The new boss of loss-making Burberry today vowed to “capture British wit and style” as part of his plan to revive the luxury goods group.
Joshua Schulman said the brand had moved too far from its core strengths, leading to performances such as today’s £53 million operating loss.
Other companies reporting today included the retailer WH Smith and insurer Aviva.
FTSE 100 Live Thursday
- Burberry posts loss, returns to roots
- WH Smith travel profits surge
- Aviva hails strong momentum
Market update: Burberry plan fires up shares, Aviva and Spirax lead FTSE 100
10:31 , Graeme EvansBurberry’s pledge to “capture British wit and style” fired up turnaround hopes today in a session when Aviva, Spirax and B&M provided the FTSE 100 cheer.
New boss Joshua Schulman said the brand had moved too far from its core strengths, leading to performances such as today’s £53 million operating loss.
His vow to refocus the business on outerwear and its British roots seemed to please investors today, particularly as the results were not quite as bad as feared.
Burberry shares jumped 15% or 107.9p to 839.3p, still down from the 2600p seen in April 2023 when the company was a member of the FTSE 100 index.
The shares were among several to rise on the back of trading updates.
In the FTSE 100, Aviva led the way after chief executive Amanda Blanc said recent trading had been “extremely positive right across the business”.
General insurance premiums rose 15% to £9.1 billion in the first nine months of the year, driven by strong new business in the UK and pricing moves to offset inflation.
Wealth net flows of £7.7 billion were 21% higher, reflecting growth in workplace pensions and strong demand from its financial adviser platform business.
The shares, which topped 500p this summer, lifted 4.5% or 20.3p to 475p,
The insurer was joined by thermal engineering firm Spirax after it reported revenues growth better than the rate of the first half. Shares rose 270p to 6640p, cutting this year’s decline to 35%.
B&M European Value Retail shares also staged a fightback after this year’s weakness, rising 14.7p to 394.5p on the back of half-year results.
Underlying earnings of £274 million rose 2% and came in slightly ahead of City expectations, boosting confidence ahead of the retailer’s busiest quarter.
The strong results-day performances, which also included a surge of 110p to 3440p for private equity group 3i, helped the FTSE 100 index edge away from a three-month low with a rise of 10.48 points to 8040.81.
The FTSE 250 index lifted 43.19 points to 20,402.40. Premier Foods rose 4% at one point after the Mr Kipling business reported an 8.9% rise in half-year profits to £61 million.
The shares later returned to their opening mark at 1874p, while a 16% dividend hike on the back of a strong retail performance failed to prevent WH Smith shares falling 58p to 1243p.
Loss-making Boohoo gets £39m funding boost
09:39 , Graeme EvansBoohoo has received a £39 million boost after the Karen Millen and Debenhams owner placed new shares in a “significantly oversubscribed” fundraising.
The offer, which took place at 31p a share, followed the release of results showing that pre-tax losses rose to £147.3 million in the six months to August 31.
New chief executive Dan Finley said: "We are pleased with the level of support from our existing shareholders for the business in its next stage of growth.
“We trust that the retail offer provides smaller shareholders the opportunity to participate also."
The proceeds will be used to pay down debt while Boohoo looks to rebuild following its slide in valuation. Shares were today at 30p, down 90% in five years.
It has also urged investors to vote against resolutions proposed by major shareholder Frasers Group ahead of an emergency meeting on 20 December.
Aviva among risers in downbeat FTSE 100, Premier Foods up 4%
08:42 , Graeme EvansThe FTSE 100 index has fallen 11.21 points to 8019.12, despite a positive response to updates by a number of blue-chip companies.
Insurer Aviva rose 12.2p to 466.9p, B&M European Value Retail by 14.8p to 394.6p and thermal solutions business Spirax by 6% or 390p to 6760p.
Other stocks up by more than 1% today included BP, Marks & Spencer and British Gas owner Centrica.
The FTSE 250 index is 13.24 points higher at 20,372.45, with stronger Burberry shares joined by Premier Foods after the Mr Kipling owner reported an 8.9% rise in half-year profits to £61 million. Shares rose 4% or 8.2p to 196p.
