Burberry prepares for Q1 release

Burberry CEO Christopher Bailey prepares to update the market on the company’s performance in his first quarter at the helm. 

Outside a Burberry store
Source: Bloomberg

Burberry has gone ex-dividend today after shareholders have received confirmation of their 23.2p dividend from the company. This currently gives the company a dividend yield of 2.45%, although the company’s total return year-to-date is -2.44%.  

The markets are nervously anticipating next week’s first-quarter figures as they will be the first without Angela Ahrendts at the helm.

Christopher Bailey was previously the chief creative officer for the company and the number two in command, but widely regard as having an almost equal input into the direction of the company’s image.

The change at the top of Burberry was announced in October 2013, and considering his role within the company before taking over as CEO the markets will be anticipating a smooth transition with limited complications.

A factor out of Mr Baileys control is the cooling levels of spending in the Asian markets, specifically China, as new regulations have been introduced by the government. This is particularly disappointing for Burberry because it has been one of the most successful companies in restructuring its sales away from Europe and into Asia.

The Shares are off today, currently in line with dividend payments, and the 1440p level has proven to be supportive in the last month. Assuming the shares can continue to close above here, a fresh move higher should develop.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.