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Reaping the benefits of reducing markdowns, Burberry saw full-price sales increase by 15% yoy in the quarter. The strong performance from its own retail and e-commerce channels, especially in the key product categories leather goods and outwear, has led the group to upgrade its expectations for FY21/22 adjusted operating profit.
The new CEO, Jonathan Akeroyd, will take up his post two weeks earlier than planned. The group gave the implication that the new CEO will continue to focus on the same
Companies: Burberry Group plc
Burberry has delivered a good start to the year. The strong full-price growth, especially in the main strategic focus categories (leather goods, outwear and shoes) showing a very encouraging trajectory.
However, the ongoing reduction in markdowns will continue to impact the performance for FY21. Although Burberry has confirmed its mid-term guidance and reaffirmed that its mid-term strategic plan will remain unchanged. The unavailability of a meaningful update on the recruitment of the new CEO a
Burberry’s stock slumped 8% after the group’s CEO unexpectedly announced his departure to join the Italian peer group Salvatore Ferragamo.
Although Marco Gobbetti will remain with Burberry until the end of FY21 and support the executive team through the transition, his departure at Burberry’s most critical turning point is likely to make the brand’s turnaround more challenging and slow it down.
Burberry has released its FY 20/21 figures (ended in March), above consensus and our expectations.
The rapid full-price sales rebound and margin progression in the second half of FY20/21 have confirmed the improved attractiveness of the brand; in particular, the strong demand in China, Korea and the US has continued to be the firepower.
However, the updated cautious guidance is indicating some weakness in terms of profitability for the near term.
Although the quarterly sales have been considerably impacted by the second wave of lockdowns and the group’s own decision to reduce markdowns, the high single-digit full-price sales growth and increased contribution in leather and outerwear categories have shown that the group is continuing to progress with its strategic priorities.
Burberry has reported its H1 21 figures and both the top line and profitability are ahead of consensus and its previous guidance. Despite good Q2 21 improvements and a continued positive trend in October, the group warns that the second wave of lockdowns and the group’s strategy to reduce markdowns may weigh on the group’s business in the second half. However, we expect the increased brand awareness of Burberry in China could help the group to mitigate the second wave pressure in EMEIA and make
As expected, the group’s business in the first quarter has been heavily impacted by the pandemic-led store closures, especially in EMEIA and the Americas.
Although the sales recovery in Mainland China was encouraging, the worldwide shrinking tourist flows and the reduction in foot traffic in reopened stores have led the group to provide a very cautious outlook for Q2 20/21.
The group’s greater dependence on travel retail and lower exposure to leather goods are making the group less resilient c
Burberry has just released an encouraging year-end trading performance.
However, although the slightly better than expected year-end sales have allowed the group to upgrade its FY19/20 revenue guidance, the ongoing political crisis in Hong Kong should continue to weigh on the group’s margin generation.
Burberry has recorded encouraging H1 19/20 figures.
Sales and adjusted operating profit were both above consensus expectations, mainly driven by the strong double-digit growth of Riccardo Tisci’s new collections.
Although the reassuring H1 figures have allowed the group to maintain FY guidance, the group’s warning about the incremental pressure on the gross margin from the ongoing protests in HK should be taken cautiously.
Sales were up 4% organically, beating the consensus of 2%. Tisci’s first collections are showing positive growth signs but are still too weak to confirm a take-off for Burberry. Guidance was unchanged.
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• Financial performance: Group revenue of £1,982.8m is +13.6% YOY and +41.3% versus FY20, representing significant market share gains versus global apparel markets that remain below pre-pandemic levels (UK: +27.3% versus market -3%, US +3.8% versus market -9%). The UK delivered a standout performance +27.3% YOY with strong growth across both established and new brands. Demand in international markets has been impacted by extended delivery times due to constrained airfreight capacity, a headwind
Companies: boohoo group Plc
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Lift Global Ventures plc to join AQSE Growth Market. The Company's investment strategy is to operate as an enterprise company seeking acquisition or investment opportunities within the financial media and technology industries. Within these broad industries, areas of focus may include: Financial news websites and other forms of “new media”, Investment research providers, Financial PR, IR, design and marketing agencies, Production studios and visual content prov
Companies: BSE CFX DPP EOG SEE SOLI SML
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Lift Global Ventures plc to join AQSE Growth Market. The Company's investment strategy is to operate as an enterprise company seeking acquisition or investment opportunities within the financial media and technology industries. Within these broad industries, areas of focus may include: Financial news websites and other forms of “new media”, Investment research providers, Financial PR, IR, design and marketin
Companies: XPF TON SCE NMT ECR MIRI BIRD DCTA
According to Proactive Investors, Bridgepoint is said to preparing to list Burger King UK on the London Stock Exchange as early as this spring. A valuation of £600m is expected.
