Luxury fashion retailer Burberry is expected to post like-for-like retail sales growth of about 6% when it reports its fourth-quarter results on Tuesday.
Analysts expect the sales growth to come in below the third quarter’s 10% like-for-like advance because Burberry entered the fourth quarter with less stock than in the previous years, when the company discounted heavily.
Burberry expects its wholesale sales to be down 10% to 12% in the second half as a result of its closure of the Spanish Thomas Burberry business and its decision to exit some European accounts.
Shore Capital analyst Kate Calvert said: “At its much better than expected third-quarter update, management indicated it expected [full-year] profit to be towards the top end of the market range, which was £200m. We raised our forecast to £198m.”
She added: “Burberry is an under-exploited brand and a fantastic long-term growth story with plenty of opportunity to expand geographically in the US and emerging markets as well as diversify the brand into new product categories.”
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