Investors recommended to ‘buy’ as Burberry sees double digit growth

As Burberry reports Q1 results Helal Miah, investment research analyst at The Share Centre, explains what it means for investors.
 
“After a difficult period of transition, investors will be pleased to see Burberry’s Q1 underlying retail revenue at £370m, up 12% compared to the same period last year. The company saw double digit growth in its Asia Pacific and American operations, as well as across all three main product categories. Digital sales also performed well in all regions.
 
“These numbers have been helped by strategies to engage with customers through the digital and fashion events and investors will be pleased to see four mainline stores have been opened in the last three months.
 
“We continue to recommend Burberry as a ‘buy’ for medium risk investors. We expect the various strategies in place to help drive growth, along with the general improvement in the economic backdrop. However, as anticipated, the appreciation of sterling is having a dampening effect on the sales numbers and investors should be aware we expect this to be an issue going forward, especially for a company whose majority sales are not denominated in sterling.”