Bulletin
Investor Alert

London Markets Archives | Email alerts

Jan. 19, 2022, 8:55 a.m. EST

Burberry shares surge in London as inflation jumps to a 30-year high

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Burberry Group PLC (BRBY)
  • X
    Pearson PLC (PSON)
  • X
    International Consolidated Airlines Group S.A. (IAG)

or Cancel Already have a watchlist? Log In

By Steve Goldstein

Burberry shares rallied Wednesday, as the luxury-goods maker reported steady comparable-store sales in its fiscal second quarter.

Burberry /zigman2/quotes/205386705/delayed UK:BRBY +0.91% shares rose 6% after it said it expects its adjusted operating profit to grow 35% at constant exchange rates, which analysts at Bank of America say implies earnings before interest tax of £508 million, or 7% above consensus expectations. The analysts say at 17 times fiscal 2023 earnings, the stock is inexpensive relative to both its history and peers, and increased evidence over a brand turnaround could be a catalyst for a rerating.

Pearson /zigman2/quotes/204954587/delayed UK:PSON -0.75% shares jumped 6% after the education publisher said fiscal year adjusted operating profit will be about £385 million, compared to expectations of £375 million. In the fourth quarter, underlying sales growth was 1%, or 2% when the businesses up for strategic review are excluded. Analysts at Citi called it a “balanced” performance that will help the stock given the cautious positioning ahead of results.

On the downside, International Airlines Group /zigman2/quotes/208070069/delayed UK:IAG -0.19% fell 3% as British Airways cancelled some of its flights to the U.S. over 5G concerns.

The broader FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.27% rebounded 0.6% to 7609.12, and now is up 3% for the year.

Investors took in stride the news that inflation in the U.K. jumped to a 30-year peak of 5.4% . George Buckley, an economist at Nomura, expects the Bank of England to make a quarter-point rate hike in February, after its first hike in December. “The Bank of England had expected CPI inflation to be 4.5% in December, so today’s print represents another material upside miss relative to the central bank’s view,” he said.

The yield on the 2-year gilt /zigman2/quotes/211347169/realtime BX:TMBMKGB-02Y 0.00% rose 4 basis points to 0.91%.

/zigman2/quotes/205386705/delayed
UK : U.K.: London
2,113.00 p
+19.00 +0.91%
Volume: 1.44M
Nov. 25, 2022 4:35p
P/E Ratio
19.03
Dividend Yield
2.46%
Market Cap
£8.15 billion
Rev. per Employee
£307,974
loading...
/zigman2/quotes/204954587/delayed
UK : U.K.: London
979.00 p
-7.40 -0.75%
Volume: 1.10M
Nov. 25, 2022 4:35p
P/E Ratio
27.12
Dividend Yield
2.12%
Market Cap
£7.03 billion
Rev. per Employee
£169,508
loading...
/zigman2/quotes/208070069/delayed
UK : U.K.: London
134.14 p
-0.26 -0.19%
Volume: 8.08M
Nov. 25, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£6.65 billion
Rev. per Employee
£232,926
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,486.67
+20.07 +0.27%
Volume: 445,496
Nov. 25, 2022 4:57p
loading...
/zigman2/quotes/211347169/realtime
add Add to watchlist BX:TMBMKGB-02Y
BX : Tullett Prebon
3.26
0.00 0.00%
Volume: 0.00
Nov. 25, 2022 5:01p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.