Burberry Set to Announce Sales Rise as It Seeks Out Posher Shoppers

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This week, Burberry is expected to post an increase in sales as the company moves ahead with a change in its strategy.

Analysts are anticipating Burberry to post a three percent sales increase when the company updates the market on Wednesday.

Marco Gobbetti, the chief executive of Burberry, has begun on a new strategy for the business since joining the company last July, slashing non-luxury wholesale agreements to bring their brand more upmarket. Gobbetti has also started on a re-fit of the stores of Burberry.

“All being well the group will emerge both robustly profitable and with more control over its own destiny,” stated an equity analyst at Hargreaves Lansdown, Nicholas Hyett.

“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 percent. 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.”