Burberry on Thursday warned sales could plunge as much as 80% in the remaining weeks of the financial year, as it laid bare how coronavirus is hurting luxury retailers.
The FTSE 100 fashion giant, known for its trademark trenchcoats, has around 40% of the 431 stores it operates directly currently closed. Further closures are expected in the coming days, which may affect its five standalone London shops.
Burberry said: “Following the significant escalation of governmental trading, travel and social restrictions in recent days and the inevitable impact this will have on demand, we are expecting our comparable retail store sales in the final weeks of the year to be within the range of -70% to -80%”.
It expects like for like retail store sales in the fourth quarter to March 28 to tumble 30%.
Burberry will look to renegotiate rents with landlords, as it grapples with the headwinds.
It pointed out that up until January 24, before the virus escalated, it was seeing a “positive” response to new products. Chief executive Marco Gobbetti said: “We remain confident in our strategy.” There was also some optimism with Mainland China stores reopening.
The shares lost 19.5p to 1083.5p
