REtailers Burberry and ASOS will report from opposite ends of the fashion spectrum next week, but both are expected to benefit from the Brexit-hit pound.
Luxury fashion firm Burberry, which makes its world-famous trnch coats in Yorkshire, is set to reveal a return to like-for-like sales growth when it updates on trading after a tough first half.
The embattled group is expected to have benefited from a better summer for luxury sales, with analysts expecting Tuesday’s update to show a turnaround since a painful first quarter, when like-for-like sales fell three per cent.
It has been an eventful first half for the firm, which announced in July that Christopher Bailey will be sidelined as chief executive and replaced by Marco Gobbetti, currently at French firm Celine.
Mr Gobbetti joins next summer and Mr Bailey will move to the role of president and retain his title of chief creative officer.
The changeover at the top comes as the group looks to stop falling profits and slowing sales.
In May, the group said it would slash £100 million in costs to help offset difficult trading after reporting a 10 per cent fall in full-year profits. But analysts believe Burberry is on the right tracks with its turnaround and has been widely praised for its recent move to launch a “see now, buy now” fashion show.
Meanwhile Online fashion firm ASOS, which has a masive distribution centre in Barnsley, is expected to report a jump in international sales on the back of the plunging pound when it reveals its annual results on Tuesday.
Analysts at Shore Capital said the firm will unveil a sales boost in America and Europe thanks to sterling’s collapse following Britain’s vote to leave the European Union.
The broker’s analyst George Mensah said ASOS was buoyed by an 8 per cent currency tailwind, helping it “finish the financial year with a flourish”, with 28.9 per cent sales growth in the two months to August 31.