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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. 

All trading involves risk. Losses can exceed deposits.
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.

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