US stocks on down note, Burberry shines in London

Stronger than expected third-quarter profits and sales

at Macy’s Inc. boosted US retail stocks to an all-time high Wednesday. On the downside, Perry Ellis International Inc., which stock fell 23 percent to 15 dollars soon after the firm reduced substantially its full-year guidance. The company now expects a loss in the third quarter due to poor performance at its mid-tier retailers and own stores.

Hugo Boss was up 1 percent to 97.58 euros, becoming the exception of the luxury stocks in Europe, which put on a poor performance. In contrast, Ferragamo was down 3 percent to 24.39 euros; Safilo Group lost 2.7 percent to 14.04 euros; Mulberry Group shredded 2 percent to 10.30 pounds and Compagnie Financière Richemont closed on a down note, 2.3 percent below the previous day close.

Still within the luxury niche, Burberry reported a “solid performance in the half-year to end-September,” with total revenue up 17 percent at 1.031 billion pounds, well ahead the previous year´s comparable period. Adjusted profit before tax was 174 million pounds, compared to last year´s 173 million and above original guidance.

The group had net cash of 208 million at period end and issued, below the previous year´s 237 million pounds.

Interim dividend is up 10 percent to 8.8 pence, advanced the company. Angela Ahrendts, CEO, commented: "We are proud to announce a first half performance that saw Burberry's revenue exceed 1 billion pounds for the first time, reflecting the continuing strength of our global brand momentum.”

On the coming months, the CEO said that “We remain focused on executing our retail, digital and marketing strategies in the all-important third quarter and in what remains an uncertain macro environment. The senior team continues to balance brand appropriate revenue growth, selective investment and infrastructure efficiencies to drive sustainable profit growth across the portfolio, especially with the significant long-term potential of our fifth product division, beauty."