StockMarketWire.com - Luxury fashion retailer Burberry warned that the coronvirus outbreak was having a material impact on its business, as it shuttered stores in China and experienced a broader downturn in global sales due to travel restrictions.

Burberry said 24 of its 64 stores in mainland China were closed, with remaining stores operating with reduced hours and seeing significant footfall declines.

Sales had consequently been impacted both in mainland China and in Hong Kong.

'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,' the company added.

Burberry noted that the emergence of the coronavirus outbreak pre-dated its most recent guidance for the year through March.

'The outbreak of the coronavirus in mainland China is having a material negative effect on luxury demand,' chief executive Marco Gobbetti 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.'



Story provided by StockMarketWire.com