Burberry Group PLC - Update on the Impact of COVID-19
Update on the impact of COVID-19
"Since our February update, the material negative effect of COVID-19 on luxury demand has intensified and is now impacting the industry in all regions. Our primary concern is the global health emergency and we continue to take every precaution to help prevent the spread of the virus and ensure the safety and wellbeing of our employees, partners and customers. We are implementing mitigating actions to contain our costs and protect our financial position, underpinned by our strong balance sheet. We remain confident in our strategy and the strength of our brand and I am exceptionally proud of our teams' resilience and commitment."
Given the ongoing escalation of the COVID-19 pandemic, we wanted to update the market on the impact on our business as we approach the end of FY 2020 (28 March 2020).
As we set out in our announcement on
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%. As a result, we now expect Q4 2020 comparable retail store sales to be around -30%.
We are implementing mitigating actions to contain costs and protect our financial position, including renegotiating rents, restricting travel and reducing discretionary spending. Our primary concern is the global health emergency and we are taking appropriate measures to help prevent the spread of the virus and ensure the safety and wellbeing of our employees, partners and customers, while following government guidelines in all our markets. These include implementing home working for the majority of our office-based teams and reducing work patterns and introducing specific shift rotations for teams whose roles cannot be performed remotely as well as putting in place strict protocols for hygiene and social distancing.
We remain confident in the strength of our brand and our strategy. Until
We have significant financial headroom including liquidity of
This announcement anticipates and replaces our planned extraordinary trading update in April. Our next scheduled announcement is our Preliminary Results in
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Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements.
Notes to editors
• Burberry is a global luxury brand with a distinctly British attitude.
• Burberry is listed on the
• BURBERRY, the Equestrian Knight Device, the Burberry Check and the Thomas Burberry Monogram and Print are trademarks belonging to Burberry.
This information is provided by RNS, the news service of the
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