BRBY.L - Burberry Group plc

LSE - LSE Delayed price. Currency in GBp
1,480.00
+16.50 (+1.13%)
At close: 4:35PM BST
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Previous close1,463.50
Open1,480.00
Bid1,462.50 x 0
Ask1,463.00 x 0
Day's range1,436.00 - 1,483.00
52-week range1,017.00 - 2,362.00
Volume2,024,987
Avg. volume2,121,140
Market cap5.99B
Beta (5Y monthly)0.84
PE ratio (TTM)17.09
EPS (TTM)N/A
Earnings dateN/A
Forward dividend & yieldN/A (N/A)
Ex-dividend date19 Dec 2019
1y target estN/A
  • Burberry Group plc (LON:BRBY) Insiders Increased Their Holdings
    Simply Wall St.

    Burberry Group plc (LON:BRBY) Insiders Increased Their Holdings

    We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly...

  • Luxury Trendspotting Isn't Easy in the Covid-19 Age
    Bloomberg

    Luxury Trendspotting Isn't Easy in the Covid-19 Age

    (Bloomberg Opinion) -- Almost three weeks ago, the American retailer J. Crew Group Inc. filed for bankruptcy after it fell out of fashion. But there’s one item from the once-feted store that shoppers just can’t get enough of: masks. The most recent batch of nonmedical face coverings in its signature fabrics — plain blue shirting and blue-and-white stripes — has sold out on its British website.Upmarket, stylish face coverings could provide a bit of a boost in a coronavirus-strewn landscape, where luxury goods sales are expected to drop as much as 35% this year, according to Bain & Co. estimates. To give some idea of the pent-up demand, fashion search platform Lyst said searches for masks are up 1,600% over the past month, compared with a year earlier.   That’s sparked a huge debate in the luxury industry as to whether to cash in. After all, if we’re going to have to wear masks anyway, why not make them chic?It may be tempting. At the height of the crisis, many fashion houses — including LVMH’s Louis Vuitton and Christian Dior; Kering SA’s Gucci; Prada SpA; Burberry Group Plc; and Ralph Lauren Inc. — repurposed some production facilities to make personal protective equipment for donation to medical workers on the front lines. Burberry is poised to take delivery of a special mask-making machine at its mill in Keighley, Yorkshire. But the items will be for donation, not for sale in its shops. And they certainly won’t be made out of its iconic red, white, black and tan check.While the brands have gained the requisite skills, there are considerable risks associated with turning masks into fashion statements. So far, the bling behemoths are wisely keeping a respectable social distance.If luxury goods companies were to make masks for profit, not only would they need to look stylish, but they would probably have to boast some health effectiveness, too. And they’d have to be expensive to fit with any luxury brand’s high-end prices. For example, a Louis Vuitton monogrammed mink-fur sleep mask — perfect for catching some shuteye on that first-class flight — costs 700 pounds ($859).The danger is that luxury groups would be seen as profiteering from a health-care emergency. What’s more, according to consultants at McKinsey & Co., consumers shift to more subtle “silent luxury,” rather than in-your-face bling, after a large-scale crisis with a heavy emotional toll. What is perceived as unethical behavior — or simply ugly consumerism — could turn off customers, especially younger shoppers who are particularly conscious of brands’ social values.One way to get around this would be to give a percentage of the profits to good causes, or to donate one mask for every one sold. J. Crew has donated 75,000 single-use masks to Montefiore Health System hospitals in New York.Even if the pitfalls around profiteering are surmounted, there are other perils. Luxury is about feeling good. Brands must weigh whether they want to be associated with a pandemic and its huge human and economic toll. And although masks can have replaceable filters that extend their use, it’s unlikely people will hold onto them for long. Being disposable is anathema to luxury goods, from Hermes handbags to Cartier watches, for which heritage is crucial.That doesn’t mean face coverings won’t work for some brands. For example, Off-White, the streetwear label from DJ and designer Virgil Abloh, who is also the artistic director for Louis Vuitton’s menswear, has been producing masks for some time. Off-White’s $95 arrow-logo face mask was the most in-demand men’s fashion item in the first quarter, according to the Lyst index, which measures clothing and accessories searches on its own site, Google and other social media.Streetwear masks, along with heavy boots and multi-pocket coats, are part of an apocalyptic look that began to emerge before Covid-19. Serving to partly conceal one’s identity and repel other urban hazards like pollution, masks are a good fit with younger, edgier brands, such as the aptly named Anti Social Social Club. That’s not the case for traditional luxury.Consequently, the big fashion houses would be better off focusing their attention on items that can be accessorized with masks, or adapting products to changing needs. Luxury resale site Vestiaire Collective saw a 45% increase in orders for scarves, including Hermes’s classic silks, in the last week of March, compared with the previous seven days, and demand has remained elevated. Brands could experiment with supersized sun visors to ensure social distancing or extended collars that could double as face coverings.As the world emerges from the pandemic, and things become less emotionally charged, consumers may give luxury brands more permission to sell them protective clothing. For now, any move to do so will likely be a one-off to grab attention on the catwalk or Instagram. The pop star Billie Eilish, for one, donned a Gucci custom double-G-emblazoned mask for the Grammy Awards in January. While Gucci’s decision not to commercialize the product means passing up millions of euros of sales, it’s the right call.  This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Burberry pulls dividend as luxury takes 'time to heal'
    Reuters

