Burberry, Patisserie Holdings and SABMiller
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“The FTSE 100 tracked falls on Wall Street, which was down on rising US consumer prices and increased concerns over a June interest rate hike, and on Asian markets with traders also awaiting the latest UK unemployment and wages data due mid-morning,” says AJ Bell Investment Director Russ Mould.
“Iconic fashion group Burberry disappointed with figures which underscored the problems in the luxury market. Burberry has lost a lot of its allure for investors recently and it is now pinning its hopes on a three-year plan to drive revenue and cut costs in a bid to keep it one step ahead of its rivals.
“The luxury market has been driven by demand from Chinese consumers and Burberry has been a major beneficiary. But with China’s growth slowing, Burberry is facing a challenging environment for some time to come.
“Patisserie Holdings continues to enjoy the sweet life with double-digit revenue and earnings growth in the first half. The group opened 12 new stores in the six months to the end of March. All are doing well and it has more planned. Investors were heartened by the group’s confidence that its overall cost base will remain stable to the year-end despite pressure from the National Living Wage in the second half.
“Brewing behemoth SABMiller’s pre-tax profits fell after the group took a hit of $572m after scaling back its operations in Angola and South Sudan. The strengthening dollar against its operating currencies also had a material negative impact on results.”
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