How the coronavirus knocked seven per cent off Burberry’s share price
Shares in British luxury brand Burberry continued to fall this morning on the designer’s exposure to the Chinese market, which has been hit by the outbreak of coronavirus.
The retailer’s share price is down a further three per cent to 1,939.5p this morning after closing down 4.6 per cent last night as the spread of the virus in one of Burberry’s major markets continued to spook investors.
The coronavirus death toll has reached 106, and China reported this morning that the disease has spread to Beijing. According to China’s National Health Commission, there are more than 4,515 confirmed cases in the country.
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The spread of the virus – which started in the city of Wuhan – has affected Burberry’s stock as the luxury retailer has a sizable exposure to China, and the company recently outlined plans to target further growth in the country/
In its third quarter trading update last week the company said it planned to ramp up its focus on Chinese customers by taking its runway show to Shanghai in April and developing a social retail store in Shenzhen to open next year.
Burberry also launched its first ever Lunar New Year campaign earlier this month, however the outbreak of the virus has dampened festivities – and therefore sales – this year.
Only China has reported deaths due to the coronavirus, however many other countries have identified infections.
Coronavirus cases have been recorded in Hong Kong, Thailand, the US, Australia, Singapore, Taiwan and Macau. Hong Kong this morning announced plans to block cross-border travel between the city and mainland China as it seeks to halt the spread of infection.
South Korea, Japan, Malaysia, Canada and Vietnam have also confirmed cases of coronavirus. In total, 73 people have been tested so far in the UK, but no cases have been identified.