Burberry set for luxury shopper focus as analysts predict rising sales figures
Barclays predicts the firm will post a three per cent rise in like-for-like sales in the third quarter, its sixth consecutive period of positive figures.
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Hide AdJulian Easthope, analyst at the bank, said that Burberry could have been boosted by the Christmas gifting market.
Wednesday’s update comes after Mr Gobbetti unveiled a new vision for the firm in November in a bid to “sharpen” the brand’s positioning.
The new strategy involves a store closure programme and see Burberry also ditch its outlets within department stores, as well as shut stores that are not in or near communities of luxury shoppers.
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Hide AdNicholas 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.
“However, we’re unlikely to get a meaningful update this early on. For these results, sentiment will be driven by sales numbers. We’re hopeful the group can deliver a sixth consecutive quarter of positive like-for-like growth.”
Mr Gobbetti’s shake-up came after Burberry confirmed that former boss and Halifax-born chief creative officer Christopher Bailey will step down from the board, ending his 17-year association with the high-end fashion house.
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Hide AdIt clears the path for Mr Gobbetti to stamp his mark on Burberry, as he also embarks on an ambitious cost-cutting plan.
Graham Spooner, investment research analyst at The Share Centre, also expects the weak pound to play a part in the third quarter update.
Clothing retailers reported a mixed Christmas with Marks & Spencer, Debenhams, House of Fraser, Moss Bros and Mothercare all posting troubling figures.
Burberry has a high-specification weaving plant at Castleford and employs back office functions in Leeds City Centre.