Shares in Burberry (LON:BRBY) have fallen deep into the red in today’s session as the company posted uninspiring full-year results this morning. The blue-chip luxury goods retailer, however, said the initial reaction to creative director Riccardo Tisci’s first collections had been ‘encouraging’.
As of 08:49 BST, Burberry’s share price had given up 4.53 percent to 1,835.50p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.16 percent lower at 7,285.61 points. The group’s shares have given up more than one percent of their value over the past year, as compared with a near six-percent fall in the Footsie.
Burberry posts full-year results
Burberry announced in a statement this morning that its revenue had inched two percent higher to £2.7 billion in the 52 weeks to March 30. On a constant exchange rates (CER) basis, however, revenue dipped one percent. Adjusted operating profit fell six percent to £467 million during the reported period, and was flat on a CER basis.
“We made excellent progress in the first year of our plan to transform Burberry, while at the same time delivering financial performance in line with expectations,” Burberry’s chief executive Marco Gobbetti commented in the statement, adding that Riccardo Tisci’s first collections had “arrived in stores at the end of February and the initial reaction from customers is very encouraging”.
The FTSE 100 company meanwhile confirmed its guidance for broadly stable revenue and adjusted operating margin at CER in FY 2020.
Analysts weigh in on update
Bloomberg reported that Morgan Stanley analyst Elena Mariani had said in a note that while the London-listed retailer’s sales in the previous year were in line with expectations, the outlook suggested earnings before interest and taxes would decrease by a low single-digit percentage.
According to MarketBeat, the FTSE 100 company currently has a consensus ‘hold’ rating, while the average target for the Burberry share price stands at 1,913p.