Burberry sales down 50 per cent as coronavirus spreads globally
Luxury British brand Burberry this morning warned that sales have halved as coronavirus has decimated consumer demand.
Sales have dropped between 40 per cent to 50 per cent since 24 January, as the outbreak has spread across the world, forcing Burberry to close around 40 per cent of its stores globally.
In Europe, the Middle East and Africa, more than 60 per cent of Burberry stores have been closed, and around 85 per cent were forced to shut in the Americas.
The fashion house said it expects sales to be down as much as 80 per cent over the next few weeks as governments ramp up travel and social restrictions.
Burberry said fourth quarter retail store sales are forecast to be down 30 per cent.
Burberry previously warned that February sales had been hit by store closures and a drop in demand in China, where the outbreak began. Trading in China has begun to improve and most stores have reopened.
“The material negative effect of Covid-19 on luxury demand has intensified and is now impacting the industry in all regions,” Burberry chief executive Marco Gobbetti said.
“Our primary concern is the global health emergency and we continue to take every precaution to help prevent the spread of the virus and ensure the safety and wellbeing of our employees, partners and customers.
“We are implementing mitigating actions to contain our costs and protect our financial position, underpinned by our strong balance sheet.
“We remain confident in our strategy and the strength of our brand and I am exceptionally proud of our teams’ resilience and commitment.”