Luxury clothing brand Burberry Group (LON: BRBY) is the best performing FTSE 250 index constituent today, despite a decline in revenues in the 13 weeks to 28 December. The share price increased 13.7% to £12.175.
Third quarter revenues declined from £706m to £659m. Americas revenues were 4% higher, but Asia Pacific revenues were 9% lower, even though Japan was 4% ahead. Comparable stores sales were 4% lower. Outerwear and scarves outperformed. There was a 4% headwind due to currency movements.
The Burberry Forward strategy was launched in November to “reignite brand desire”. Visual merchandising has been enhanced in stores. It is still early days, though.
Management is hopeful that the second half performance could offset the loss in the first half. Analysts expect a return to profit in 2025-26.