Our long/buy idea on Burberry made over 10% investment returns after the British Luxury retailer reported sales & new collections beating targets.
On 16th July 2019, Burberry management reported a 4% increase in LFL sales for the first quarter of the fiscal year, exciting investors as this growth doubled analyst’s predictions and illustrated the success of recently implemented collections.
Burberry’s report showed double digit growth in mainland China resulting in a large uptick in Asia Pacific Sales. Retail revenue rose to £479m and shows signs of promising future growth.
The FT Reports Burberry's New Collections Helping to Crush Q1 Targets
These results highlighted rapid growth for the luxury goods retailer driven by higher customer demand particularly in China surrounding Mr. Tisci’s unique collections.
Burberry management stated that Mr. Tisci’s collections triggered “an excellent consumer response” and “should account for around three quarters of products on sale in Burberry’s stores by next March.”
Reuters data shows Burberry shares up 10% in a day following the Q1 Earnings Release on 16th July 2019
Prior to the release of Burberry's Q1 earnings reports, Woozle’s team of primary researchers uncovered evidence of stronger LFL sales across Asia, US, and EMEA locations, increasing trends in foot traffic in comparison with this time last year due to Burberry’s new collections, and rapidly growing consumer interest due to state of the art designs. Woozle’s team also successfully predicted the greatest increase of sales coming from mainland China.
Woozle's Long/Buy Idea on Burberry Highlights Strong Customer Response to New Collections
Burberry’s 10% uptick in share price over a single day gave Woozle’s clients the opportunity to make massive returns in a short space of time. Through our proprietary primary research techniques, we were able to quickly identify the surge in popularity of new collections and issue a long/buy recommendation that allowed clients to reap these benefits well ahead of the competition.