Investing.com — Stocks burberry Group PLC (LON:) surged Wednesday after Goldman Sachs analysts said the luxury brands could enter a stage of strong performance.
In a note to clients, investment bank analysts described Burberry as being “uniquely positioned” for its coverage, lowering the company’s fiscal 2024 growth projections to 7.2% from previous estimates. , raised to 10.5% on a like-for-like basis. Consensus estimates put this figure at 6.3%.
“While we are aware of some uncertainties, we are positive about plans to boost store productivity, which is key to profit growth,” said analysts at Goldman Sachs. said.
UK trench coat makers’ profit margins have been squeezed compared to their Italian and French competitors, in part due to the company’s product mix. Jonathan Akeloid, who took over as chief executive from Marco Gobbetti in 2022, will eventually push annual sales to his £5 billion (£1 = $1.2053) and operating profit margin to more than 20% of his We aim to raise the
Akeroyd has called on the 166-year-old brand to refocus on its “Britishness”, which it said would help the company establish itself in the highly competitive luxury market. Lee plans to present a new collection in February.
Akeroyd also aims to increase volume sales of high-margin items such as leather goods and accessories, while boosting online demand and doubling sales per square foot in Burberry stores.
In November, Burberry reported better-than-expected quarterly same-store sales growth thanks to tourists spending heavily on its sites in key destinations such as Paris, London and Milan. Did.
The company also supported near-term guidance of high-single-digit earnings growth and margins of around 20% by the end of fiscal 2024.