Burberry points to profitability while buyers are excited about the restructuring of the basics

Burberry hopes to compensate for the losses suffered in the first half of his financial year after the renewed approach of the group in the “timeless British luxury” helped boost an excellent festive trade.

Chief Joshua Schulman launched a strategic restructuring in the second half of last year in an effort to improve performance and avoid the possibility of an opportunistic acquisition.

Burberry, whose actions have lost almost half of their value in the last five years, has been emphasizing its supply of warm garments through the marketing campaign “always long ago for Burberry” of the firm, in which stars participate British as Oscar Olivia Colman winner.

He has also conducted an advertising campaign for his wheel starring the Chelsea Cole Palmer footballer.

Schulman told Shareholders on Friday that he was “encouraged” for customer response to the campaign, as well as for his festive promotion “wrapped in Burberry.”

He added: “These activations resonated in a wide range of luxury customers, which led to an improvement in the attractiveness and strength of the brand in shelter garments and scarves.”

Burberry registered a 4 percent drop in comparable quarterly sales in stores during its third quarter until December 28, exceeding market forecasts of a 12 percent drop.

Sales in America had a higher performance with an increase of 4 percent, while Asia Pacific’s revenues sank 9 percent and continental China fell 7 percent.

It occurs in the midst of a return to a cautious optimism in the world luxury industry after a postpandemic deceleration driven by rampant inflation, as well as economic problems in China, a crucial market for the sector.

The group said that the results that exceeded the forecasts mean that “it is now more likely” that its results of the second semester “compensate broadly” the adjusted operational loss of Burberry of the first semester of £ 41 million, “despite the uncertain macroeconomic environment” .

Schulman said: ‘From the launch of Burberry Forward in November, we have advanced at a good pace to advance our strategy to revive the brand desire, improve our performance and promote long -term value creation.

‘The acceleration of our main categories reinforces our belief that Burberry has the greatest opportunity where we have the greatest authenticity and that our strategic plan will generate sustainable and profitable growth over time.

“However, we recognize that it is still very early in our transformation and that there is still much to do.”

Burberry actions He shot 11.7 percent to 1,196 pence at Friday opening.

The main analyst of Robinhood UK, Dan Lane, said: “However, it seems that the point of maximum pessimism has been left behind and returning to what is known certainly intervened with investors in the final stretch of 2024”.

“If an offer arrives, from Moncler or another, it is likely to be due to the evidence that the last update of the strategy is working and the actions do not still reflect that, or the proof that it is a disaster and a buyer ” They could intervene and fix them themselves.

‘An opportunistic agreement will seem less attractive the more promising the Burberry strategy and the price of its actions.

“If something is brewing, it is likely to be more reflective than during the minimum of September and it means that now it is probably the moment when a buyer needs to get out of nowhere, before it is too late and the change really begins to advance “