Brexit could give Burberry a £90m boost ahead of city move

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.

By The Newsroom
Monday, 11th July 2016, 9:07 am
Updated Thursday, 25th August 2016, 5:06 pm
Emma Watson is one of the faces of Burberry.
Emma Watson is one of the faces of Burberry.

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.

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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: “P​assenger 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.