Hopes high for first Burberry figures since new vision launch

FASHION chain Burberry is expected to post rising sales this 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 Burberry could have been helped by the festive 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, mainly affecting Burberry’s wholesale arm.

Burberry will also ditch its outlets within department stores, and 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-forlike growth.”

Mr Gobbetti’s shake-up came after Burberry confirmed former boss and chief creative officer Christopher Bailey will leave the board, ending his 17-year association with the 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.