    Burberry pulls dividend as luxury takes 'time to heal'

    Britain's Burberry said the luxury fashion industry would take time to recover from the profound impact of the coronavirus outbreak that lowered its comparable sales by 27% in the final quarter and led it to scrap its final dividend. Shares in Burberry rose 2.6% at 0950 GMT as the sales fall was less than the 31% expected by analysts. Chief Executive Marco Gobbetti said Burberry had been making progress in repositioning its brand before the "profound impact" of the novel coronavirus.

  • U.K. Posts Record Budget Deficit; Retail Sales Drop on Virus
    Bloomberg

    U.K. Posts Record Budget Deficit; Retail Sales Drop on Virus

    (Bloomberg) -- Britain posted a record budget deficit in April as the government unleashed an unprecedented package to prevent the collapse of the virus-stricken economy.The figures reflect the cost of interventions announced by Chancellor Rishi Sunak, including paying the wages of 8 million furloughed workers, a surge in welfare claims and the hit to tax revenue as the economy plunged into recession. The price may yet go higher the longer the lockdown restrictions last.While the government’s efforts have protected jobs, many are still struggling. Authorities said Friday banks should extend mortgage holidays for homeowners facing hardship by a further three months.The devastating impact of the virus was also on display in retail sales figures, which dropped by almost a fifth in April. Luxury goods maker Burberry announced it was unable to give guidance for next year as half of its stores are currently shuttered.The deficit of 62.1 billion pounds ($76 billion) -- the most since modern records began in 1993 -- was as much as in the whole of the previous fiscal year and almost three times the previous peak. Even during the financial crisis, monthly borrowing was never more than 22 billion pounds.The pound declined 0.1% to $1.2206 and is the biggest loser among its Group-of-10 major peers this quarter, sliding around 1.7%. But U.K. gilt yields remain near a record low, thanks in part to the Bank of England’s bond-buying program.What Bloomberg’s Economists Say“By announcing an enormous QE program in March, the BOE has provided a stable source of demand in the gilt market which has helped keep borrowing costs at record lows despite the government unleashing an enormous fiscal stimulus. We think sticking with that policy mix would be the most effective way of supporting the economy as it recovers.”-Dan Hanson. Read his U.K. INSIGHTBOE Deputy Governor Dave Ramsden is open-minded about pushing the benchmark interest rate blow zero, he said in an interview with Reuters published Friday. The recovery may take longer than expected and the central bank may expand quantitative easing next month.Central government spending surged 57% compared with April last year. Revenue meanwhile plunged 27%, with cash receipts of value-added tax falling to zero amid reduced consumer spending and a deferral scheme that enables businesses to pay the sales levy later. Net debt including Bank of England programs jumped to almost 98% of gross domestic product, the highest level since 1963.Direct government measures have already cost more than 100 billion pounds, according to the Office for Budget Responsibility, which now expects a shortfall of over 300 billion pounds, or 15% of GDP, this fiscal year.That’s left a debate raging over how Britain should pay the bill. Borrowing costs are at record lows and pressure is mounting on the government not to return to the era of austerity and instead reduce the burden by letting growth rip.“If the increase in borrowing is a one-off then one option could be to manage down the elevated debt stock gradually over many years,” said Isabel Stockton, research economist at the Institute for Fiscal Studies. “Should higher borrowing endure –- for example, because the economy doesn’t fully bounce back -– then tax rises or spending cuts would be needed if borrowing is to be returned to its pre-crisis path. Any additional spending pressures arising from the current crisis would also put upward pressure on taxes.”Despite some easing of the lockdown measures in place since March 23, shops and businesses remain closed, putting the country on course for its deepest recession since the early 1700s.The most expensive of the government support measures is the Job Retention Scheme, which cost 14 billion pounds in April and led to an upward revision for March, the ONS said. The central government net cash requirement, the basis for bond issuance, totaled a record 63.5 billion pounds last month.The government is also providing loans to businesses, although even that could have lasting damage on the public finances. A survey by the Business Banking Resolution Service found that more than 40% of firms do not intend to repay money taken out through guaranteed loan plans such as the Bounce Back Loan program and Coronavirus Business Interruption Loan Scheme. Government loan plans have has already paid out more than 21 billion pounds, according to the Treasury.Read more:How Sunak’s $150 Billion Virus Aid Package Is Being Rolled OutBOE’s Ramsden Says He’s Open Minded on Negative Interest RatesBurberry Sees Signs of Hope in Asia Despite Deep Slump Elsewhere(Adds loan survey, VAT details, Institute for Fiscal Studies comment)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Neiman Goes Bankrupt, Idled by Virus and Crushed by Debt
    Bloomberg

