Burberry Jumps on Q1 Sales (BRBY)
During Wednesday trading, shares of Burberry (LON: BRBY) are up nearly five percent.
This move comes after the company reported that first quarter 2014 sales grew 18 percent while same store sales growing 13 percent. Investments in digital infrastructure can be credited for a significant portion of these gains. China led growth with Asia Pacific and the Americas were not far behind.
Despite these strong first quarter numbers, the company did not raise 2014 guidance, which predicts moderate growth.
For the same quarter last year, Burberry recorded 14 percent sales growth and same store sales jumped six percent. That quarter kicked off a year of 7.6 percent revenue growth and a 2.2 percent drop in profitability.
Some investors are hesitant with these numbers for several reasons. First, the company’s report made no indication of earnings. While it can be expected that year over year earnings are up, it is difficult to determine the degree they are. Also, this first quarter makes up just 20 percent of full year sales. This may be the reason the company did not raise their 2014 guidance.
Shares are up 62 pounds heading into the close at 1,503 pounds.
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