Tom Winnifrith Bonus Bearcast: can anyone interpret my new nightmare, a Saint (Vin) and a sinner (Lucian) and his toxic 4
It's time to have a look again at Burberry (BRBY), shares in which I have loved for a number of years (even if I have never bought one of its products personally). But the shares have been a bit volatile so far this year, as I noted the other week with the surprise decision by the company’s CEO to leave. So whilst further insights on who may be the next CEO is more of an issue for later in the year, why are the company’s shares down today given its ‘excellent progress’ comment about year-to-date sales?
To be honest I did not think that today would be that exciting on the global stock markets. Certainly that has been the case for the vast majority of shares that I own or follow...with the exception of British luxury fashion house Burberry (BRBY), whose shares are down over 7% as I write. So why the big fall?
Another day of volatility ‘excitement’ in markets today...but you can read more of some of my thoughts on this yesterday HERE, so let’s talk about something else and - for me - that has to be luxury goods company Burberry (BRBY) which published its full year to the end of March numbers today.
Earlier this month, here, I excitedly wrote that prospects for shares in Burberry (BRBY) were strong as ‘comparable store retail sales in Q4 FY2021 are expected to be in the range of +28% to +32% higher than the same period last year’. And the reason (again) for this progress despite a world of shutdowns has been a substantial rise in demand for its luxury goods in China. That is why Burberry shares were pushing above a £21 share price at the time of my thoughts above. So why did the shares dump below a £19 share price on Thursday and Friday this week despite a broadly workable stock market in the last few weeks? Well that would be a few new thoughts from both the UK (and others) and naturally China.
About a month ago on Burberry Group (BRBY) I confirmed that ‘I still am - in short - a Burberry (China) chav lover!’. My basic thought was that its Chinese sales were rising fast - along with some still rising shares in the UK and Europe - but why has the Burberry share price risen over 8% today?
For me, a combination of earnings updates this week from the mining and banking sectors will give larger cap UK share watchers a bit of a focus. Markets so far in February have broadly copied the positive take seen last November and December, although at least it is now based on actual Covid-19 vaccine tests and being the other side of Brexit deal details. Yes - as discussed via a bunch of names such as DS Smith (SMDS), Whitbread (WTB) and Ibstock (IBST) in recent weeks - the scope for interest in cyclically recovering names remains opportunistic.
Back in early November here, I got all excited about the global luxury brand company Burberry (BRBY) on the basis that Asia - especially China - was getting closer to being half the overall sales of the business. Sales elsewhere in the world were under a bit more pressure but the historic chavtastic name felt cheap to me at about sixteen quid a share. After today’s third quarter update, the shares are up to above eighteen quid a share which is solid news for shareholders.
Whilst I am far from being a chav, I am seemingly as obsessed with Burberry (BRBY) as Essex's finest and today's interim results give me another chance to comment. Back in July I observed that 'my perception is tucking the shares away for the longer haul remains smart...just do not expect me to announce I have bought something at one of their stores' and both sentiments still seem bang on for me today...
Back in July last year I sold a big chunk of my holding in the luxury goods company Burberry (BRBY) holding. By the end of last year I had exited completely. More recently I have reestablished a position and even tipped the stock at the recent online ShareProphets event. Was this wise or chavtastically silly?
I like to think I have a little bit of knowledge about a wide range of matters but if I ever offer fashion advice on this page, then I really think you should ignore it. Fortunately my share-based love for Burberry (BRBY) has always been centred on those twin mega themes of the internet and China, rather than the new looks being developed by Riccardo Tisci and his team…
At the height of the recent market volatility, I wrote a piece talking about some shares that I would buy. The first name I mentioned was Burberry (BRBY), reflecting my thought that it was an inherently strong brand with good exposure to the still growing luxury consumption theme in China. I am pleased to see that today's first half numbers reflect this…
Well what a last week with fear - for once in recent years - in ascendancy and lots of 'worst week since February' statistics being quoted. As Tom Winnifrith noted in a recent bearcast the big honking issue is debt around the world, although tactically you can throw in a supporting cast of world trade angst, a bit of inflation bubbling up and a firm US dollar.
