2025-01-24 12:15

Q3 sales down 4% vs expected 12% decline Sales rise in Americas, decline in Asia Pacific and China Company says more likely to make annual profit now Shares jump 12% Jan 24 (Reuters) - Burberry (BRBY.L) , opens new tab reported a smaller than expected 4% drop in quarterly comparable store sales on Friday, helped by a stronger holiday season in the United States, an encouraging step in the British luxury brand's turnaround efforts. Burberry shares jumped 12% as investors welcomed the sign of improving demand, adding to hopes that luxury shoppers' confidence is returning. Shares in luxury conglomerate Kering also gained 8%, while sector leader LVMH was up 3%. Burberry CEO Joshua Schulman, who took over at the struggling brand six months ago, said its festive advertising campaigns, which highlighted its trademark trench coats and scarves more than bags and shoes, resonated with a broad range of customers. "We are extremely pleased with the results," Schulman told journalists on a call. "We have seen new customer growth in the month of December for the first time in over two years, and we've seen an increase in the brand desirability as well." Schulman's strategy is to put the focus on Burberry's best-known products to win back customers he said were alienated by less recognisable designs and higher prices. The company said cashmere scarves, priced between 420 and 990 pounds ($522-$1,230), as well as outerwear, outperformed globally. Analysts had expected a 12% decline in comparable sales for Burberry's third quarter, which runs to Dec. 28. "We view these results as a first (and early) step in the right direction," RBC analysts said in a note. Analysts at Citi said the strong sales reported by Richemont and Brunello Cucinelli recently could help make investors feel more optimistic that luxury demand is improving, helping turnaround stories like Burberry. SALES IMPROVE ACROSS REGIONS Schulman said New York, where the brand opened a refurbished store on 57th Street featuring "uber-luxe" coats, performed well, helping sales in the Americas grow 4% in the quarter. Burberry has stretched prices of its most expensive products in the U.S., like a $13,900 women's trench coat with mohair wool trims, reflecting better luxury demand there, Luxurynsight data shows. Other regions also delivered an improvement in sales from the previous quarter. Asia Pacific sales were down 9% after a 28% decline in the second quarter, while Europe, Middle East, India and Africa (EMEIA) sales were down 2%, against a 10% fall previously. Burberry's chief financial officer Kate Ferry said markdowns launched in December had contributed to improving sales and helped clear stock, but that full-price sales were also encouraging. Ferry said there were signs of stabilisation in consumer demand in China, a key market for the brand which opened a new store in Beijing in November. Mainland China accounted for about a fifth of Burberry's total revenue in its last financial year. The company said it was now more likely that it would make a profit over its financial year, expecting to offset the adjusted operating loss of 41 million pounds ($51 million) it reported in its first half. Third-quarter retail revenue was 659 million pounds ($818 million), down from 706 million pounds in the same quarter a year earlier. With Burberry set to present its Autumn/Winter 2025 collection at London Fashion Week on Feb. 24, rumours continue to swirl around how long creative director Daniel Lee will stay with the brand, with an Italian newspaper this week reporting he plans to join Jil Sander. Both Schulman and Ferry, asked by journalists and analysts whether Lee was leaving, said they don't comment on speculation. ($1 = 0.8074 pounds) Sign up here. https://www.reuters.com/business/retail-consumer/burberrys-quarterly-sales-drop-less-than-feared-2025-01-24/

2025-01-24 11:57

DAVOS, Switzerland, Jan 24 (Reuters) - There is too much pessimism around Europe and it could be time to be investing back in the region, BlackRock CEO Larry Fink said at the World Economic Forum annual meeting on Friday. Euro zone business began the new year with a modest return to growth as stable services activity in January was complemented by an easing of the long-running downturn in manufacturing, a survey released earlier on Friday showed. "There's too much pessimism on Europe," Fink said during a panel debate on the global economic outlook in Davos. "I believe it's probably time to be investing back into Europe," he said, adding there was still progress to be made in areas such as capital markets union. On the same panel, IMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde agreed Europe needed to better mobilise capital to boost its economy. "We need to keep the talents at home, we need to keep the savings at home," said Lagarde, who characterised the global economic challenges facing Europe as Donald Trump's new presidency begins as representing "an existential threat". "If European leaders can get their act together and respond to this existential threat, there is a huge potential for Europe to respond to the call," she said. Speaking about the outlook for U.S. inflation, BlackRock's Fink said he was not too worried, adding that the U.S. Treasury yield curve reflected expectations for higher inflation and also fiscal deficits. The benchmark U.S. 10-year Treasury yield, trading at 4.64% , has risen from lows of around 3.60% in September. "I can see a scenario, I am not calling for it, where we see 5.5% on the 10-year (U.S.) yields," Fink said. Sign up here. https://www.reuters.com/business/finance/davos-blackrocks-fink-says-probably-time-be-investing-back-europe-2025-01-24/

2025-01-24 11:51

LONDON, Jan 24 (Reuters) - Online fast-fashion retailer Shein requires its contract manufacturers to only source cotton from approved regions, which do not include China, for products it sells in the United States, its biggest market, the company said on Friday. Approved cotton sources include Australia, Brazil, India, the United States and, "in limited cases", certain countries in Europe, Middle East and Africa, and Southeast Asia, Shein said in written evidence to a British parliamentary committee inquiry published on Friday. Shein said this requirement is for its compliance with the Uyghur Forced Labor Prevention Act, legislation intended to ban products made by forced labour in China from entering the United States. Shein has faced allegations that its products contain cotton from China's Xinjiang province, where the U.S. and NGOs have accused the Chinese government of forced labour and human rights abuses. Beijing denies any abuses. Shein, which sells in 150 markets worldwide, said its supplier code of conduct prohibiting forced labour also applies, regardless of the country its products are sold in. Shein did not specify whether its rules on approved cotton sources applied to other markets, such as the UK, where it is planning a London listing. A senior lawyer at Shein presented oral evidence at a parliamentary hearing on Jan. 7 but declined to answer lawmakers' questions about Shein's use of cotton from China, with committee chair Liam Byrne saying her response bordered on contempt of the committee. Sign up here. https://www.reuters.com/business/retail-consumer/shein-details-cotton-sourcing-policy-written-evidence-uk-lawmakers-2025-01-24/

