment is an ongoing challenge. Prior to today, the shares had shown real signs of recovery, having risen 18% in the last three months, as compared to a 5% hike for the wider FTSE100. Over the last year the performance was more pedestrian, Burberry having added 4% and the FTSE 8%. Nonetheless, the recent market consensus upgrade of the shares to a buy seems to have been vindicated by this statement.