As Burberry reports an 11% rise is revenues for its first quarter, Drapers takes a look at what city analysts make of the British luxury brands performance.
Bubb said: “It says a lot about the high expectations for growth in the luxury goods market that the city has been disappointed to hear today that retail sales were only up by 6% at Burberry in q1.”
However he added: “The share price will be under some pressure today after today’s q1 update shows signs of being affected by the global slowdown. Total sales are up by 11%, with retail like-for-likes only up by 6%, but the market was looking for a bit more than that.”
Investec analyst Bethany Hocking emphasized that the first quarter is the smallest quarter for Burberry and is against the toughest comparison this year.
She added: “Burberry is flagging a “more challenging external environment” and we expect the shares to suffer today due to this comment and the small miss.” However Hocking said that full year guidance appears unchanged.
Nomura analyst Fraser Ramzan said he has lowered the 2013 full year comparable growth estimate from 8% to 5%. However Nomura still maintains its ‘buy’ recommendation for Burberry shares.
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