    Neiman Goes Bankrupt, Idled by Virus and Crushed by Debt

    (Bloomberg) -- Neiman Marcus Group Inc. filed for bankruptcy after efforts to manage its crushing debt load unraveled amid the spreading coronavirus pandemic.Creditors will take control of the luxury department store chain, according to plans outlined in a Chapter 11 petition filed in Houston. The move gives the Dallas-based chain a break by letting it stay in business while management works out a recovery plan.The company, led by Chief Executive Officer Geoffroy van Raemdonck, said it has support from a substantial majority of its creditors, who agreed to put up $675 million to get Neiman Marcus through the court process. They’ll also provide $750 million in exit financing.When the company emerges from bankruptcy in early autumn, management expects to see about $4 billion cut from its existing debt load -- the legacy of a 2013 leveraged buyout by current owners Ares Management Corp. and the Canada Pension Plan Investment Board. Neiman listed debt obligations of about $5.5 billion in its filing.Pandemic ShutdownThe turnaround will be complicated by the fact that Neiman’s stores were shut and its workers furloughed to help stop the spread of the Covid-19 outbreak. Some of the stores have been partially reopened with the option for curbside pickup, according to a company statement.Neiman Marcus manages more than 40 namesake stores across the U.S., two Bergdorf Goodman stores in Manhattan, about two dozen Last Call locations and a Mytheresa in Germany. The latter is a brick-and-mortar version of its fast-growing Mytheresa online merchant.Most of the company’s department store rivals also suspended operations because of the virus, at a time when the whole industry was already ground down by years of shopper defections to online merchants.Neiman has been trying to simultaneously spend more on luring customers while taming its debt load, with mixed success. The company reached a deal with creditors last year that put off the due dates on some of its debt to buy time for a turnaround.It also shuffled Mytheresa to a place in its capital structure that put the business beyond the reach of creditors, creating hard feelings with some bondholders that still linger. Mytheresa isn’t part of the Chapter 11 process and will operate independently, the company said.Pre-Pandemic StatusVan Raemdonck, Neiman’s CEO, said in the statement the company was making progress on its turnaround before the coronavirus hit. “However, like most businesses today, we are facing unprecedented disruption caused by the Covid-19 pandemic, which has placed inexorable pressure on our business,” he said.Neiman’s unsecured creditors list is a who’s-who of luxury brands including Chanel, Gucci, Christian Louboutin and Burberry, according to court documents. Neiman owes between $3 million and $8 million to some brands, records show.The bankruptcy will give Neiman much-needed relief on payments to vendors, suppliers and landlords. Other retailers have sought similar protection from creditors, including J. Crew Group Inc. which filed Chapter 11 earlier this week.Both Neiman and J. Crew have struggled for years under the weight of heavy debt loads from leveraged buyouts, all while customers were defecting to online channels and specialized rivals. Then came the virus.Final Straw“Retail chains that were already in trouble before social distancing was even a phrase have been pushed over the edge by the pandemic,” said Steven Wilamowsky, a partner in law firm Schiff Hardin’s restructuring practice. “Now, although rehabilitation rather than liquidation remains the stated goal, it appears that will be more challenging in the current retail environment.”Neiman said it extended its closures of some stores until at least May 31, with customers still able to shop through its website and mobile app. In addition to the curbside service at some locations, the Atlanta and NorthPark Neiman Marcus stores are available by private appointment.Neiman is better positioned than most U.S. department stores with a loyal customer base, distinct luxury space, and digital presence, said Neil Saunders, managing director of GlobalData Retail. “There is a place for Neiman Marcus in the post-coronavirus world,” he said. “Once the debt has been eliminated, or at least reduced, there are reasonable prospects for survival.”Neiman’s FutureThe debt overhaul won’t solve Neiman’s secular problems, with luxury brands selling direct to consumers and sales continuing to migrate online. “It will take a lot of creativity and imagination” to get through the restructuring, Saunders said.Neiman told the court it has support from holders of 77% of its extended term loans, over 99% of the second liens, and more than 69% of the third lien notes to equitize their debt and backstop the bankruptcy loan and exit financing.Guiding the process are lawyers from Kirkland & Ellis and investment bankers at Lazard Ltd. The Berkeley Research Group is providing financial advice.Neiman’s term loan holders are represented by Wachtell, Lipton, Rosen & Katz as legal counsel and Ducera Partners as investment bank. Certain noteholders are working with law firm Paul, Weiss, Rifkind, Wharton & Garrison and investment bank Houlihan Lokey Inc.The case is Neiman Marcus Group LLC, 20-32519, Southern District of Texas (Houston).(Updates with analyst’s comment, filing information and store status, starting in the 13th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Coronavirus Will Change Not Just How, But What, We Buy
    Bloomberg

