LONDON: Burberry said on Friday (Feb 7) 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 were seeing significant declines in footfall.
READ: Citibank cancels annual investor conference in Singapore over coronavirus outbreak
READ: Coronavirus impact on financial markets and economies
“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.”
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.
BOOKMARK THIS: Our comprehensive coverage on the novel coronavirus and its developments
Download our app or subscribe to our Telegram channel for the latest updates on the novel coronavirus outbreak: https://cna.asia/telegram
