The Burberry (LSE: BRBY) share price has been via hell lately. Now it’s again with a vengeance.

I pored over this morning’s (24 January) Q3 outcomes, which embody the essential Christmas buying and selling interval, questioning how traders would reply. 

Would they take flight on the 7% year-on-year drop in retail revenues to £659m? Or view that as progress following a 22% gross sales first-half hunch?

Comparable retailer gross sales fell by simply 4% in Q3, in contrast with a 20% drop within the first half. That’s progress of kinds however they’re nonetheless falling.

Can the FTSE 250 inventory keep on with its restoration?

I additionally questioned whether or not markets would swallow CEO Joshua Schulman’s declare at the moment that his strategic plan “will improve our performance and drive long-term value creation”.

Within the group’s final set of outcomes, revealed on 14 November, traders swung behind the brand new broom. Burberry shares jumped 17% as Schulman unveiled his ‘Burberry forward’ plan by focusing on £40m in financial savings and “reconnecting our brand with its original purpose”.

The extra I checked out at the moment’s report, the extra optimistic I felt. Particularly with Schulman stating that “it is now more likely our second-half results will broadly offset the first-half adjusted operating loss”.

In November, Burberry stated it was too early to inform whether or not the second half would absolutely offset the primary half on a bottom-line foundation. In order that’s progress too. I anticipated one other bounce within the inventory and boy, did we get it.

As I write, it’s up 15% and I’m a contented chap as a result of Burberry was my largest loser final yr, leaving me with a 40% paper loss at one level. That’s regardless of shopping for the shares after the primary of a number of revenue warnings, and averaging down with every subsequent slice of unhealthy information.

The rally started in November and the shares at the moment are up 50% within the final three months. Though they’re nonetheless down round 14% over one yr (and 55% over two).

In addition to celebrating the restoration, I’m kicking myself for not shopping for much more when Burberry was down. Though I’ve discovered that it’s virtually unimaginable to name the very backside of the market, or a person inventory.

This development inventory is again in play

So at the moment, I’ll take the win and stay up for a brighter 2025. I have already got a giant stake in Burberry, so gained’t purchase extra. I can see why different traders would take into account doing so. However I’d take my time, personally, and beware revenue takers. Shares have a behavior of retreating after a giant early morning bounce like this one. Additionally, the inventory isn’t as low-cost because it was, buying and selling at 14.5 instances earnings.

Additionally with the worldwide financial system nonetheless struggling, we are able to’t assume the shoppers have gotten their style for luxurious again. China is a selected fear as its financial system resists makes an attempt to get it shifting once more.

The US is in a extra optimistic temper, however then now we have Donald Trump’s commerce tariffs to fret about. Burberry could be proper within the firing line, ought to we get them.

Additionally, markets are placing a number of religion in Shulman’s phrases, however as he admits himself, “it is still very early in our transformation and there remains much to do”. Sufficient of that. Let’s get pleasure from at the moment. Burberry is again on monitor and these items might be infectious. Deliver it on!