Burberry's Retail Sales In China To Hit As 24 Stores Closed Due To Coronavirus

Retailer Burberry Group plc (BRBY.L) announced Friday said the ongoing coronavirus outbreak will impact retail sales in both Mainland China and Hong Kong S.A.R.

In China, the company's 24 stores, out of 64 total stores, are closed at present, while the remaining stores are operating with reduced hours amid significant footfall declines.

Marco Gobbetti, Chief Executive Officer, said, "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."

Burberry noted that the spending patterns of Chinese customers in Europe and other tourist destinations have been less impacted to date. However, due to the widening travel restrictions, the company anticipates these to worsen over the coming weeks.

The company said it is taking various actions but the benefit will be limited in the current year. The company also intends to continue its key growth initiatives in preparation for a recovery in luxury demand.

The company will provide a retail trading update following financial year end.

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