Burberry's Q3 Sales Beat Estimates, Boosting Recovery Hopes
London-traded Burberry (BRBY) shares surged after the luxury group reported better-than-expected third-quarter sales. This has raised optimism among investors that the sector is recovering.
Burberry, currently undergoing a turnaround focused on its core offerings like scarves and trenchcoats, experienced a 4% comparable store sales decline. This outpaced analysts' forecasts of a 12% drop, as per CNBC. The 13-week period included the Christmas holiday shopping season.
Based on its third-quarter performance, Burberry anticipates its second-half results will "broadly offset the first-half adjusted operating loss" despite economic uncertainties.
Burberry's results follow record quarterly sales by Cartier parent Richemont. The luxury industry had faced challenges after a post-COVID boom and a decline in Chinese spending amid a real estate downturn.
Burberry shares on the London exchange climbed 12% during Friday's intraday trading and have gained almost a quarter year-to-date through Thursday.