Just like Coach (with their 37 percent profit increase), Burberry has also been flooded with customers.
We read in the Financial Times that "total revenues rose 6 percent to £707m in the six months to March 31, excluding currency movements. Sales from stores open at least a year rose 10 percent, with acceleration in the final quarter."
The brand’s finance director, Stacey Cartwright, suggested the expected underlying profit in the year to March 31 to be “slightly ahead” of forecasts.
This article also has some interesting musings, suggesting “there looks to be little rain on Burberry’s parade” (a clever play on words as their new collection is called April Showers and features capes, Wellingtons, umbrellas, etc.)
More importantly, the journalist concludes that, “Although the shares have doubled over the past year, the prospect for recovery, operational improvements and the possibility of a takeover as corporate activity comes back into vogue, could mean further potential..." We definitely concur.
Image courtesy of the Financial Times