After crashing 68% in just 1 year, is this FTSE 100 share now a deep bargain?

Great taste is always in fashion. Whatever one thinks about the taste of fashion house Burberry (LSE: BRBY), though, its shares have fallen deeply out of fashion in the City. Over the past year, the FTSE 100 company has seen its share price crash by 68%. In other words, I could buy three Burberry shares for around the price I would have paid for just one a year ago. I recently added the company to my portfolio, because I think it could turn out to be a deep bargain. To begin, though, I will address the key issue. After all, a FTSE 100 share rarely if ever loses 68% of its value in one year for no reason. The problems in the business were already visible in last year’s performance and did not start in the most recent quarter. However, even a quick glance at the quarterly update issued this week shows some of the problems. Retail revenues fell over a fifth compared to the same quarter last year. Comparable store sales were at least 16% lower in all three of the company’s trading regions, showing this is not a localised problem. The dividend was axed and the chief executive...

Read more