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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
Companies: Burberry Group plc
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.
Burberry has reported lacklustre sales in FY18 but in line with expectations. Profits were higher than expected thanks to higher cost savings. The guidance of flat revenue and adjusted profit was maintained for FY2019.
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Companies: Frontier Developments Plc
Unilever’s bid for GSK’s Consumer HealthCare division is causing a stir, as it seems totally unreasonable. The group was asked to move on portfolio rotation, but definitely not to be so ambitious at the risk of penalising shareholders.
Companies: Unilever PLC
FY21A Results were well flagged in November’s trading update. Today’s announcement reveals the Group is now debt free and reiterates its intention to return to the dividend list in the current period. Shoe Zone has a clear and well-defined plan to transform its store portfolio and grow its digital offer through its shoehub platform, which we believe will deliver a well-balanced retail model that can win market share and drive profitable growth.
Companies: Shoe Zone PLC
Genflow Biosciences, a UK-based biotechnology company focused on longevity and the development of therapies to counteract the effects of aging and diseases associated with advanced age intends to float on the Main Market (Standard). The Company will become the first longevity biotechnology firm to list in Europe. Genflow has raised £3.7m in an oversubscribed placing, conditional upon admission becoming effective. The flotation will value Genflow at approximately £23.4m.
SuperSeed Capital Limited
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Accrol has released a trading update highlighting further inflationary cost pressures guiding FY22E adjusted EBITDA to be significantly below FY21A.
Companies: Accrol Group Holdings plc
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Companies: MJ Gleeson PLC
Games Workshop Group’s (GAW’s) H122 results reflect lower year-on-year revenue growth after a very strong FY21, as expected, with positive comments on new launches, specifically the third edition of Age of Sigmar. Ongoing internal investment to support future growth and new external cost pressures led to a reduction in operating profit pre-royalties, which was more than offset by the notable increase in royalty income. As previously flagged, the shape of our FY22 forecasts has changed to reflect
Companies: Games Workshop Group PLC
Accrol has released H1 results, which are 7% below last year’s level at the adjusted EBITDA level at £5.0m despite significant supply chain disruption and cost escalation. We made our earnings adjustments in the trading update last week but reduce our net debt forecasts by 13% to £23.9m reflecting lower capital expenditure investment. We believe more can be done to reduce this through working capital efficiencies, but we have left our assumptions on this unchanged for now.
Sanderson Design Group (SDG) has announced a trading update for the current financial year ending 31 January 2022 (FY22E). Strong performances, most notably from the group’s manufacturing and licensing activities, have resulted in the Board’s expectation of adjusted profit before tax of at least £12.0m, compared with the £7.1m delivered in FY21. This equates to an increase of at least 70% over FY21. Our upgrade to £12.0m represents a 14% increase on our previous adjusted PBT forecast of £10.6m.
Companies: Sanderson Design Group PLC
Companies: Frasers Group PLC
Trackwise Designs has developed a proprietary, proven technology, IHT, for manufacturing extremely long, flexible circuits that can replace conventional wiring harnesses. This disruptive technology is applicable to many industries including electric vehicles (EVs), medical devices and aerospace. Since listing in July 2018, Trackwise has invested substantially in capacity, acquiring Stevenage Circuits in March 2020 and a new site in Stonehouse in April 2021. The new site is scheduled to commence
Companies: Trackwise Designs Plc