Brexit bounce expected for major 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 is set to reveal a return to likefor-like sales growth when it updates tomorrow.

Retail experts are forecasting a 1% rise in like-for-like sales in the second quarter to the end of September.

The improvement follows an eventful few months for Burberry after it announced in July that CEO Christopher Bailey will be replaced by Marco Gobbetti next year.

In May, the group also said it planned to slash £100 million in costs to help offset difficult trading after reporting a 10% fall in full-year profits.

However, analysts believe Burberry is now on the right track and praised its “see now, buy now” initiative.

Online outlet ASOS is also expected to report a jump in international sales on the back of the plunging pound when it reveals its results.

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% currency tailwind, helping it “finish the financial year with a flourish”.

A Burberry model on the catwalk.