    Coronavirus Will Change Not Just How, But What, We Buy

    (Bloomberg Opinion) -- As the coronavirus pandemic continues, Bloomberg Opinion will be running a series of features by our columnists that consider the long-term consequences of the crisis. This column is part of a package envisioning a new consumer economy. For more, see Mary Duenwald on technology changing how we shop and on how consumers respond to crises, and Tara Lachapelle on fixing the broken business model of streaming.During the coronavirus lockdown, a particular meme has been doing the rounds on Instagram and Twitter.It shows a woman in a pink ballgown, complete with tulle train billowing out behind her. She’s not reaching for a cocktail or standing on a glitzy red carpet. She is in a supermarket produce section, clutching a bunch of carrots in one hand and reaching for a red pepper with the other.The image encapsulates how some consumers feel: After being cooped up at home for months, they can’t wait to finally have an opportunity to get all dressed up again.But for many others, what they wear, how they shop and which products they buy will be forever altered by the pandemic. The Covid-19 outbreak, which has tragically infected more than three million people and killed more than 219,000, has also struck at the heart of consumerism around the world.With a quarter of a million stores closed across the U.S. at the height of the lockdown, according to research group GlobalData, the ability to purchase, long a symbol of affluence and status, is in peril. Never has materialism seemed so emasculated.First of all, there’s the immediate economic impact. With millions of workers temporarily furloughed and laid off, they will be reining in their spending. If these become permanent job losses, the effect will be even more severe. Conspicuous consumption is going to look ugly for a while.And habits learned in lean times often stick around. Witness the acceptance of discount retailers, such as the German no-frills supermarkets Aldi and Lidl. The cash-strapped middle classes in the U.S. and Europe discovered the delights of their cheap wine and value toilet paper during the 2007-2008 global financial crisis, and the budget grocers have prospered ever since.Then there’s the slow and incremental process of coming out of lockdown. Even individuals who have kept their jobs and full salaries may make longer-term changes to their spending, as it will be some time before they feel comfortable visiting crowded malls and dining out in restaurants again.With social distancing potentially staying in place for up to two years, according to KPMG, this could mean far-reaching consequences for the operation and physical design of stores. For example, stores might have to require appointments for visits, offer more check-out free locations and even rethink facilities such as changing rooms. Who wants to pick up discarded garments when the world is emerging from a pandemic?So far, there are some encouraging signs coming from China, where consumers emerging from lockdown seem to be embracing shopping once more. PwC estimates that as of early April sales at non-food retailers were at 50-80% of their pre-crisis levels. In luxury, the recovery has been even more extreme: A Hermes International flagship store took in $2.7 million when it reopened in Guangzhou in mid-April, believed to be a record daily haul for a boutique in China, according to fashion trade bible WWD. LVMH said some of its big brands on the mainland had seen 50% increases in sales in April compared to the previous year.This phenomenon is being called “revenge spending,” a phrase first coined to capture the desire for consumer goods unleashed in China during the 1980s, after the poverty and chaos of the Cultural Revolution. At the moment, Chinese shoppers are flush with cash after cancelled travel and events. However, this demand may not last, especially as the number of people allowed in boutiques at any one time is limited and initiatives such as temperature testing have been put in place.The bigger impact of this crisis, then, may be a shift in what consumers choose to buy.