Thursday, 14th November: Burberry were amongst the few high-flyers on the blue-chip index today following their interim update, which was better than expected and demonstrated the success of new designer Riccardo Tisci’s brand transformation. Tisci revamped the Burberry logo and the brand has also started focusing on other products to shift the focus away from their iconic outerwear.
One of the concerns they highlighted was the Hong Kong protests which will likely continue to dampen their performance in the full year results. Protests aside, the interim update revealed an 11.0% increase in pre-tax profit, which was forecast to be flat, and a 5.0% increase in revenue which was slightly higher than forecasts.
The luxury-goods efforts however were not enough to offset the damaged caused to the FTSE 100 by ex-dividend mark-downs which impacted the likes of Sainsbury, Royal Dutch Shell, GlaxoSmithKline and Bunzl, as the index opened 0.15% lower.
At the opposite end of the index having a more difficult day on their own interim update was 3i. The market was not as kind to welcome an update from the private equity company who seemed less optimistic about their full-year results due to caution surrounding new investment opportunities.
At the end of the day the FTSE 100 closed 0.8% lower at 7292 which reverses all the progress made so far in November and puts them back to where they were at the beginning of the month.