Burberry bosses braced for chequered future...

A TENSE week ahead at Burberry where bosses could get a bloody nose at their annual meeting to be followed by the release of a trading update that might be best approached with low expectations.

Glass Lewis is advising shareholders to vote against the reappointment of Danone chief executive Antoine de Saint-Affrique as a director, warning that he could be overstretched if there was a crisis at the luxury goods giant.

Meanwhile, Pirc is urging investors to oppose the pay report, pointing out that Burberry executives are paid 44 times more than the average member of staff.

Analysts expect that the trading figures, to be announced on Friday, will show a drop of more than 40 per cent in first-quarter revenues because of China’s economic situation and Covid lockdowns. Shares have already dropped this year with this in mind.

Hargreaves Lansdown’s Sophie Lund-Yates warns a shaky outlook could hit shares further.

■ B&Q owner Kingfisher is the latest target for hedge funds.

Almost 8.6 per cent of the FTSE100 group’s stock is out on loan to shortsellers who are betting that its share price will drop.

This adds up to a whopping £420million position against the group, which was formerly one of the ‘pandemic winners’ after those stuck at home during lockdowns hastily caught up with redecorating projects and spent more time working from their spare rooms.

A ‘teach-in’ day for analysts and investors last week had little effect and some short positions rose afterwards.

Short bets have also increased as the scale of the cost-of-living crisis becomes more apparent and threatens to hit sales.