The company reported remarkable numbers today, Burberry still needs to address the growth equation because its competitors like Gucci and LVMH are far ahead of the game
Burberry has proven one thing that hiring the right person for the right job matters a lot. The company reported smashing numbers today and its half-year adjusted profit was £173m, a number which was ahead of consensus number of £169m. Designer Ricardo, is the hope for the company and his collection has received exceptional response despite the fact that most products won't reach stores until February. The company styled ad campaign resonated with its lovers.
This was something which the firm was lacking. What Burberry has realised that it needs to create FOMO among its customers and have more limited lines is the way forward. Communication and delivering a product which the users like is the key to the fashion industry because the competition is as fierce as it can be. In order to create the buzz and keep it going, it needs to be more active on social platforms like Instagram. Burberry still needs to address the growth equation because its competitors like Gucci and LVMH are far ahead of the game. In other words, their growth is nearly in double-digit and Burberry has a lot to catch up.
In terms of technical analysis patterns, the price has formed two bearish Harmi candles and the patterns played out perfectly.
The price is trading above the 200,100 & 50-day moving average, this confirms that the price is bullish.
The RSI is also positive and this further strengthens the above argument'