Burberry to unveil sales rise as it seeks out (even) posher shoppers

 
Helen Cahill
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Burberry Announces Quarterly Earnings
Sterling’s devaluation boosted Burberry’s sales last year (Source: Getty)

Burberry is tipped to post a rise in sales this week as it moves ahead with a change in strategy.

Analysts are expecting Burberry to post a three per cent sales rise when it updates the market on Wednesday.

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Chief executive Marco Gobbetti has started on a new strategy for the business since joining the firm last July, cutting non-luxury wholesale agreements to bring the brand more upmarket. Gobbetti has also embarked on a re-fit of its stores.

"All being well the group will emerge both robustly profitable and with more control over its own destiny," said Nicholas Hyett, equity analyst, Hargreaves Lansdown.

"While analysts acknowledge the potential, the short-term focus was on the impact of the higher capital requirements and lower sales numbers. Consequently, on the day of the news the shares shed 10 per cent. Smooth execution of the new strategy will be the priority this year, and a potential driver of the share price. 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.”