Business
Update on the Impact of Coronavirus
Update on the Impact of Coronavirus.
About this update from Burberry Group Plc
[{"type":"text","content":"\n \nRNS Number : 2657C Burberry Group PLC 07 February 2020 \n\n7 February 2020\n \nBurberry Group plc\nUpdate on the impact of coronavirus\n\n\"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. 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.\" \nMarco Gobbetti, Chief Executive Officer\n \nOur most recent guidance for the year ended March 2020 predates the impact of the coronavirus outbreak and we wanted to update the market. \nCurrently 24 of our 64 stores in Mainland China are closed with remaining stores operating with reduced hours and seeing significant footfall declines. This is impacting retail sales in both Mainland China and Hong Kong S.A.R. 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. \nWe are taking mitigating actions but the benefit in the current year will be limited given the proximity to our March year end. We also intend to continue our key growth initiatives in preparation for a recovery in luxury demand. We will provide a retail trading update following our financial year end.\nWe remain confident in our strategy and are very pleased with the positive response to our brand repositioning and new product. We will continue to focus on newness and fashion, and on inspiring and engaging our customers globally.\nWe fully support the efforts the Chinese government is taking to contain the virus and we are working in close conjunction with local authorities and partners.\n \n \nEnquiries \n\n\n\n\nInvestors and analysts \n\n\n020 3367 4458 \n\n\n\n\nAnnabel Gleeson VP, Investor Relations \n\n\[email protected] \n\n\n\n\nMedia &nb...