KEY TAKEAWAYS
- Burberry shares in London trading surged after the luxury group posted better-than-expected sales over the third quarter, raising investor hopes that the sector is on the path to recovery.
- The British company is in the midst of a turnaround to focus on its core products like scarves and trenchcoats.
- Burberry posted a 4% comparable store sales drop, beating analysts’ estimates.
Burberry (BRBY) shares in London trading surged after the luxury group posted better-than-expected sales over the third quarter, raising investor hopes that the sector is on the path to recovery.
The British company, which is in the midst of a turnaround to focus on its core products like scarves and trenchcoats, reported that comparable store sales fell 4% in the 13 weeks to December 28. That figure beats analysts estimates of a 12% drop, according to CNBC.
The period covered the Christmas holiday shopping period.
Burberry said that given its third-quarter performance, its second-half results are likely to “broadly offset the first-half adjusted operating loss, notwithstanding the uncertain macroeconomic environment.”
Burberry’s results follow record quarterly sales by Cartier parent Richemont. The luxury sector had been struggling after the boom following Covid fizzled and as Chinese spenders pulled back as they coped with a real estate slump.
Burberry shares in London jumped 12% in intraday trading Friday and are up by almost a quarter this year through Thursday.