BURBY - Burberry beats earnings estimates China lockdowns loom over forecasts

Burberry Group (OTCPK:BURBY) posted a sweet-smelling earnings result on Wednesday, but challenges in China still loom large. Shares of the luxury fashion retailer gained in London after reporting a jump in revenue to £2.8 billion for the April-ended fiscal year, up from £2.3bn in the prior year. Operating profits also pushed higher, growing to £543 million from £521 million in 2021. Especially important, the brand’s status as a purveyor of Veblen goods allowed it to widen operating margin to 18.5% from 16.9% in 2021 by raising prices and increasing demand.  Due to strong demand, the group reaffirmed its full-year guidance for the new fiscal year and announced its plan to open more locations after establishing 38 new stores in the past year. 47 stores are now set for redesign as well, including flagship locations like its location in Paris Rue Saint Honore. To be sure, the company was quite cautious

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Burberry beats earnings estimates, China lockdowns loom over forecasts