Burberry share price rises 15% after today’s results – is there more to come?

This page The envelope (LSE: Brby) share price has been going through hell in recent years. Now it’s back with a vengeance.

The results of this result tomorrow morning (24 January) Q3, including the important Christmas trading period, wondering how investors will respond.

Will they be able to fly 7% in the year down with the funds returned to £659m? Or view that as progress following 22% sales in half?

Comparable store sales fell 4% in Q3, compared to a 20% decline in the first quarter. That’s progress of sorts but it’s still falling.

Will the FTSE 250 stock continue its recovery?

I also wondered if the markets would swallow CEO Joshua Schulman’s claim today that his strategic plan “We will improve our performance and drive to create long-term value.

In the last batch of results, published on November 14, investors swore behind the new sweep. Burberry shares jumped 17% as Schulman unveiled its ‘Burberry Forward’ plan by targeting £40m in savings and “Reconnecting our brand to its original purpose”.

The more I looked at today’s report, the more hopeful I felt. Especially with schulman saying that “Now it’s possible that our second half of the results will be adjusted more with the adjusted functional loss”.

In November, Burberry said it is too early to tell you that the second half can completely remove half of the first half? So that’s progress too. I was thinking of another jump in the stock and boy, we got it.

As I write, it is 15% and I am a Happy Chap because Burberry was my biggest loser last year, leaving me with a paper loss of 40% by one point. That’s despite buying shares after the start of several profit warnings, and discounting each piece of bad news.

The rally started in November and the shares are now up 50% in the last three months. Although it is still down about 14% over one year (and 55% over two).

As well as celebrating the recovery, I’m kicking myself for not buying more when Burberry was down. Although I have learned that it is almost impossible to call the bottom of the market, or individual stocks.

This growth stock is back in play

So today, I’ll take the win and look forward to a bright 2025. I already have a big stake in Burberry, so I won’t buy much. I can see why some investors would consider doing so. But I would take my time, personally, and watch out for procation takers. Stocks have a tendency to bounce back after big early morning hits like this one. Also, the stock is not as cheap as it used to be, trading at 14.5 times.

And with the global economy continuing to struggle, we can’t imagine that consumers have their tastes back. China is a particular concern as its economy resists efforts to move it further.

The US is in very good shape, but we have Donald Trump’s trade indicators to worry about. Burberry will be right in the firing line, we have to find them.

Again, the markets put a lot of faith in Shulman’s words, but as he admits, “It’s too early in our evolution and too much to do”. Enough of that. Let’s enjoy today. Burberry is back on track and these things are contagious. Bring it on!