7th Feb 2020 08:02
(Alliance News) - Burberry Group PLC on Friday said the outbreak of coronavirus in China is having a negative effect on demand for its luxury goods.
The luxury fashion retailer said 24 of its 64 stores on the Chinese mainland are closed, with the remaining stores experiencing a significant decline in customer visits. Although the spending patterns of Chinese customers across Europe hasn't been affected, Burberry said it expects the situation to worsen due to widening travel restrictions.
"While we cannot currently predict how long this situation will last, we remain confident in our strategy. In the meantime, we are taking mitigating actions and every precaution to help ensure the safety and well-being of our employees," said Burberry Chief Executive Marco Gobbetti.
The company noted that the benefit of actions taken to mitigate the negative impact will be limited due to the proximity to the end of its financial year in March.
Shares in FTSE 100-listed Burberry were down 3.1% early Friday in London at 1,954.00 pence each.
By Ife Taiwo; [email protected]
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