We're back with our semi-regular Short of the Week column for our subscribers. This is our second time shorting Burberry stock, but many of the reasons behind our original profitable short are back in place, although not the pandemic.
We last shorted Burberry [LON:BRBY] in the dark days of early 2020. At the time the pandemic had not fully taken hold in Europe, but was causing a retail shutdown in China. We went short Burberry at £18.80 on 18 February. The price dropped to £11.59 on 20 March before starting to rally during lockdown in late March. We closed out at £13.90 as the stock rallied through our hard stop in early April.
This time things look a little more serious for Burberry. The fashion retailer's shares were trading at over £26 in April 2023, and have since slipped to £6.71. It has been a much more profound decline in the stock than during the pandemic.
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