SHARE OF THE WEEK: Burberry investors await China update

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

The British fashion house’s turnover increased by 10 percent in the twelve months to April 1 to £3.1 billion.

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

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

Luxury brands have benefited from surging demand for goods from Chinese customers, and shareholders hope Burberry gets a similar boost.

Shares hit an all-time high in April, but have fallen back.

Russ Mould, director of investment at AJ Bell, said: “Last year’s gains at least owe something to a reopening in China after three years of lockdowns, as it is a major consumer of luxury goods, and the recent decline may are. -related too, given that it doesn’t seem to be picking up steam as quickly as many had hoped.’

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

The retailer is one of hundreds calling on the chancellor to abolish a hated tax on tourists coming to the UK to buy designer goods.

Burberry bosses have been candid about how the UK’s lack of a VAT-free shopping program is holding it back, so it’ll be worth it if the company makes any further comments on how it’s affecting sales in the UK.