FTSE tipped to open modestly higher with Burberry in focus

PRE-OPEN REPORT: Shares are tipped to open thirteen to seventeen points higher today, according to financial websites, with luxury brand Burberry Group in focus as it updates the market on trading.

Burberry Group reported total revenue up 17% underlying (up 21% reported) in the half-year to end-September.

Retail revenue was up 20% underlying (up 24% reported) and there was comparable store sales growth of 9%, with mainline stores up double-digit in both Q1 and Q2.

Burberry said there was a material improvement in gross margin. Outerwear and large leather goods drove about half of growth. Wholesale revenue was up 17% underlying (up 20% reported). Licensing revenue was down 3% underlying (up 9% reported).

Looking forward, Burberry now expects about 25% increase in H2 selling space, of which about 15% is China. It also anticipates about 10% increase in H2 underlying wholesale revenue excluding China.

In the US last night, the Dow added 10 points at 11,020, the Nasdaq Composite rose 16 points at 2,418 and the S&P500 gained 4 points at 1,170.

Yesterday, shares closed slightly lower after a modest rally in the afternoon, with mining issues a major millstone for the main index and negative broker comment taking its toll in many sectors.

At the close of business, the FTSE100 was down 10,81 points at 5,661.59 with the FTSE250 off 51.28 points at 10,753.56 and the FTSE Smallcaps little changed at 3,055.25.