Retailer Burberry said the outbreak of the coronavirus was hitting luxury demand in China and Hong Kong, both important markets for the British fashion brand, sending its shares lower for a second day in a row. “The outbreak of the coronavirus in mainland China is having a material negative effect on luxury demand,” chief executive Marco Gobbetti said. The death toll from the flu-like virus in mainland China rose to 636 as of Thursday, as the number of cases hit 31,161. Burberry, famed for its trench coats and check scarves, had already been suffering from the large demonstrations over the last seven months in Hong Kong, though mainland demand had been taking up some of the slack before the epidemic struck. China is crucial to Gobbetti’s multi-year strategy to revitalise Burberry by moving it further upmarket, driven by the creative vision of designer Riccardo Tisci.

Source: The Irish Times February 07, 2020 09:22 UTC