2025-01-24 11:48

BASRA, Jan 24 (Reuters) - A fire broke out at a crude processing unit at Iraq's Rumaila oilfield on Friday and fire crews were trying to bring it under control, three energy sources told Reuters. Operations at the field have not been affected, the sources said. The fire started at an oil storage tank inside the crude unit (DS5) and fire fighters are still trying to contain the fire, said two engineers at the field. Two local oil workers suffered minor burn injuries, the sources said. Production at Iraq's superman Rumaila oilfield stands at about 1.45 million barrel per day (bpd), said two officials at the field. Sign up here. https://www.reuters.com/world/middle-east/fire-breaks-out-iraqs-rumaila-oilfield-sources-say-2025-01-24/

2025-01-24 11:46

Jan 24 (Reuters) - The pound rallied against the dollar on Friday, on track to close the week higher after three weeks of losses, as a lack of concrete tariff policies during U.S. President Donald Trump's first week in office pressured the greenback across the board. Sterling was up 0.6% against the dollar after touching its highest since Jan. 9 at $1.2344. Similar to other major currencies, the pound chased steep weekly gains against the greenback, and looked set to end the week 2.1% higher. Trump said in an interview published late on Thursday that he thought he could reach a trade deal with China and that he would rather not use tariffs against the country, while also calling them a "tremendous power". Uncertainty surrounding Trump's tariff policies have set the tone for currency markets this week, with investors broadly selling off the dollar. Trump's latest remarks underscore that tariffs can be used as a negotiation tool, analysts said, signalling that some of the expected trade policies that markets had braced for might not materialise. "The threat of tariffs will be used to gain favourable terms for U.S. businesses, but eventually tariffs will not be as bad a feared," said Mohit Kumar at Jefferies. Kumar added that continuous headlines about tariffs would still spur market volatility. The euro was up about 0.1% against the pound at 84.39 pence on the day, but the currency pair had hardly moved on the week. The common currency has still gained 2% against sterling since the start of the year, amid increased investor concerns about Britain's economic outlook. Tepid growth across British businesses picked up slightly at the start of 2025, though employment and optimism contracted again and price pressures rose, data showed on Friday. The preliminary "flash" reading of the UK S&P Composite Purchasing Managers' Index (PMI) inched up to 50.9, a three-month high, from 50.4 in December. Sign up here. https://www.reuters.com/markets/currencies/sterling-jumps-tariff-doubts-weigh-dollar-2025-01-24/

2025-01-24 11:44

AFP says project under review and power deal revoked Adani denies power purchase deal is revoked Sri Lanka is reviewing projects following US indictment Ministry officials told Reuters deal still under review Jan 24 (Reuters) - India's Adani Group's power purchase deal with the Sri Lankan government is intact, the company said on Friday, after the AFP news agency reported it had been revoked, citing a government official and a document. Sri Lanka has been reviewing the group's local projects after U.S. authorities in November accused billionaire founder Gautam Adani and other executives of being part of a scheme to pay bribes to secure Indian power supply contracts. Adani has denied the allegations. It also denied the AFP report its 20-year deal power purchase agreement (PPA) signed in May 2024 had been revoked. "Reports that Adani's 484 MW wind power projects in Mannar and Pooneryn have been cancelled are false and misleading. We categorically state that the PPA has not been revoked," Adani's spokesperson said in a statement. Adani said the Sri Lankan cabinet's decision earlier this month to re-evaluate the tariff approved in May was a "standard review process" with a new government and that the group remains committed to investing $1 billion in Sri Lanka's green energy sector. Sri Lanka's Power and Energy Ministry declined to comment. Two ministry sources told Reuters, on condition of anonymity because they were not authorised to speak publicly, they were still reviewing the project and the power purchase deal had not been revoked. Under the deal with Sri Lanka, Adani Green Energy (ADNA.NS) , opens new tab would build two wind power stations in the South Asian island nation's northern province, with a total investment of $442 million. The company would be paid 8.26 cents per kilowatt-hour (kWh). Cash-strapped Sri Lanka, which has suffered from power blackouts and fuel shortages, has been trying to speed up green power generation to hedge against surges in imported fuel costs. The U.S. allegations raised concerns among some partners and investors of the group, with at least one Indian state reviewing its power deal with Adani and TotalEnergies (TTEF.PA) , opens new tab halting further investments in the conglomerate. Overseas, Kenya has scrapped more than $2.5 billion in deals with the Adani Group, including contracts to develop an airport and build power transmission lines, following the U.S. indictment. The Adani Group is also involved in building a $700 million terminal project at Sri Lanka's largest port in Colombo. Adani Green Energy shares closed 1.8% lower in Mumbai, while the group's flagship unit Adani Enterprises (ADEL.NS) , opens new tab ended nearly 3% lower in a weak broader market (.NSEI) , opens new tab. Sign up here. https://www.reuters.com/markets/deals/sri-lanka-revokes-power-purchase-deal-with-adani-group-afp-reports-2025-01-24/