She set a series of operational problems Burberry (LSE: BRBY) In recent years he has been shared through a mill. This means that someone who has invested 10 years ago – when the company was still exchanged on FTSE 100 – would cultivate a nasty loss.

He had an investor, he put 10,000 pounds in nowFTSE 250 Business on May 14, 2015 would now have $ 5,528 on their investment account. This is a loss of 44.7%.

Fortunately, at that time the dividend stream (excluding pandemic breaking) would break the advantage. Over the past 10 years, Burberry has given a total dividend of 408 pens per share.

This means that the investment 10,000 ten years ago would ensure a total refund of 7,841 pounds or -21.6%.

But could the fashion giant soon turn the corner and provide solid returns, looking into the future? Judging by the rapid raise in Burberry share prices on Wednesday (May 14), the wider market suggests that the answer may sound “yes”.

Another needy update

The FTSE 250 company has now increased by almost 18% from Tuesday’s closure, by 975 pens per share. This happens despite the submission of another huge decline in sales in the last budget year (until March 2025).

At 2.5 billion GBP, revenues fell by 17% based on the reported, i.e. 15% with fixed currencies. Comparable sales of stores fell in its regions, causing a 12% decline in year a year at the group level.

Trade was particularly delicate in Asia, where proper sales fell by 16%.

As a result, the corrected operational profit of 94% with actual exchange rates and 88% with fixed currencies, up to 26 million GBP. The company also fell to loss before taxing of 66 million GBP with a profit of 383 million GBP a year earlier.

The company was also not full of trust in the current budget year. He stated that “The current macroeconomic environment has become more uncertain in the light of geopolitical development“.

Added that “We are still at an early stage of our return“And this focus on tax 2026 “It will be based on the early progress, which we have made in re -annuality of the brand’s desire as crucial for the development of the highest line“.

Burberry predicted that margins would improve with plans to improve the company’s performance and simplify.

Do this buy?

So why did the company’s share price raise? This is mainly for better than expected sales at the end of the year, which according to investors may show progress as part of the “Burberry Forward” return strategy.

Comparable sales of stores fell by 6% in the fourth quarter, but still overcame the forecasts by about 2%. The company hopes that just like emphasizing its British brand; emphasizing the key lines of external clothing; And acceleration of cost savings will restore them to the right tracks.

But Burberry has a long way before he can prove that any recovery is balanced. And I feel that the optimism that sent the price of the action through the roof is significantly premature.

The luxury goods market remains under significant pressure when consumers regain expenses. And although for now the tariff conversation has died, all novel events can maintain the exacerbation of buying strings. Burberry is particularly vulnerable to deteriorating trade wars, taking into account the huge rely on China.

In addition, Burberry operates in a ruthless industry in which the competition between Superbrands is intensive. Before buying, I will want to see more progress in the company’s brand and product strategy.