UK share prices watch: Burberry shines
Luxury goods retailer Burberry (LON:BRBY) has expectedly been among today’s UK share prices to watch as it updated investors on its first-quarter performance. Credit checking company Experian (LON:EXPN), however, is suffering on the back of its own trading update.
Burberry rallies, Experian slides
Shares in Burberry have been in demand in London this Tuesday as the luxury goods retailer posted a rise in sales in the first quarter of its financial year. The company further said that it had increased the availability of products by its new chief designer Riccardo Tisci, and that the consumer response had been ‘very promising’. Investors are also cheering a pick-up in sales in Mainland China during the reported period.
“If the market was waiting for signs of an immediate improvement in Burberry’s fortunes, it will not be disappointed as Burberry has delivered an update which is much better than expected – and on a number of fronts,” Interactive Investor’s Richard Hunter commented, as quoted by Proactive Investors. Reuters meanwhile quoted Markets.com analyst Neil Wilson as commenting that the big question facing the FTSE 100 group had been “to what extent the Chinese consumer is reining in their luxury buying … Not so much, it seems”. Burberry’s share price has added more than 13 percent in early afternoon trade, as compared with about a 0.2-percent gain in the Footsie.
CRH (LON:CRH) is another blue-chip outperforming the broader market, with investors reacting positively to news that the building materials group has inked a deal to divest of its Europe Distribution business to private equity funds managed by Blackstone for an enterprise value of €1.64 billion payable in cash. The move follows a comprehensive strategic review of the business over the last several months. CRH’s share price is up by more than two percent intraday.
By contrast, Experian’s shares have been sold off as the FTSE 100 company revealed that its revenue growth had slowed down in the first quarter of its financial year. The credit checker, however, said that its guidance remained unchanged.
“We expect Experian to continue to deliver good organic growth with strong cash generation reflecting stable margin performance – leveraging growing demand for its data capability across geographic regions and vertical segments,” Shore Capital commented, as quoted by Proactive Investors. Experian’s shares are down by nearly two percent.
London-listed airlines have also been among today’s UK share prices to watch as low-cost carrier Ryanair (LON:RYA) cautioned that as a result of the current uncertainty over the Boeing 737 MAX deliveries, it was cutting its 2020 growth rate from seven percent to three percent.
Shares in the budget Irish airline, however, are up by 3.5 percent, while low-cost peers easyJet (LON:EZJ) and Wizz Air (LON:WIZZ) are up by 4.6 percent and 2.5 percent, respectively. British Airways and Iberia parent International Consolidated Airlines Group (LON:IAG) has added about three percent.
“It’s just that reduced capacity is what is required for the industry – improved pricing environment which should be supportive of margins,” Markets.com’s Wilson commented, as quoted by Reuters.
AG Barr (LON:BAG) has lost nearly a quarter of its value this Tuesday as the maker of Irn-Bru issued a profit warning, noting that its trading in the financial year had been below its expectations.
“This has been exacerbated by some specific brand challenges, particularly in Rockstar energy and Rubicon juice drinks, as well as disappointing spring and early summer weather,” the company pointed out, adding that despite its “strong second half plan it is not expected that we will recover fully from the volume impact in the first five months of this year and the current trading we are experiencing. As a result, we expect our profit performance for the full year to decline versus the prior year by up to 20 percent”.
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UK share prices to watch tomorrow
Tomorrow’s UK share prices to watch include Sydney- and London-listed miner BHP Billiton (LON:BLT) which is scheduled to post its operational review for the year ended June 30, ahead of its full-year results next month. Other London-listed companies reporting tomorrow include Severn Trent (LON:SVT), TalkTalk (LON:TALK), Galliford Try (LON:GFRD) and Premier Oil (LON:PMO).
Today’s top FTSE 100 riser Burberry will stay in focus tomorrow as it holds its annual general meeting in the wake of today’s update.
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