Burberry back on trend as weak pound lifts international sales

FASHION groups Burberry and Asos look set to benefit from the weak pound when they report figures tomorrow.

Luxury brand Burberry is expected to reveal that sales are growing again following four quarters of decline in a row.

Analysts believe it will report a 1pc rise in sales for the second quarter of the year tomorrow – far better than the 3pc slide seen in the first quarter.

Burberry has benefited from the fall in the pound as tourists flock to its shops in the UK. But the main gain has been because it makes most of its sales overseas – with the value pushed up when the takings are converted back into sterling.

In July, Burberry said it was in line for a £90m profit boost from the pound, but the

further falls in sterling since then could see the group revise this higher.

It has been an eventful few months for the company, which announced

in July that Christopher Bailey (pictured with Burberry model Lily

James) will be sidelined as chief executive and replaced by Marco Gobbetti, currently at French label Celine.

Bailey will move to the role of president while retaining his title of chief creative officer. Shares hit a 14-month high of 1530p on Friday.

Asos shares are at their highest level for two-and-a-half years, at 5273p, and it is also expected to report a jump in international sales on the back of the pound when it reveals its annual results tomorrow.