Burberry shares surged by 15.7% to £12.38 per share after the company reported better-than-expected sales for Q4 2024.
Despite ongoing challenges, Burberry’s retail revenues for the three months ending December fell by 7% to £659 million, a decline of just 3% at constant exchange rates.
Comparable store sales dropped 4% year-over-year, a smaller drop than the 12% decline analysts had anticipated.
The company’s Asia Pacific region continued to struggle, with revenues falling 9%, and Mainland China sales down 7%.
However, the Americas saw a 4% increase in sales, and the Europe, Middle East, India, and Africa region experienced a 2% dip.
Burberry attributed the sales performance to the success of its “It’s Always Burberry Weather” and “Wrapped in Burberry” campaigns, which improved brand desirability and boosted sales in outerwear and scarves.
CEO Joshua Schulman emphasized the company’s strategic initiative, Burberry Forward, which was launched in November to rejuvenate the brand and improve outerwear sales.
Despite the challenges, Schulman expressed confidence that the strategy would deliver sustainable, profitable growth over time.
Analyst Garry White of Charles Stanley noted that while there are signs of improvement, Burberry still faces obstacles, particularly with excess stock and a lack of focus on its core outerwear category.
