Profits at luxury fashion house Burberry expected to soar by more than a fifth after shoppers splash out on coats and bags

By wazup on May 13, 2023 Comments Closed / 96 views

Innovative: British actress Jodie Comer at the Met Gala

© Provided by This Is Money Innovative: British actress Jodie Comer at the Met Gala

Profits at luxury fashion house Burberry are expected to soar by more than a fifth after shoppers splashed out on coats and bags.

City analysts expect the FTSE 100 group to have made more than £600 million last year, according to Refinitiv estimates, compared with around £492 million in 2021.

It will be the first set of full-year figures released under chief executive Jonathan Akeroyd, 56, who was given a ‘golden hello’ of £6 million for his move from Versace last March.

He has been keen to shake up designs and improve sales after ex-boss Marco Gobbetti left unexpectedly. Gobbetti hiked prices and cut discounts to make the group, for years seen as a downmarket, more exclusive.

Akeroyd appointed chief creative officer, Daniel Lee in October to refresh the brand. He created an innovative look for British actress Jodie Comer at the Met Gala this month.

Spending on luxury goods took a hit in the pandemic but has been protected from the cost-of-living squeeze because rich customers are feeling the pinch less.

Analyst Susannah Streeter, at Hargreaves Lansdown, said: ‘With shares just a nudge away from all-time highs, investors will want reassurance that the expected snap back in sales has materialised.’ She said the new focus has reaped rewards, with leather bags and coats selling well.