Burberry shares challenging immediate resistance at 1732p
Burberry, the luxury fashion house, posted 1H adjusted EPS declined 88% on year to 4.6p and adjusted operating profit dropped 75% to 51 million pounds.
Share this:
Burberry, the luxury fashion house, posted 1H adjusted EPS declined 88% on year to 4.6p and adjusted operating profit dropped 75% to 51 million pounds on revenue of 878 million pounds, down 31% (-30% at constant exchange rates). Retail comparable store sales were down 25% on year (1Q: -45%; 2Q: -6%). The company added: "With the brand resonating and attracting new and younger consumers, we have taken the decision to reduce markdowns and this will be a revenue headwind in H2 FY2021 with the main impact in Q3 FY2021 but will serve the long term interest of the brand."
From a chartist’s point of view, the stock price escaped from a symmetrical triangle pattern (bullish event) and is now nearing the upper Bollinger band and the former high at 1732p (June 5 2020). The weekly RSI (14) has pushed above its declining trend line. A price pullback to the trend line support near 1530p could be seen as a buying opportunity with targets at 1872p and 2085p. Alternatively, a break below 1463p would invalidate the bullish view and would call for a reversal down trend towards 1317p and 1017p.
Source: GAIN Capital, TradingView
Burberry, the luxury fashion house, posted 1H adjusted EPS declined 88% on year to 4.6p and adjusted operating profit dropped 75% to 51 million pounds on revenue of 878 million pounds, down 31% (-30% at constant exchange rates). Retail comparable store sales were down 25% on year (1Q: -45%; 2Q: -6%). The company added: "With the brand resonating and attracting new and younger consumers, we have taken the decision to reduce markdowns and this will be a revenue headwind in H2 FY2021 with the main impact in Q3 FY2021 but will serve the long term interest of the brand."
From a chartist’s point of view, the stock price escaped from a symmetrical triangle pattern (bullish event) and is now nearing the upper Bollinger band and the former high at 1732p (June 5 2020). The weekly RSI (14) has pushed above its declining trend line. A price pullback to the trend line support near 1530p could be seen as a buying opportunity with targets at 1872p and 2085p. Alternatively, a break below 1463p would invalidate the bullish view and would call for a reversal down trend towards 1317p and 1017p.
Source: GAIN Capital, TradingView
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
S&P 500, Nasdaq, Dow Forecast: Rising Yields Test Rally Ahead of Nvidia, Fed 8 22 2026
S&P 500, Nasdaq and Dow test key technical levels as momentum fades, raising the risk of a deeper correction heading into a pivotal week.
Magnificent Seven Earnings Preview: Can Big Tech Reclaim AI Leadership?
The Magnificent Seven enter earnings with far more divided performance than in previous years, as investors increasingly distinguish between companies supplying the AI buildout and those funding it - what does that mean heading into earnings season?
EUR/USD, FTSE 100 Forecast: Two trades to watch 1507
EUR/USD rises after weaker US CPI, PPI up next. FTSE 100 falls as weak China GDP data hits miners.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.