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Star quality: Great Britain’s Olympic 800m champion Keely Hodgkinson
Burberry shares have recorded their best week since 2009 after China pledged to revive its ailing economy.
The stock rose another 7 percent yesterday, bringing gains over the last five trading days to 17.5 percent.
That was its best week in 15 years and came as shares in a host of luxury goods firms, including LVMH, posted gains.
The rally came after the Chinese central bank launched its biggest stimulus package since the Covid-19 pandemic to boost the world’s second-largest economy.
President Xi Jinping promised there would be more to come.
This boosted luxury goods stocks that have been struggling for months amid a drop in demand in China.
The People’s Republic is one of the largest markets for high-end fashion and accessories. Burberry has had a particularly torrid time with its shares falling to their lowest level in 14 years. It was even kicked off the FTSE 100 index earlier this month.
The rally in recent days, which gives Burberry a value of £2.6bn, will be a welcome boost for the beleaguered trench coat maker’s new boss, Joshua Schulman.
Other luxury giants that did well yesterday included LVMH, owner of brands such as Givenchy, Celine, Stella McCartney and Louis Vuitton.
Shares in Bernard Arnault’s fashion group rose 3.7 percent on the Paris stock exchange, taking gains this week to more than 19 percent. He is among those reporting that sales of expensive products – from champagne to handbags – have fallen in Asia this year.
Birkin bag maker Hermes gained 16.5 percent this week and Cartier owner Richemont added more than 18 percent.
Schulman became head of Burberry in July, when Jonathan Akeroyd was ousted.
The new chief executive faces a difficult turnaround mission, while the group’s bargain valuation means it has been considered a private equity takeover target.
The shares are still a long way from when they hit a high of almost 2,650p in April last year.
Burberry saw numerous stars attend its London Fashion Week show earlier this month, including model Iris Law and Team GB Olympic 800m champion Keely Hodgkinson.
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