*****The outbreak has hit something we largely take for granted: our health. While more government resources are directed to healthcare — something that will have implications for taxes and disposable incomes — there will also likely be a reassessment of personal priorities. That could mean spending even more of one’s income on private health insurance or buying products that help boost immunity.Wellness had already become one of the few rich seams for consumer groups, giving rise to Beyond Meat Inc.’s plant protein burgers, South Korean gold-laced face masks and vitamin infusions sold in upmarket department stores. Despite criticisms that so-called self-care is the expensive preserve of millennial hipsters, society’s desire to ensure it doesn’t get sick will likely turbo-charge demand for these products.The pandemic has also fostered a renewed sense of community. This plus the inability to travel very far could encourage spending in more local shops and on brands with strong regional identities, as opposed to the big retailers who may have had empty shelves or struggled to deliver online orders during the crisis. Underlining the new mood, one British retailer with a long history of trading on the high street told me they’ve even noticed more customers saying thank you to staff in their daily interactions.  One sector that is poised to suffer tremendously going forward is clothing. Most consumers have effectively skipped a fashion season, being unwilling or unable to buy apparel for spring and summer. Conferences, parties and weddings have been cancelled, so we’ve simply needed fewer new clothes. There may be some pent-up demand when consumers rediscover their freedom, especially if retailers are having to cut prices to clear stock. But for many, essential grooming such as getting a haircut or a fresh set of eyelash extensions will take precedence over buying a new outfit.Some consumers who bought fewer clothes during this period may continue to reduce their wardrobe spend. The size of the average U.S. closet has already shrunk over the past three years, according to GlobalData. If you combine the pandemic and concerns about fashion’s environmental cost, it’s not hard to see how men and women may buy even less apparel in the future.During the prolonged shutdown, there will be some retailers that consumers simply don’t miss and therefore may not return to. U.S. department stores, such as Macy’s Inc. and J.C. Penney, already grappling with the shift toward online buying and with few compelling products, may well fall into this category. J.C. Penney skipped a $12 million interest payment and is evaluating alternatives including a potential bankruptcy filing to restructure its finances, Reuters reported recently. Macy’s, meanwhile, is exploring ways to use its real estate to secure fresh cash. Indeed, some storied names may shut their doors forever, or decide that the time is right to close a number of locations.  How brands behave when the chips are down will also determine how customers react to them when they come out of lockdown.Some have acted particularly well, adapting their offerings to meet changing needs. For example, luxury goods groups, including LVMH, Kering SA, Prada SpA, Burberry Group Plc and Ralph Lauren Corp, repurposed their facilities to produce protective equipment such as hand sanitizer, masks and gowns. Brands like Nike and Lululemon have engaged shoppers with online workouts; while British clothing and food retailer Marks & Spencer Group Plc. has offered meditation sessions. This nimbleness won’t be forgotten.*****Whether out of necessity or choice, shoppers will want goods that are appealing — and, after a health scare, make them feel good — but are priced at a level they believe is appropriate. This doesn’t always mean the cheapest, but it does mean a perceived sense of good value for money. That’s at odds with the approach of higher initial prices followed by steep markdowns that has become a hallmark of much U.S. retail. But as customers become more discerning, store groups will need to distinguish themselves with more than just discounts.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Why I think £5k invested in this top stock could make you £10k in 10 years
    Fool.co.uk

