BURBERRY, the largest British luxury goods maker, rose the most since 2002’s initial public offering in London after the company reported a partial recovery in retail sales growth since September’s profit warning.
The shares gained 13 per cent to 1,136 pence, spurring an advance in luxury goods stocks across Europe.
LVMH Moet Hennessy Louis Vuitton rose 3.8 per cent to €122.95 in Paris. Financière Richemont climbed 4.5 per cent in Zurich.
Sales at stores open at least a year rose 1 per cent in the second quarter, London-based Burberry said yesterday, an improvement on the unchanged performance it reported on September 11th for the first 10 weeks of the period.
The retailer also increased its guidance for the second-half retail and wholesale operating margin. The profit measure will be in line with last year, according to Burberry, which had previously predicted a decline.
“Demand has not fallen off a cliff,” Kate Calvert, an analyst at Seymour Pierce in London, said in a note.
Ms Calvert raised her recommendation on Burberry to buy from hold.
The higher-priced Burberry Prorsum and London ranges outperformed in the second quarter compared with the entry-priced Burberry Brit range even as shopper numbers slowed, chief financial officer Stacey Cartwright told reporters.
The two more expensive ranges represent 49 per cent of apparel sales, a six percentage-point gain compared to last year. – (Bloomberg)
