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Burberry's runway run away

Burberry's share pop on catwalk success
July 18, 2019

It’s a triumph, darling! Shares in luxury fashion group Burberry fizzed 15 per cent higher on news of a “very promising” reception to the new collection Riccardo Tisci, the creative head the company appointed last year.

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Like-for-like sales growth in Burberry’s first quarter to the end of June came in at 4 per cent, which was about double what analysts had expected. Demand was particularly strong in China and from tourists. 

The company said it expects trading to be in line with expectations for the year, but an underlying £7m currency hit is now expected to turn into a £15m benefit. Progress is also being made with plans to cut £120m of costs by 2020 and revitalise the brand - including the closure of 38 small stores, the revamp of 23 others and stronger digital engagement.