Lift Global Ventures plc to join AQSE Growth Market. The Company's investment strategy is to operate as an enterprise company seeking acquisition or investment opportunities within the financial media and technology industries. Within these broad industries, areas of focus may include: Financial news websites and other f
Companies: SYS1 IGR SPEC RCN BEM BZT EME
We publish our more detailed forecasts for Victoria following the FY trading update and completion of the carve-out and acquisition of the Rugs and UK Carpets division of Balta Group NV. FY2022E has been flagged with revenues in excess of £970m, underlying EBITDA in excess of £155m and underlying EBIT in excess of £100m. For FY2023E, management expect EBITDA in excess of £200m. Whilst demand into FY2023E has remained strong, the shares have weakened on thoughts of tightening consumer expenditure
Companies: Victoria PLC
Companies: Made.com Group PLC
The Character Group (Character) reported a 22% year-on-year (yoy) increase in sales and an improvement in profits in the first half to February 2022, despite the ongoing impact of Covid in China (where most of the group’s manufacturing is conducted) and supply chain issues. Investment in finished goods has significantly increased to ensure product availability in H2 but the Group still generated operating cash, ending the period with net cash of £21.5m after a £13.6m share buyback.
Companies: Character Group plc
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EnSilica, intends to join AIM. EnSilica is a designer and supplier of mixed signal Application Specific Integrated Circuits (ASICs). ASICs are integrated circuits or semiconductor chips developed for a particular use or product rather than for general purpose usage. ASICs help differentiate products through optimised hardware thereby making products smaller, faster, lower power and more secure and can provid
Companies: HZM SPA AVO DMTR PXC SOLG TRT
A reassuring trading update confirms that SuperGroup continues to deliver attractive top-line growth. Admittedly, the superior wholesale performance means (as previously flagged by the company) that there is likely to be some gross margin erosion, but the focus on operational leverage should still ensure a modest improvement in operating margins going forward. Management’s commercial and pragmatic approach to expansion should mean continued success as the brand rolls out beyond its core markets
Companies: Superdry PLC
RC365 Holding has joined the Main Market (Standard). Founded in Hong Kong in 2013, the Group is a fintech solutions service provider in China and Hong Kong, and is looking to expand its payment gateway services into Europe and the UK. In connection with Admission, the Company successfully raised approx. £2m for the Group at a price of 6.2p per ordinary share. At the Issue Price, the Company's market capitalisation will be approx. £6.7m.
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Companies: WAND ABDP CRPR PEN QTX RWS
The FY22 results came in slightly below the consensus expectations. The weak Q1 23 net bookings target accounts for a back-catalogue-driven performance. The guidance for FY23 was sharply below expectations as the consensus seemed to have missed the higher-than-average marketing spend for the release of a strong pipeline of new IPs during the year. The latter disappointment calls for a cut in FY23 EPS but is unlikely to have a major impact on the consensus expectations for FY24 onwards.
Companies: Ubisoft Entertainment (UBI:EPA)Ubisoft Entertainment SA (UBI:PAR)
SDY has reported Underlying PBT and 2018/19 guidance in line with its preclose update issued on 10th May. Additionally it has announced a 25p special dividend and an 11.4% increase in its ordinary dividend. Accompanying commentary suggests further emphasis shift to capital light distribution but commitment to the physical estate despite current difficult trading.
Mixed signal but some re-assurance on most recent patterns Further range extension and availability enhancements in prospect Marketing spend to accelerate as brand grows.
Shoe Zone is upgrading FY21E Adjusted PBT expectations to £8.0m, a 22.7% upgrade to our previously published forecast of £6.5m, following initial work done as part of the ongoing yearend review process. The benefit of this upgrade also flows through to FY23E where we increase our forecasts by the same quantum. Despite the recent share price rally, we continue to believe Shoe Zone trades at a deep discount to its fair value, with a return to the dividend list anticipated in the current financial
Companies: Shoe Zone PLC