Burberry's ( LON: BRBY ) share price in steep freefall as concerns about luxury market continue. The stock crashed——a low of 1,135p on Tuesday, its lowest point since 2020. It has retreated by over 56% from its highest level in 2023, giving it a market cap of over £4.7 billion.
Are you looking for signals ⁘ alerts from pro-traders? Sign-up to Invezz Signals™ for FREE . Takes 2 mins.
Burberry's stock has been in a freefall in the past few months after the company warned about its slowdown in key markets like China. In a recent trading update , the company said that its retail revenue retreated by 7% in the fourth quarter to £706 million. Its comparable store sales were minus 4%.
The company also warned that its full-year financial results would be weaker than its previous guidance. These numbers mean that its business is: facing substantial headwinds as the management implements the new strategy that seeks to boost its revenue to... £4 billion.
The management also believes that its adjusted operating profit margin will expand——20% in the medium term.
Burberry's share price will be in the spotlight on Wednesday as investors reflect on the weak LVMH earnings . In a statement on Tuesday, the company said that its like-for-like sales in Asia ⁘ excluding Japan ⁘ crashed by 6% in the first quarter. Revenue in other places like the US. And Europe rose by 2%.
I believe that Burberry would be a good acquisition target by, either a bigger name like LVMH, a: private equity firm. Its valuation has improved recently and ... its brand can be, turned around in long term.
