Despite the general economic downturn, demand for luxury fashion has continued to remain robust in the third quarter, with various luxury fashion companies reporting positive demand trends. One company yet to report is Burberry (LON: BRBY), which is set to release its half-year results on November 17.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
While lower-end retailers such as Boohoo and Asos have suffered due to the cost of living crisis and supply chain issues, luxury brands such as Watches of Switzerland and Moncler have posted strong sales results, boding well ahead of Burberry’s scheduled release. Deutsche Bank recently said there was a “glaring discrepancy between luxury and retail.
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
However, Covid lockdowns in China have impacted the company, despite the more recent positive signs regarding the restrictions in the country.
In its first quarter trading update, Burberry said it continues to target high-single-digit revenue growth and 20% margins in the medium term. In addition, the company said that at the time that while the macroeconomic environment created some near-term uncertainty, its performance in Mainland China was encouraging, and based on the effective FX rates as of July 11, it expected a currency tailwind of around £190m on revenue and £90m adjusted operating profit in FY23.
Burberry shares, despite dipping in the early part of the year, are now on a bullish run, up over 7% in 2022, gaining over 24% in the last six months.
According to TipRanks data, out of 11 analyst ratings, three have Burberry at a Buy, while eight have the stock at Hold, with none at Sell. The average price target is 1,953.91p per share.
