Falling Sterling helps Burberry offset 5 percent sales fall

According to market analysts, Burberry will be able to offset part of the decline in sales over the last quarter thanks to the devaluation of British pound prompted by the UK´s vote to leave the European Union.

Furthermore, Burberrys will manage to leverage this slide in sales with a 90 million pounds Brexit windfall brought about by the weakening pound, highlights ‘The Times’.

The quintessentially British luxury fashion brand is expected to report a 5 percent drop in quarterly like-for-like sales on Wednesday. The update echoes a identical slide in the three months to March.

In fact, Burberry is still suffering the ill effects of falling Chinese visitor numbers to Hong Kong.

However, the luxury goods retailer is expected to offset slowing sales figures with a 90 million pounds worth of a boos from the falling value of sterling. This opinion is backed by JP Morgan analysts, who expect that favourable exchange rates from the weakened pound will help the firm, which makes most of its sales abroad but incurs costs in the UK.

It is noteworthy that the pound has dropped to a 31-year low since the vote to leave the European Union, recalls ‘This is Money’.