Luxury fashion house Burberry is tipped to reveal rising sales this week as investors see the early fruits of an overhaul by new boss Marco Gobbetti.
Analysts at Barclays are forecasting a 3 per cent rise in like-for-like sales in the third quarter, which would mark the fashion label’s sixth consecutive period of positive figures.
Julian Easthope, an analyst at the bank, said Burberry could have been boosted by the Christmas gifting market.
The update comes after Gobbetti unveiled a new vision for the company in November, in an attempt to “sharpen” the brand’s positioning. The strategy includes the closure of outlets that are not in or near communities of luxury shoppers.
Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: “All being well the group will emerge both robustly profitable and with more control over its own destiny.”
Graham Spooner, investment research analyst at The Share Centre, said he expected the weak pound to play a part in the third-quarter update.
While the slump in sterling has resulted in a sharp rise in costs and knocked consumer confidence for UK shoppers, overseas consumers are now able to purchase goods at a knockdown price.
“The half-year results showed a reasonable pick-up in sales as Chinese and Hong Kong-based shoppers returned to its stores,” Spooner said.