Burberry shares out of fashion despite sales rebound

Shares in Burberry sank despite sales jumping by almost a third following strong demand from rich shoppers in Asia and America. The FTSE 100 company said the fourth-quarter rebound in like-for-like store sales came despite 16pc of its shops globally still remaining closed due to lockdowns as it resumed dividend payouts to shareholders. The strong performance helped limit the fall in annual revenues to 11pc, with retail turnover down 9pc. Burberry said its UK stores had “good promise” since reopening on April 12, but were suffering from the lack of spending by tourists. They accounted for two thirds of UK sales before the pandemic. Underlying pre-tax profits fell 12pc to £366m for the year to March 27. Burberry said it expects revenues to continue recovering over the current year, with growth in the “high single” digits, although an ongoing push to reduce discounting will take its toll. It restarted dividends with a 42.5p a share full-year payout, matching 2019 levels. Shares tumbled almost 9pc to £19.18 amid wider London market falls and profit taking following recent gains. However, the stock is considerably higher than their £13.60 value at this point last year.