By Adria Calatayud
Burberry Group PLC warned Friday that sales in mainland China and Hong Kong have been hit by the coronavirus outbreak and that it anticipates a limited benefit from mitigating actions in the current year.
The British luxury group /zigman2/quotes/205386705/delayed UK:BRBY +0.12% said 24 out of its 64 stores in mainland China are closed, with the remaining operating with reducing hours and experiencing significant footfall declines.
The company said it anticipates spending patterns of Chinese customers in Europe and other tourist destinations, which have been less affected so far, to worsen over the coming weeks given widening travel restrictions.
“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,” Chief Executive Marco Gobbetti said.
Burberry said it plans to continue its growth initiatives in preparation for a recovery in luxury demand.