Burberry is set to expand in China this year, but it's monitoring the outbreak of a deadly coronavirus that has already impacted the stocks of European luxury brands operating in the region
: Burberry shrugged off the impact of the Hong Kong protests as strong sales in China led the British luxury brand to lift its revenue forecast for 2020 with sales up 3% to $940 million in the third quarter.it expects its full year 2020 revenue to grow by a low single digit but warned that it was monitoring “daily” the spread of a pneumonia-like virus in its most important market China.
Burberry sales in Hong Kong, which used to account for 8% of sales, had dropped by half in the previous months due to protests in the former British colony. Burberry says it will continue to focus on the Chinese market this year. Its Lunar new year campaign was a hit with customers, while its A/W 2020 fashion show in Shanghai is set for April. It has also partnered with Chinese tech giant Tencent to open aThe FTSE 100 stock were down 3.71% on Wednesday, following a major sell off of shares in the luxury sector on Tuesday over concerns that the coronavirus, which has now killed nine people, would impact travel and luxury sales in China.
Star designer Riccardo Tisci’s new designs have helped the brand push upmarket and into leatherwear with sales also up in Europe, the Middle East, India and Africa but stable in the United States.: Marco Gobbetti, Burberry Group CEO, said:"This was another good quarter as new collections delivered strong growth and we continued to shift consumer perceptions of our brand and align the network to our new creative vision.
The outbreak of another coronavirus, the Severe Acute Respiratory Syndrome , in 2002-2003 slammed retailers, restaurants and hotels in the region, the. China’s influence over the growth luxury sector has exploded in the intervening 17 years.
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