Burberry's share price hit by investors taking profits

As luxury goods retailer Burberry releases results for the first half of the year, Nick Raynor, investment research analyst at The Share Centre, explains what they mean for investors.

"Burberry's interim results announced figures in line with analyst expectations, with profits before tax increasing by 26%, and revenues up by 29%. Despite positive figures, there was little change from the trading update last month so it's not surprising investors are looking to take profits.

"Although investors may have been pleased to see the interim dividend rise by 40%, the increase is negligible for income seekers as other stocks offering higher yields are more attractive.

"Burberry was the biggest faller on the FTSE 100 in early trading as little change in the retailer's update gave investors nothing to get excited about. Burberry's share price has risen by 21% so far this year and we believe it is currently overvalued. We continue to recommend investors to take profits and ‘sell' Burberry. Investors should look to companies that will offer better income opportunities and more stability, such as Marks & Spencer, which we have recently upgraded to a ‘buy'."