Burberry’s 4Q sales better than expected – Watch 1446p

Burberry, the luxury fashion house, posted 4Q retail like-for-like sales down 27%, slighter better than the 30% drop expected by the Company, showing encouraging signs.

Trader 1

Burberry, the luxury fashion house, posted 4Q retail like-for-like sales down 27%, slighter better than the 30% drop expected by the Company, showing encouraging signs. 


The company said: “we are not in a position to provide specific guidance for FY 2021 at this stage as it is currently challenging to predict the course of the pandemic and the longer lasting economic consequences. However, we currently have 50% of our store network closed and we expect our first quarter (to end June 2020) to be severely impacted with store closures likely to be at or near peak for most of the quarter."

Given current uncertainty, final dividend has not been declared. 

From a chartist’s point of view, the bullish engulfing pattern formed in March on a weekly chart is a sign of hope. Prices need to stand above 1209p to maintain the bullish bias.

A break above 1446p would deliver a bullish signal (buy stop) and would call for a short term rebound towards the 20WMA and horizontal resistance at 1640p. 

Alternatively, a push below 1209p would reinstate a bearish bias and would open a path to further decline towards 1017p.

Source: GAIN Capital, TradingView


Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.