2/7/2020, 9:08 AM (Source: TeleTrader)
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Burberry warns its business will suffer over coronavirus

Burberry warned on Friday that its demand in China slumped in January as a result of the coronavirus outbreak which forced it to shut 24 of its 64 stores in the country. The damage on demand is "material," according to the luxury brand and is affecting both mainland China and Hong Kong.

In a statement, Burberry said: "We are taking mitigating actions but the benefit in the current year will be limited given the proximity to our March year-end. We also intend to continue our key growth initiatives in preparation for a recovery in luxury demand. We will provide a retail trading update following our financial year-end."

In its third quarter earnings, Burberry said it is maintaining focus on Chinese consumer inspiration and announced further expansion in the Chinese market, including a social retail store in partnership with Tencent which is set to open later in the year.

Baha Breaking News (BBN) / VP