Burberry Says Year-End Results Will Be Impacted by Coronavirus

LONDON – Burberry isn’t immune to the coronavirus in the all-important Chinese market. While Burberry did not issue a sales and profit warning on Friday, it did say that retail sales have been impacted by store closures in Mainland China and Hong Kong. Currently 24 of its 64 stores in Mainland China are closed, with remaining stores operating with reduced hours “and seeing significant footfall declines.” The company added that the spending patterns of Chinese customers in Europe and other tourist destinations have been less impacted to date, “but given widening travel restrictions, we anticipate these to worsen over the coming weeks.” Burberry did not comment on whether or not it was still planning to stage its fall-winter 2020 fashion show in Shanghai in April. Chinese customers at home and abroad account for just under half of the company’s sales. “The outbreak of the coronavirus in Mainland China is having a material negative effect on luxury demand. While we cannot currently predict how long this situation will last, we remain confident in our strategy,” said Marco Gobbetti, chief executive officer. “In the meantime, we are taking mitigating actions and every precaution to help ensure the safety and well-being of our employees. We are extremely grateful for

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