Burberry’s share price jumped this morning after the British fashion brand announced revenue and profit are expected to beat previous forecasts.
The luxury goods giant said there had been a strong rebound in trading since December and store retail sales in the fourth quarter of the financial year will be between 28 to 32 per cent higher than last year.
Shares jumped 8.38 per cent following the unscheduled trading update, and this lunchtime are still up 6.1 per cent to 2,109p.
For the full year, group revenue is expected to decline by 10 per cent to 11 per cent.
Adjusted operating margin is forecast to be in the range of 15.5 per cent to 16.5 per cent.
Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said: “You can’t keep a classic down for long and, in testament to the refreshed creative direction, Burberry’s sales have finished the year on a high.
“There were concerns the fashion icon’s products would fail to resonate, with the pandemic stopping customers from splurging on big-ticket clothing.
“The sales gap isn’t as severe as feared though, and is a textbook case of the value of a strong brand.”