Burberry share price jumped by 6.50% on Wednesday as investors reacted to the latest earnings from LVMH, the biggest company in the industry. BRBY stock jumped by 6% to 1,235p, up from last month’s low of 1,150p.
Burberry share price jumps after the strong LVMH numbers
The main reason why the Burberry stock price has jumped is that LVMH returned to growth in the third quarter. Its revenue rose by 1% to 18.3 billion euros, snapping two quarters of straight declines.
Most of the growth came from its selective retailing, whose revenue jumped by 7%. Its perfumes and cosmetics, and watches and jewelry revenue rose by 2%. This growth was offset by the decline of in the fashion and leather goods.
These results led to a strong surge among luxury goods companies, with Christine Dior, Moncler, and Hermes rising by 13%, 8%, and 7%, respectively.
The numbers mean that the industry has started to bottom after going through a rough patch in the past few months. The most recent results showed that Burberry sales dropped to £433 million in the first quarter of the year.
Its comparable store sales dropped by 1% in the same period, much better than the 20% drop in the same period last year.
The company also hinted that its business this year will be a bit better. However, the management warned that wholesale revenue would be lower this year, partly because of Donald Trump’s tariffs.
The company’s profitability is expected to improve after it announced major layoffs. It expects that its restructuring charge will be about £50 million, while its estimated cost savings will be about £80 million.
Meanwhile, Burberry’s business is relatively cheaper than its peers because of its slump in the past few years. It trades at 1.8 times 2026 sales, much lower than Kering’s 2.4.
Burberry stock price technical analysis
The weekly timeframe chart shows that the Burberry stock price has bounced back in the past few months. It formed a double-bottom pattern at 600p and a neckline at 1,247p. A double-bottom is one of the most common bullish patterns in technical analysis.
Burberry stock price has now moved to the neckline at 1,247p. It has also moved above the 50-week and 100-week Exponential Moving Averages (EMA), a sign that bulls are in control.
The stock has also moved above the 38.2% Fibonacci Retracement level at 1,245. Therefore, the stock will likely continue rising as bulls target the key resistance at 1,505p, the highest point this year.
This price is also along the 50% Fibonacci Retracement point, which is about 20% above the current level. A move above that level will point to more gains to the 61.8% retracement point at 1,725p. A move below the psychological point at 1,000p will invalidate the bullish view.
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