Burberry H1 Results Rise, Backs Outlook; Resumes Dividend; Stock Down

Retailer Burberry Group plc (BRBY.L) reported higher profit and revenues in its first half, and maintained medium term view. The company also resumed dividend, and recommenced share buyback program. The shares were losing around 9 percent in the early morning trading in London.

The first-half profit before taxation more than doubled to 191 million pounds from last year's 73 million pounds.

Earnings per share were 35.7 pence, up from 12.2 pence a year ago. Adjusted earnings per share were 33.5 pence, compared to prior year's 4.6 pence.

Revenue for the period climbed 38 percent to 1.21 billion pounds from last year's 878 million pounds. The revenue growth was 45 percent at constant currency rates. The company said revenues are back at pre COVID-19 levels at constant exchange rates.

Retail comparable store sales grew 37 percent in the first half, while the growth was 6 percent in the second quarter, compared to 90 percent in the preceding first quarter.

Looking ahead, the company maintained medium-term guidance for high single-digit top line growth and meaningful margin accretion. The company also confirmed that it is comfortable with current year market expectations.

Further, the company said it has resumed payment of the interim dividend at 11.6p per share, an increase of 3 percent over last year.

The company also recommenced the share buyback programme, and expects to complete 150 million pounds buyback in second half of fiscal 2022.

In London, Burberry shares were trading at 1,793 pence, down 8.85 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Cryptocurrency Dogecoin's price jumped over 15% on Friday, but later lost some of the gains, after Tesla Inc. (TSLA) CEO Elon Musk announced that the luxury car maker will start accepting the meme cryptocurrency as payment for its merchandise. "Tesla merch buyable with Dogecoin," Musk tweeted on Friday. Dogecoin... US investment bank JPMorgan Chase & Co. reported Friday a profit for the fourth quarter that declined 14 percent from last year, hurt primarily by higher noninterest expense and lower credit reserve releases. Both adjusted earnings per share and revenues for the quarter topped analysts' expectations. Microsoft Corp. said its Board of Directors has initiated a review of the effectiveness of its workplace sexual harassment and gender discrimination policies and practices. The company has hired the law firm of Arent Fox to conduct the review mainly on sexual harassment investigations, including that of co-founder Bill Gates.
Follow RTT