Burberry says fast-spreading coronavirus epidemic hurting luxury demand

• Financial

On Friday, the 7th of February 2020, Burberry Group Plc., the London-based British Luxury fashion company, said in a statement that the latest coronavirus outbreak in China had begun to hit the demands of its luxury goods in Hong Kong and China, the world’s largest market for luxury goods with a market share of 35 per cent, eventually dragging down the London-based luxury fashion retailer’s shares’ prices for the second consecutive day in a row.

In point of fact, Burberry had been the latest to join a string of companies which had already warned off a catastrophe in demands, a wide range of global retailers could witness over the coming weeks, while if the Wuhan epidemic could break in to the second quarter of the year, a number of global major retailers would be facing off severe strains at their annual earnings.

Aside from that, the British luxury fashion house had also said in its Friday’s (February 7th) statement that 24 out of its 64 China outlets were already shut down, while its other stores were operating for a shorter period than usual following a steep decline in the number of shoppers.

Meanwhile, addressing to a growing uncertainty whirling around the epidemic’s economic fallout, Burberry Chief Executive, Marco Gobbetti said on Friday (February 7th), “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. ” Besides, following Burberry’s downbeat comments, shares’ prices of the British fashion industry megalith fell as much as 5.14 per cent in pre-market trading, however, had managed to wrap up the day a dime lower to £2,015.00 per share.