Burberry expected to post growth ahead of AGM

Burberry destroys

Burberry’s first quarter results on Wednesday is expected to show growth, just days after it welcomed its new chief executive Marco Gobetti.

Ahead of its annual general meeting on Thursday, Gobetti took the reins on July 5, seeing Christopher Bailey relinquish his dual role as well as control of the company.

Investors will be watching closely to determine the tone of Gobetti, who joins amid a turnaround strategy and potential shareholder revolt over executive pay.

The weakened pound is predicted to have boosted Burberry‘s sales, despite a 21 per cent drop in underlying pretax profits last year.

READ MORE:  Burberry poised for 2nd shareholder revolt

“Key to the group is the health of the Chinese economy, but the latest evidence is that China is beginning to show some weakness again,” The Share Centre‘s investment research analyst Graham Spooner said.

“However, for the group as a whole, it was reporting better quarterly updates lately and there is expectation for some of the momentum to continue.

“There may be a continued pickup in the European markets while UK sales should be boosted by a weak sterling and overseas travellers shopping over here. Licensing and wholesale will probably continue to fall.”

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