Hello Share Takers. So that upmarket clothes manufacturer and seller Burberry (BRBY) has been destroying its own stuff. It burned clothes, perfumes and other items to the tune of £28 million pounds in 2017. Why?
Back in January, I talked positively about Burberry (BRBY) shares and since then they have pushed up very nicely. Today's stock market is one where you have to be prepared to take a few profits too and that is my call today with the sort-of luxury goods name after reading through its first quarter trading update.
Lots of larger cap news today but I have to say most of it is pretty sh...poor quality, which of course says something about the wider market…
Hello, Share Crushers. This old punter is a great fan of traditional garb. Long black overcoats, trilbies, silk ties, that sort of thing. Sadly, larger chunks of the male population clearly don’t agree. We now mostly have scruffy jeans, trainers and baseball caps to sully our streets.
Burberry (BRBY) has just issued a first-quarter trading update, which does little to alleviate the sense that trading remains difficult. But the market is also digesting the announcement of a new CEO and management structure, which is arguably much more important than short-term trading results. What does this mean for the shares?
Hello Share Shovellers. It’s been some time since I featured a favourite company of mine, Burberry (BRBY), the makers of famous coats. But I am indebted to an article in the Guardian (TW Note: You read that rag, consider yourself on a disciplinary) for some more information on this outfitting outfit, which apparently has never before invited a journalist into its coat factories in Castleford and Keighley in West Yorkshire.
The FT reported this week that Burberry is considering the appointment of a senior manager to assist CEO Christopher Bailey (who also acts as Chief Creative Officer), although the company itself declined to comment. In my view, the negative commentary which occasionally haunts Burberry’s share price can provide some attractive and relatively straightforward buying opportunities.
Hello Share Swingers. I hope you had a thrilling Christmas. My dice with death came when a car broke down on the level crossing of a train I was travelling in. If the driver had not been alert in the dark fog, a Mack Sennet moment might have caused the deaths of scores of us. So however badly our shares turn out in 2016, we should remember that there are worse risks facing us every day of the year.
A month ago almost to the day (link here) I wrote on the luxury retailer Burberry (BRBY) that:
‘The direction of Burberry shares over the next six months does largely depend on how Chinese performance is perceived. I think they surprise these low expectations and extrapolations…And this makes Burberry shares (still) a buy today’.
Today’s formal six month numbers to the end of September released today reiterate this view.
Six weeks ago when I wrote an article for ShareProphets’ e-book The Magnificent Seven I wrote about a business with…
‘…real heritage and was founded a mere 159 years ago in 1856. It is a large business and nestles happily in the FTSE-100 supported by brands that have a growing global appeal with net cash on its balance sheet, good free cash flow generation and a progressive dividend yield of currently just below 3%. The company used to just sell its wares from an expensive shop location but today interacts with its fans and followers digitally to such an extent that a couple of years ago its previous CEO was poached by a small technology company you may have heard of called Apple to assist with their digital brand positioning’
Well more fool me. Burberry (BRBY) may have risen pleasantly in the month or so immediately after the e-book publication but today’s shocker statement and share price moves puts me at a loss today versus my tip level.
Hello Share Catchers. I’m not invested in Burberry (BRBY) the clothes shop, famous for its distinctive check designs. This is because I am generally fearful of High Street shares. However, I’ve got to admit I am tempted by this one.
I know Burberry (BRBY) check used to be chav-tastic but I am told by those that know more about these things than me that this is not so much the case anymore. Despite this Burberry cracks on with the share recently touching over 19 quid. It has pulled back a pound or so since then but after thinking about today’s trading update from the company the shares need to come back further.
Apparently, the Chinese Communist hardliners are concerned that despite their best efforts the bubble on the world's second largest economy is bursting. I would be sympathetic if the country was democratic, with free speech and human rights. But it is not, and I am not.
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