Sector movers: Burberry sales below plan
Slower than expected growth in retail sales caused fashion retailer Burberry to be punished this morning.
Total revenue increased by 26% but retail sales, which accounted for over 60% of total revenue in the period, increased by 14% on an underlying basis, which the group said was 'modestly' behind its plan.
Comparable store sales grew by 6% in the three months to 31 December 2007, with proportionally more inventory sold during its usual sale period.
Wholesale revenue increased by 74% on an underlying basis. For the second half of the year, it expects wholesale revenue to increase by over 20% on an underlying basis.
"Volume growth overall was high, driven by the strength of our products, and we continued to increase infrastructure costs to support this strong growth," said the group.
Thus is a rare poor performer in an otherwise solid telecommunications sector. The shares give back some of yesterday's gains which were won on the back of the telecoms group's next-generation network receiving accreditation from the OGCbuying.solutions framework agreement.
The four year accreditation will enable the company to compete for a range of voice, data and Internet public sector procurement contracts through the framework agreement, the group said.
"Our extended accreditation as an OGC approved supplier ensures that we are best placed to work with our public sector partners to support their continuing drive to deliver best value services to their customers effectively, efficiently and economically," said head of government & utilities Bruce Cooper.
Top performing sectors so far today
Industrial Metals 7,261.20 +2.46%
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Forestry & Paper 4,281.60 +2.45%
Fixed Line Telecommunications 3,549.80 +0.82%
Aerospace and Defence 3,547.70 +0.58%
Chemicals 4,841.90 +0.46%
Bottom performing sectors so far today
Personal Goods 7,654.50 -7.76%
Food Producers & Processors 4,414.70 -2.62%
General Retailers 1,563.00 -2.32%
Automobiles & Parts 3,889.90 -1.99%
Travel & Leisure 4,823.80 -1.78%
