Russ Mould, investment director at AJ Bell, said: “Burberry looked primed to strut its stuff based on one of its best quarters in years, but a cautious outlook and weak showing in certain markets saw the shares trip up on Friday.
“Burberry has moved away from the really high end of luxury to focus on the mid-tier, emphasising the brand’s British roots and concentrating on items where it has heritage appeal like scarves and trench coats.
“Encouragingly, this shift under CEO Joshua Schulman saw the company post growth across every product category in the quarter.
“This growth is largely supported by the Americas and China, with the Middle East and Europe struggling thanks to the impact of the Iran conflict and reduced tourist spending.
“Much as he did alongside the full-year results in May, Schulman dialled up the caution in the tone he adopted on the outlook. While this conservatism might make sense, it’s clear Burberry shareholders would like a bit more to get excited about after years of disappointment.”
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