Fashion chain Burberry is expected to post rising sales next week in the retailer’s first update since new boss Marco Gobbetti’s announced an overhaul that will see it focus on luxury shoppers.
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.
Julian 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.
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.
“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.
It 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.