- Burberry said that the coronavirus epidemic is hurting luxury demand in mainland China and Hong Kong.
- It closed nearly half of its stores in mainland China; stores that have stayed open are operating with reduced hours.
- As a result, the British luxury brand withdrew its financial guidance for the year ahead on Friday.
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Burberry said Friday that the outbreak of coronavirus in China was hurting luxury demand in the mainland and Hong Kong — both important markets for the British brand.
The luxury label said 24 of its 64 stores in mainland China were closed, with remaining stores operating with reduced hours and said they saw significant declines in footfall.
“The outbreak of the coronavirus in mainland China is having a material negative effect on luxury demand,” CEO Marco Gobbetti said.
“While we cannot currently predict how long this situation will last, we remain confident in our strategy.”
The company said spending by Chinese tourists in Europe and other destinations had been less impacted to date but given widening travel restrictions, it anticipated it would worsen over the coming weeks.
As a result, the company withdrew its financial guidance for the year ahead early Friday morning.
Read the original article on Reuters. Copyright 2020.
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