    Why I think £5k invested in this top stock could make you £10k in 10 years

    This Fool highlights a high-quality FTSE 100 top stock that could produce huge returns for its shareholders over the next decade.The post Why I think £5k invested in this top stock could make you £10k in 10 years appeared first on The Motley Fool UK.

  • Here's Why Burberry Group (LON:BRBY) Can Manage Its Debt Responsibly
    Simply Wall St.

    Here's Why Burberry Group (LON:BRBY) Can Manage Its Debt Responsibly

    Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

  • What to watch: Burberry donates 100,000 pieces of PPE, Sports Direct resolves tax dispute, and stocks fall
    Yahoo Finance UK

    What to watch: Burberry donates 100,000 pieces of PPE, Sports Direct resolves tax dispute, and stocks fall

    A daily overview of the top business, market, and economic stories to watch in the UK, Europe, and abroad.

  • Burberry will not take British state crisis cash to pay staff
    Reuters

    Burberry will not take British state crisis cash to pay staff

    Luxury brand Burberry will pay all its staff globally even if they are unable to work due to coronavirus crisis store or site closures, adding on Friday it will not tap a government support scheme in Britain. With Britain in a pandemic lockdown many retailers, including Marks & Spencer, Next and Philip Green's Arcadia group, have taken advantage of the state job retention scheme, which sees employees paid 80% of their salary. The 164-year-old Burberry, which warned last month its fourth quarter sales would fall 30%, said it was continuing to reduce spending on non-essential areas.

  • 3 bargain FTSE 100 shares I’d snap up to retire early
    Fool.co.uk

    3 bargain FTSE 100 shares I’d snap up to retire early

    If you want to retire early, owning these market-beating FTSE 100 shares should make it much easier, says Roland Head.The post 3 bargain FTSE 100 shares I'd snap up to retire early appeared first on The Motley Fool UK.

  • When Should You Buy Burberry Group plc (LON:BRBY)?
    Simply Wall St.

    When Should You Buy Burberry Group plc (LON:BRBY)?

    Burberry Group plc (LON:BRBY), which is in the luxury business, and is based in United Kingdom, received a lot of...

  • 'More Burberry gowns to come': luxury brand turns effort to coronavirus fight
    Reuters

    'More Burberry gowns to come': luxury brand turns effort to coronavirus fight

    High-end British fashion brand Burberry has turned over its production to make protective gowns for healthcare workers tackling the coronavirus outbreak, health minister Matt Hancock said on Friday. Burberry has said its sales in the final weeks of March would plunge by up to 80% as the impact of coronavirus already seen in China spread to Europe and the United States, causing stores to close and luxury shopping to dry up. Asked during a news conference about supplies of personal protective equipment, something many healthcare workers have complained there is not enough of, Hancock said Burberry had turned over its production to make gowns.

  • Reuters - UK Focus

    "More Burberry gowns to come": luxury brand turns effort to coronavirus fight

    High-end British fashion brand Burberry has turned over its production to make protective gowns for healthcare workers tackling the coronavirus outbreak, health minister Matt Hancock said on Friday. Burberry has said its sales in the final weeks of March would plunge by up to 80% as the impact of coronavirus already seen in China spread to Europe and the United States, causing stores to close and luxury shopping to dry up. Asked during a news conference about supplies of personal protective equipment, something many healthcare workers have complained there is not enough of, Hancock said Burberry had turned over its production to make gowns.

