Growth expected at Burberry in Gobbetti’s first quarter

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Burberry

Burberry is set to release its first update since being under the control of new chief executive Marco Gobbetti, with analysts predicting its sixth consecutive period of growth.

The luxury fashion retailer will unveil its third-quarter results later this week, following the announcement of a new vision for the brand laid out by Gobbetti amid the interim results in November.

The new strategy involves a limited store closure programme, shutting stores that are not in or near luxury shopping precincts, while cutting department store concessions.

Barclay’s analyst Julian Easthope bank has predicted that this new strategy will lead to a three per cent rise in like-for-like sales, aided by gifting over Christmas.

Equity analyst at Hargreaves Lansdown Nicholas Hyett added that the results are unlikely to provide a meaningful picture of Gobbetti’s efficacy.

“All being well the group will emerge both robustly profitable and with more control over its own destiny,” he said

“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-for-like growth.”

The Brexit-hit sterling is also expected to play a role in Burberry’s figures, benefiting largely from Chinese tourists taking advantage of the favourable exchange rates.

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