Burberry could get a £90m boost from the Brexit vote as overseas shoppers rush to the UK to pick up bargains following the collapse of the pound.
The firm, which is moving to a new state-of-the-art manufacturing and weaving facility in Leeds, is expected to say it is benefiting from the plunge in sterling when it announces first quarter trading results on Wednesday.
Analysts at Jefferies are pencilling in a 10 per cent boost in earnings as a result of a weak pound, flagging that any slowing demand from British consumers will be offset by a surge in Chinese purchasers and tourists. Most of the Burberry’s sales come from overseas.
James Grzinic at Jefferies said: “Passenger growth trends below do suggest expected increase in inbound Chinese travellers.” Before the referendum, Burberry’s Halifax-born chief executive Christopher Bailey and chairman John Peace told staff that a Leave vote would trigger “unnecessary economic consequences” and that the business would be “stronger and more prosperous” inside the EU.
However Burberry, which employs 800 workers in Castleford and Keighley, is seeing an unexpected benefit as shoppers come to the UK for a “cheap” shopping trip.