Retailer WH Smith fell 58p to 1243p, despite increasing its total dividend by 16% in today’s annual results.
Burberry shares rally on turnaround strategy
08:31 , Graeme EvansBurberry shares are up11% or 80.2p to 811.6p after new boss Joshua Schulman unveiled his plan for reviving the iconic British luxury goods brand.
The results-day upturn follows a 70% fall from their peak of over 2600p in April 2023, a decline that led to relegation from the FTSE 100 index.
China’s economic uncertainty has put pressure on valuations across the luxury sector, adding to Burberry’s own ongoing trading issues.
Richard Hunter, head of markets at Interactive Investor, said: “Despite the group’s renewed determination, the market consensus of the shares as a sell is unlikely to waver until such time as some measurable progress is made on the new strategy.”
Aviva boss hails strong quarterly performance
07:57 , Graeme EvansAviva chief executive Amanda Blanc today hailed the insurer’s strong performance, with recent trading “extremely positive right across the business”.
She said today’s third quarter figures showed the benefits of Aviva's scale and diversification.
Blanc added: ““Quarter after quarter, we are delivering consistently superior results and growing Aviva, particularly in the capital-light businesses.
General insurance premiums rose 15% to £9.1 billion in the first nine months of the year, driven by strong levels of new business in the UK and pricing actions to offset the inflationary environment.
Wealth net flows of £7.7 billion were 21% higher, reflecting continued growth in workplace pensions and strong demand from its financial adviser platform business.
Aviva said the bulk purchase annuity market had been very active, with the company increasing volumes to £6.1 billion.
WH Smith travel momentum continues, dividend up 16%
07:43 , Graeme EvansA “particularly strong” performance in its UK travel stores today helped WH Smith to report a 16% rise in headline profit to £166 million
The UK division benefited from a strong peak season and a repositioning from a news, books and convenience retailer to a one-stop-shop for travel essentials.
UK travel’s trading profit rose 20% million to £122 million, while the figure in the high street estate remained at £32 million in year to 31 August.
Trading profit in North America rose by £5 million to £54 million as the chain continues to build its exposure in the world's largest travel market.
Its recent expansion includes at Dallas, Denver and Washington Dulles airports.
Chief executive Carl Cowling said: "The new financial year has started well. While there is some economic uncertainty, we are confident that 2025 will be another year of good progress for the group."
In addition to the £50 million share buyback announced in September, the company has increased its dividend for the year by 16% to 33.6p a share. This includes a final dividend of 22.6p.
Loss-making Burberry returns to roots in turnaround plan
07:16 , Graeme EvansNew Burberry boss Joshua Schulman today unveiled his strategy for reviving the struggling luxury goods retailer.
He said: “Over the past several years, we moved too far from our core with disappointing results.
“Our brand expression was focused on being modern at the expense of celebrating our heritage. We introduced new brand codes and signifiers that were unfamiliar to our customers.”
Schulman’s plan will lead with outerwear and earn authority in other categories, while positioning Burberry as a luxury British brand.
He added: “Today's luxury customer craves authenticity.
“As the only British luxury brand with such strong foundations, we have a competitive advantage. We will leverage our strengths and broad universal appeal to reclaim market share.”
He unveiled his strategy alongside half-year results showing a £53 million operating loss.
Ahead of the festive season and with trading conditions uncertain, he said it was too early to say if the loss will be recovered in the second half of the year.
Inflation figure dents Wall Street mood, FTSE 100 seen lower
07:01 , Graeme EvansA pick-up in the rate of US inflation yesterday contributed to a mixed session on Wall Street.
The Dow Jones Industrial Average and S&P 500 index finished near to their opening marks, while the Nasdaq Composite fell 0.3%.
The weaker session came as fears that interest rates will stay higher for longer were not helped by a rise in the inflation rate to 2.6% in October.
The FTSE 100 index steadied after Tuesday’s poor session to close up by 4.56 points to 8030.33. It is seen falling 19 points at today’s opening bell.
