Burberry remains a ‘hold' for investors despite good growth figures

As Burberry updates the market with Q3 figures Helal Miah, investment research analyst at The Share Centre, explains what it means for investors.

"Burberry's Q3 trading update has pleasantly surprised the market after reporting total revenue for the quarter up 9%, to £613m. Its biggest gains came from the retail division, which grew revenues by 13%. Of this, comparable store sales grew 6% with the balance from new retail space.

"In a difficult quarter where overall footfall remained soft, initiatives helped customer conversion rates and in mainline stores customers displayed an appetite for higher priced styles, helping to drive revenues. As with other retailers, we have also seen the positive impact investing in its online offering has had on sales.

"Emerging markets will most likely represent the company's best future growth potential so investors will be pleased to see store sales in the region grew in the double digits. More moderate growth was seen in the US and a flat performance in Europe. The company has recovered almost 40% after their profits warning in the previous quarter however, although we like Burberry we are vigilant of the economic headwinds and continue to recommend investors ‘hold' for now."

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