SAM HART| CHARLES STANLEY
The Group will face the challenges of higher raw material prices and tough comparatives over the next year, but initiatives in retail, digital, product development and new markets underpins its confidence in the future. Excess cash will be put into the business, so no resumption of share buyback programme.
KATE CALVERT| SEYMOUR PIERCE
Burberry not only has significant geographical and product mix and leverage opportunities but operates in a market with long-term growth credentials geared in to global growth.
With Burberry forecast to grow at at least twice the rate of its peers, we believe at least a 20 per cent premium is justifiable.
KEITH BOWMAN| HARGREAVES LANSDOWN
The group’s high-end customer base is perceived to have aided performance, a fact which looks to be evidenced by a new pricing policy where core products are never marked down in price. On the downside, Spain has provided something of a drag. On balance the update is only likely to strengthen existing investor confidence.