Burberry reported its interim results today...

http://www.bloomberg.com/apps/news?pid=20601085&sid=a2DoivvFLf80&refer=europe

  • H1 operating profit 98.4 million pounds, up 3 percent but comparable store sales were down by "a mid single-digit percentage", dragged down mainly by its performance in the United States.

We continue to have nice positive like-for-like sales growth in our European and Asian markets, albeit it's very volatile and the daily swings are very significant....

  • Sees FY operating profit mid to lower end of market hopes
  • Cost efficiencies of up to 20 million pounds identified for the year to March 2010. It said further significant savings were under review and would be detailed in January.

In the first half of the year, luxury brands held up well despite the economic slowdown but increasingly they seem to be warning that the downturn is affecting their traditional customers (see recent announcements from luxury peers, e.g Richemont & Bulgari).

As you may recall, Burberry enjoyed a renaissance under former CEO Rose Marie Bravo and its shares soared to a record above 720p in 2007. Since then, its fortunes have waned. Shares in Burberry have lost 2/3rds of value over the last year, underperforming the DJ Stoxx personal and household goods index by 45%.

What does the future hold for Burberry?

 

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