24 January 2025
If you are covering Burberry’s Q3 trading update, please find comment below from Mamta Valechha, consumer discretionary analyst, Quilter Cheviot:
"While Burberry's Q3 revenue growth was 4% down, it is significantly ahead of the consensus expectation of 12% down. There are several factors that have contributed to this positive surprise. Firstly, Richemont's recent results indicated an overall improvement in demand across all countries, and Burberry has also experienced a sequential improvement across all regions, especially in the US.
“Additionally, Burberry's efforts to clear out inventory through substantial discounts have helped boost sales and manage stock levels effectively. It's also encouraging to see that Burberry's back-to-basics strategy might be starting to show positive results, resonating well with consumers.
“Burberry has upgraded its FY25 operating profit guidance. Management now indicates an increased likelihood that the second-half profit will broadly offset the first-half loss, which is a more optimistic outlook compared to their previous stance of uncertainty regarding the second-half results.”
