Burberry expects to beat market estimates for full-year profit and revenue

Burberry Group plc (LON: BRBY) said on Friday that its sales recovered sharply since December. The company expressed confidence that its profit and revenue is expected to beat market estimates in its final quarter.

Burberry shares jumped roughly 8% in premarket trading on Friday. Including the price action, the stock is now exchanging hands at £21 per share versus £18 per share at the start of 2021. If you want to invest in the stock market online, you will need a reliable stockbroker – here’s a list of the top few to make selection easier for you.

Burberry’s Q4 comparable-store retail sales are likely to grow by up to 32%

Burberry said that its fourth-quarter comparable-store retail sales are likely to see an up to 32% increase on a year over year basis. The luxury fashion house said:

“Since December, we have continued to see a strong rebound and now expect revenue and adjusted operating profit to be ahead of consensus expectations.”

For the full financial year, Burberry forecasts a 10% to 11% decline in total revenue. It expects its adjusted operating margin to fall between 15.5% and 16.5% this year. At constant exchange rates, experts, on the other hand, are calling for a 13% decline in the full-year group revenue.

In the prior quarter (Q3), the London-based company that is popular for its trench coats and leather goods had recorded a 9% decline in sales, as per the report published in late January.

Burberry attributes the Q4 sales growth to South Korea and mainland China

According to Burberry, sales in Europe remained under pressure in the fourth quarter due to the COVID-19 restrictions. The decline, however, was offset by growth in Asia that it attributed particularly to South Korea and mainland China.

The ongoing health emergency has so far infected more than 4.2 million people in the United Kingdom and caused over 125 thousand deaths. Burberry is scheduled to report its annual financial results on 13^th May.

Burberry’s announcement comes a day after its rival luxury group, Prada, also said that sales and profit saw a significant rebound in the fourth quarter, on the back of robust sales in China.

Burberry Group performed fairly downbeat in the stock market last year with an annual decline of close to 20%. At the time of writing, the British luxury fashion house is valued at £8.61 billion and has a price to earnings ratio of 414.33.