Shares of Burberry Group PLC (LON: BRBY) soared about 6% on Thursday after the luxury fashion firm said it has returned to sales growth in October.
Burberry reported that its comparable sales fell 6% in the previous quarter, which is much better than a drop of 12% expected from analysts. The company was boosted by a strong rebound in sales in China, Korea and the U.S.
As a result, Burberry posted revenue of £878 million pounds for the six months ending September 26, which again topped the market consensus. Still, the reported revenue figure represents a decrease of 31% compared to a year ago.
Adjusted operating profit tumbled by 75% to £51 million. Investors liked that Burberry returned to sales growth in October. There’s a degree of uncertainty present still given that over 10% of the company’s stores in Europe are closed amid fresh lockdown measures.
“While the virus continues to impact sales in EMEIA (Europe, Middle East, India and Africa), Japan and South Asia Pacific, we are encouraged by our overall recovery and the strong response to our brand and product, particularly among new and younger customers,” Burberry Chief Executive Marco Gobbetti said.
Burberry share price soared about 6% to 1721.50p, the highest level recorded since June.
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