SHARE OF THE WEEK: Burberry investors await China update

Burberry will reveal how demand for its trenchcoats and other goods is holding up next week.

The British fashion house’s sales jumped 10 per cent to £3.1billion in the 12 months to April 1.

The company, whose products are beloved by celebrities including Naomi Campbell and Carey Mulligan, will reveal how it has fared on Friday.

Investors will be after an update on trading in China, which has reopened after a three-year lockdown. 

Luxury brands have benefited from booming demand for goods from Chinese customers, and shareholders will hope Burberry enjoyed a similar boost.

The shares hit a record high in April but have fallen back.

Russ Mould, investment director at AJ Bell, said: ‘The gains of the past year owe at least something to a reopening in China after three years of lockdowns, as it is a big consumer of luxury goods, and the recent slide may be China-related as well, given how it does not seem to be picking up steam as quickly as many hoped.’

Burberry chief executive Jonathan Akeroyd has suggested sales will reach £3.3billion this year.

The retailer is one of hundreds to issue a rallying cry for the Chancellor to scrap a hated tax on tourists coming to the UK to buy designer goods.

Burberry bosses have been outspoken about how the UK’s absence of a VAT-free shopping scheme is holding it back, so it will be note- worthy if the company makes any further comments on how it is affecting UK sales.