Burberry jumps 10% on surprise retail growth boost
The retailer was the biggest climber on the FTSE 100 this morning after it reported a positive surprise in figures – with total revenue growth up 8%, alongside a 10% jump in retail growth for the first half of the year.
The retailer was up 9.27% at £10.97 in mid-morning trading.
The sharp gains reverse some of the major fall seen last month, after a profit warning sent shares plunging.
The luxury brand dropped nearly 20% last month after it announced profits would be at the lower end of forecasts, and it has remained in the doldrums until today.
However, leading managers were rewarded for toughing it out today after the jump.
Burberry chief executive officer Angela Ahrendts said today: “Against record prior year comparatives, Burberry delivered 8% total revenue growth and 10% retail growth in the first half, albeit slowing in the second quarter.
“In a more challenging external environment, footfall declined but brand momentum remained strong, particularly with our higher spending luxury consumer.”
Burberry helped push the wider FTSE 100 higher this morning, with the index up 0.5% at 5,803 points.