Home Business News Burberry warns on Coronavirus impact

Burberry warns on Coronavirus impact

by LLB Editor
7th Feb 20 10:04 am

Some reaction to Burberry’s revelation that the coronavirus is having an effect on its performance in China.

“Burberry has confirmed what the market has been speculating for weeks – that the coronavirus is having a negative impact on luxury goods demand in China,” says investor and stockbroker services firm AJ Bell.

“Its share price has fallen by 10% this year as it seemed highly likely that the reduction in people freely moving around China, and the shift in people’s focus to worrying about their health rather than thinking about shopping, would impact Burberry’s earnings. Asia is very important for sales of its products.

“Just over a third of its stores in Mainland China are currently closed with the rest opening for shorter hours each day and also seeing a significant drop in visitor numbers.

“Burberry is right to have withdrawn its earnings guidance given so much uncertainty on sales.”

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