Burberry sells more but shares fall

Wednesday, 18 April 2012

Burberry announced on Tuesday it six months trading results to 31 March 2012. The company saw total revenue of £1,027m ($1630 million or Rs 8,372 crores), up 18% from last year and retail revenue up 23% to £743m ($1.18 billion or Rs 6,061 crores). The quintessentially British fashion house's store sales saw 12% growth, with the UK, France and China the most profitable. Besides, Burberry's wholesale business grew 7% to £230m ($366 million or Rs 1,880 crores), with outerwear and leather goods proving popular categories. Its shares fell by nearly 6% by the market close Tuesday as investors were dragged down by the slowdown.

Meanwhile, The Zacks Consensus Estimates for Target Corporation (NYSE:TGT) have been portraying an upward trend as the analysts covering the stock have become more constructive after the company posted better-than-expected March sales results and raised its first-quarter 2012 earnings projection, analysts at Zacks Investment research advanced in a note to investors. “The Zacks Consensus Estimate for the first quarter of 2012 jumped 4 cents to $1.00 (Rs 51) in the last 30 days. The Zacks Consensus Estimate for the second quarter remained constant at 98 cents (Rs 50) in the last 30 days, as the revisions made by the analysts had a neutral impact on it. For fiscal 2012, the Zacks Consensus Estimate rose 4 cents to $4.25 (Rs 218) in the last 30 days. For fiscal 2013, the Consensus Estimate increased by a couple of cents to $4.82 (Rs 247.5).”

Finally, market is quite expectant about Luluelemon Athletica, which stock is trading near its 52-week high of roughly $75 (Rs 3,852), and some think it still has a long way to go. Michelle Tan of Goldman Sachs gave a six-month price target of $85 (Rs 4,366), while UBS's Roxanne Meyer gave a 12-month target of $91 (Rs 4,674), as published by MSNBC.

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