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    BRBY   GB0031743007

BURBERRY GROUP PLC

(BRBY)
  Report
Delayed Quote. Delayed London Stock Exchange - 01/21 11:38:53 am
1922.5 GBX   +0.63%
12:19pFTSE 100 Ends the Week Lower, Losing Year-to-Date Gains
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02:52aTAKE FIVE : All about inflation
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European luxury stocks slide on China stagflation concerns

11/10/2021 | 09:44am EST
FILE PHOTO: A couple walk with Hermes shopping bags as they leave a Hermes store in Paris

LONDON (Reuters) - European luxury stocks were the top decliners in London, Paris and Milan on Wednesday after data showed China's factory inflation jumped in October, heightening stagflation concerns in the country, a top buyer of high-end products.

Renewed concerns over the impact of a fresh wave of COVID-19 infections in Asia overshadowed better than expected third-quarter results for Ferragamo, putting its shares on course for their biggest daily drop since June 2020, down 6%.

Shares in Kering, Hermes, Moncler, LVMH, and Burberry fell between 2% and 3%, underperforming the broader European market, with the pan European index flat by 1400 GMT.

China's factory gate inflation hit a 26-year high in October, squeezing profit margins for producers and boosting growth concerns in the world's second-largest economy.

Neil Wilson, chief market analyst at Markets.com, said rising inflation coupled with weakening Chinese import figures earlier this week were "suggestive of slower domestic demand" for European luxury brands.

Demand for high-end products in China is the main driver for the sector, accounting for a third of European luxury goods makers' sales in 2019 and 28% in 2020, according to UBS analysts.

The European luxury sector slumped 15% from August to October after China announced plans to redistribute wealth, interrupting a whopping 140% rise from March 2020 to August 2021.

The sector had recovered almost all of its summer loss since October, with analysts saying strong earnings were supporting the shares.

Graphic:European luxury sector

Economic growth in China is set to slow further in the December quarter from one-year lows set in the previous three months.

Analysts said a mix of rising COVID-19 cases in Asia and risks around developer China Evergrande Group's debt crisis could affect growth in China, further limiting earnings momentum for some luxury companies.

Goldman Sachs this week cut its forecasts for global luxury industry sales growth in 2022 by more than 33% to 9% and 2023 estimates by almost 40% to 7% amid global economic growth uncertainty.

(Reporting by Joice Alves, additional reporting Danilo Masoni; Editing by Saikat Chatterjee and Jan Harvey)

By Joice Alves


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BURBERRY GROUP PLC 0.63% 1922.5 Delayed Quote.5.94%
HERMÈS INTERNATIONAL -0.47% 1364 Real-time Quote.-11.20%
KERING -1.92% 668.8 Real-time Quote.-5.39%
LVMH MOËT HENNESSY LOUIS VUITTON SE -0.95% 697.2 Real-time Quote.-4.10%
MONCLER S.P.A. -0.82% 57.94 Delayed Quote.-8.75%
SALVATORE FERRAGAMO S.P.A. -3.50% 19.01 Delayed Quote.-12.56%
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Analyst Recommendations on BURBERRY GROUP PLC
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Financials
Sales 2022 2 795 M 3 789 M 3 789 M
Net income 2022 361 M 489 M 489 M
Net cash 2022 974 M 1 320 M 1 320 M
P/E ratio 2022 21,9x
Yield 2022 2,52%
Capitalization 7 680 M 10 414 M 10 410 M
EV / Sales 2022 2,40x
EV / Sales 2023 2,19x
Nbr of Employees 9 373
Free-Float 99,5%
Chart BURBERRY GROUP PLC
Duration : Period :
Burberry Group plc Technical Analysis Chart | BRBY | GB0031743007 | MarketScreener
Technical analysis trends BURBERRY GROUP PLC
Short TermMid-TermLong Term
TrendsBullishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 23
Last Close Price 1 925,50 GBX
Average target price 2 113,48 GBX
Spread / Average Target 9,76%
EPS Revisions
Managers and Directors
Julie Brown Director, Chief Operating & Financial Officer
Gerard Martin Murphy Chairman
Mark McClennon Chief Information Officer
Matthew David Key Independent Non-Executive Director
Carolyn Julia McCall Senior Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
BURBERRY GROUP PLC5.94%10 401
INDITEX-1.51%100 664
KERING-5.39%95 681
FAST RETAILING CO., LTD.3.57%60 601
ROSS STORES, INC.-14.74%34 425
HENNES & MAURITZ AB-1.66%31 788