Burberry share price slips despite strong results
The company’s share price fell 5.27 per cent after chief creative and CEO Christopher Bailey warned of a ‘difficult external environment’ which partially offset reduced currency headwinds as the pound weakens against the dollar.
Bailey said: “Looking ahead, while mindful of the more difficult external environment, we have never been better prepared internally for the all-important festive periods, with our teams intensely focused on delivering outstanding products and experiences, alongside continued investment to drive productivity and profitability over the long term.”
According to Mike van Dulken, head of research at Accendo Markets, the dip in Burberry’s share price is a reaction to management’s cautious take on the global economy.
He says: “While foreign exchange headwinds had been flagged, much of any recent respite may be offset by today’s profit worries. The shares are testing a 21-month trendline of rising support at 1430p, a break below which could see it revisit levels last seen in 2013.”
This is despite an increase in total retail revenue of 15 per cent to £748m, with key drivers including rainwear, women’s Prorsum, leather bags and men’s tailoring. The retailer closed eight global stores and opened nine in the six months to the end of September.