Burberry says coronavirus is impacting sales in China
Luxury brand Burberry has said the coronavirus outbreak is having a negative impact on sales in China and Hong Kong.
In a statement, the company said 24 of its 64 stores in mainland China are now closed. In addition, its remaining stores are operating with reduced hours and have seen significant declines in footfall.
Spending by Chinese customers in Burberry’s stores in Europe and other tourist destinations have been less affected, but the company said this might change in the coming weeks as more countries introduce travel restrictions.
Marco Gobbetti, Burberry chief executive, said: “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 wellbeing of our employees. We are extremely grateful for the incredible effort of our teams and our immediate thoughts are with the people directly impacted by this global health emergency.”
The company also said that it is continuing to implement key growth initiatives in preparation for a recovery in demand for luxury items.
