The shares of Burberry (LSE: BRBY) climbed 2% to 1,490p this morning after the luxury fashion retailer reported an outstanding 17% jump in first-half sales to over £1bn.
Burberry, which has enjoyed remarkable success in China in the last few years, reported another period of double-digit revenue growth in the region. In the Americas meanwhile, same-store sales grew at a high single-digit rate, and new stores were opened in both Brazil and Mexico.
Chief executive Angela Ahrendts, who will leave to join Apple next year, remarked:
“We remain focused on executing our retail, digital and marketing strategies in the all-important third quarter and in what remains an uncertain macro environment. The senior team continues to balance brand appropriate revenue growth, selective investment and infrastructure efficiencies to drive sustainable profit growth across the portfolio, especially with the significant long-term potential of our fifth product division, Beauty.”
With a market cap of £6.6bn, Burberry shares trade at 19 times expected earnings, and offer a prospective dividend yield of 2.3%.
Of course, whether today’s impressive growth figures and that valuation make Burberry shares a ‘buy’ remains your decision.
