This is when luxury brand Burberry provides an update for investors
Investors will be hoping for a positive trading update from the luxury fashion label Burberry as it implements a new strategy with the aim of boosting its market share.
Burberry, which has manufacturing sites in Castleford and Keighley, in West Yorkshire, is due to publish its third quarter update on Wednesday 21 January. In November, Burberry revealed it had delivered its first rise in store sales for two years as turnaround efforts also helped the luxury fashion label cut half-year losses. The group said comparable same store sales lifted 2 per cent in its second quarter and remained flat overall in the first half, compared with a 20 per cent plunge a year earlier.
Richard Hunter, Head of Markets, interactive investor said: “At the half year results in November, the numbers were flattered by comparisons to the group’s previous ‘annus horribilis’, but nonetheless a promising new trend could be emerging as a result of the new “Burberry Forward” strategy.
“The shares have risen by 35 per cent over the last year, enabling the group to rejoin the FTSE100 in September.
"However, they remain down by 42 per cent over the last three years, which gives an indication of the mountain Burberry still needs to climb, especially in two of its most important regions, namely the US and China.
“The most recent update saw comparable store sales flat in relation to the corresponding period, but ahead by 2 per cent in the second quarter, which represented the fourth consecutive quarter of improvement since the new CEO was installed.
"It was also the first quarter of growth in two years, ahead of the expected 1 per cent, and vastly improved on the negative 20 per cent of the previous year, all of which provided some comfort to investors.”
The outlook comments were optimistic but not cavalier, said Mr Hunter.
He added: “Burberry fully recognises that the transformation is still in its early stages, and that of course the fashion industry can be a fickle business.
"At the same time, a brand which had moved away from its traditional British traits of heritage and innovation, which had such appeal to overseas buyers and particularly tourists with an aspirational and stylish look, needs to be re-established.
“There is also a particular emphasis on the outerwear for which it has become traditionally known, which is currently outperforming expectations. It remains to be seen whether the new found momentum was continued in the “golden quarter” which included the festive season.”
Mr Hunter continued: “As such, the pressure will be on Burberry to maintain growth and demonstrate that the second quarter performance was not a flash in the pan.”