  • Retailers Start Usefully Quantifying Virus Impact
    Bloomberg

    Retailers Start Usefully Quantifying Virus Impact

    (Bloomberg Opinion) -- As measures to curb the coronavirus heap pressure on the global retail sector, observers have struggled to quantify the economic ramifications. There are signs that affected companies are offering some useful disclosure that may in turn help sentiment. Adidas AG last week outlined a roughly $1 billion reduction in first quarter sales and $500 million impact on operating profit, but that was before many countries outside Asia started taking aggressive steps in response to the crisis.Now Next Plc has provided more expansive detail about how it sees the months ahead. With shares in most retailers in freefall – Next is down about 40% this year – investors needed to hear something constructive. While the U.K. fashion chain said it could not give guidance for the full year, it has produced a stress test that outlines potential outcomes.In a worst-case scenario, full-price sales would be down by about 1 billion pounds ($1.16 billion), a quarter of its total, which would mean pre-tax profits of just 55 million pounds for the financial year (against 729 million pounds in the year earlier).The company has also set out how it might cope with the crisis financially, given the possibility of extended store closures. It could suspend buy-backs and dividends, delay capital expenditure, sell and lease a warehouse and partly securitize customer debts. Pulling these levers could provide an extra 835 million of cash. Bringing forward its forthcoming sale, and pushing back deliveries of stock would free up another 100 million pounds.These projections exclude any use of government lending or measures to help pay wages, and Next is conservatively assuming no rent reductions from landlords.This disclosure dashboard sets a good example for others to follow. But Next can afford to be upfront with its investors. It is one of the strongest retailers in the U.K. sector.Similarly, Burberry Group Plc provided some near-term clarity, warning that fourth-quarter comparable sales in its stores would be down by 30%, with a 70-80% decline in the final weeks through to its March 31 financial year-end. Like Next, the luxury group has a strong balance sheet, with the company forecasting a cash balance of 600 million pounds before lease obligations.It is understandable why weaker chains may be less willing to quantify the impact on their businesses. But their investors will expect a similar assessment of possible scenarios. And larger, well-resourced chains have no such excuse for not saying more.Take Inditex SA, the world’s biggest clothing retailer. It said the outbreak had cut its sales by 24% between March 1 and March 16. But it didn’t outline the potential full-year impact. This is from a company with record net cash of 8.1 billion euros ($8.7 billion) at January 31.There will be many more tough announcements over coming weeks as retailers and restaurants outline the financial cost of what is happening now. But even if they can’t make exact predictions, they should learn from Next’s example and aim to at least give the market a toolkit for understanding the resilience of their business. Next shares’ strong gain in a falling market on Thursday suggests transparency is rewarded.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Burberry sales fall almost 50% as Covid-19 spreads beyond Asia
    Yahoo Finance UK

    Burberry sales fall almost 50% as Covid-19 spreads beyond Asia

    The British luxury brand said 40% of its shops around the world were now shut and it expects more closures in the coming days and weeks.

  • Reuters - UK Focus

    FTSE 100 gains on weaker pound, jump in BAT shares

    The FTSE 100 edged higher in a choppy start on Thursday, supported by a jump in the shares of tobacco company BAT and a weaker pound as London braced for a virtual shutdown due to the spread of the novel coronavirus. The internationally focussed FTSE 100 rose 0.7% by 0827 GMT, as exporters benefitted from a plunge in sterling to its lowest level since March 1985. British American Tobacco climbed 3.7% after it said the outbreak has not had any material impact, while shares of other blue-chip companies including Diageo, BP and Unilever rose more than 3%.

  • What Is Burberry Group's (LON:BRBY) P/E Ratio After Its Share Price Tanked?
    Simply Wall St.

    What Is Burberry Group's (LON:BRBY) P/E Ratio After Its Share Price Tanked?

    Unfortunately for some shareholders, the Burberry Group (LON:BRBY) share price has dived 34% in the last thirty days...

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