BURBY - Burberry Group plc

Other OTC - Other OTC Delayed Price. Currency in USD
26.14
-0.30 (-1.13%)
At close: 3:48PM EST
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Previous Close26.44
Open26.20
Bid0.00 x 0
Ask0.00 x 0
Day's Range26.12 - 26.34
52 Week Range21.65 - 30.91
Volume31,879
Avg. Volume38,011
Market Cap10.432B
Beta (5Y Monthly)0.58
PE Ratio (TTM)25.01
EPS (TTM)1.04
Earnings DateN/A
Forward Dividend & Yield0.30 (1.12%)
Ex-Dividend DateDec 18, 2019
1y Target EstN/A
  • Burberry: Another Century-Old Business With a Moat and Growth Opportunities
    GuruFocus.com

    Burberry: Another Century-Old Business With a Moat and Growth Opportunities

    Thanks to the lack of change, the luxury sector is full of easy-call names for long-term investors Continue reading...

  • Fashion house Chanel cancels Beijing show due to coronavirus
    Reuters

    Fashion house Chanel cancels Beijing show due to coronavirus

    Chanel has cancelled a show in China in May due to the coronavirus outbreak, the French fashion house said on Tuesday. "Considering the current situation and following the guidance of Chinese authorities, Chanel has decided to postpone its project of a replica of the Paris – 31 rue Cambon 2019/20 Métiers d’art collection in May in Beijing to a later and more appropriate moment," the statement said. Chanel was monitoring the situation closely, saying "At the foremost are the health and well-being of its teams and clients".

  • Financial Times

    Streetwear is ‘not finished’, says Burberry’s Riccardo Tisci

    As one of the headlines show of London Fashion Week, many look to Burberry for clues as to where fashion is heading next. Designer Riccardo Tisci’s SS2019 debut for the brand ushered the return of Nineties beige and the knee-length skirt. Streetwear, too, has been one of the hallmarks of the “New Burberry”, and so the absence of heritage-check puffers and logo-stamped hoodies on Monday’s catwalk was conspicuous.

  • Reuters

    Burberry's Tisci re-imagines classics in London runway show

    Riccardo Tisci drew inspiration from Burberry's design heritage by re-imagining the British label's trenchcoats and camel, black and red check at London Fashion Week on Monday. U.S. models Kendall Jenner, Bella Hadid and Gigi Hadid, and Russian Irina Shayk, walked in an Autumn-Winter 2020 collection that featured the house's signature neutral tones and references to old-style English tailoring and vintage sportswear.

  • Reuters

    Ralph Lauren warns of up to $70 mln hit to Asia sales from coronavirus

    Ralph Lauren Corp said on Thursday it expects a $55 million to $70 million hit to its fourth-quarter sales in Asia from the coronavirus outbreak in China. About two-thirds of Ralph Lauren's 110 stores in China have been temporarily closed over the past week, the luxury goods maker said. Supply chain disruptions in China could also impact a small portion of fourth-quarter orders globally, Ralph Lauren said.

  • Should You Be Excited About Burberry Group plc's (LON:BRBY) 28% Return On Equity?
    Simply Wall St.

    Should You Be Excited About Burberry Group plc's (LON:BRBY) 28% Return On Equity?

    While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...

  • Gucci-owner Kering warns coronavirus could hit its business this year, but ‘impossible’ to gauge any damage yet
    MarketWatch

    Gucci-owner Kering warns coronavirus could hit its business this year, but ‘impossible’ to gauge any damage yet

    Gucci-owner Kering says half of China stores shut because of coronavirus outbreak as it posted a 16.2% rise in full-year revenue.

  • Releasing Quarantined Americans; Cruise Concerns: Virus Update
    Bloomberg

    Releasing Quarantined Americans; Cruise Concerns: Virus Update

    (Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.The death toll from the coronavirus exceeded 1,000. Hubei, the province at the center of the outbreak, reported its highest number of fatalities yet and removed top officials. The disease caused by the new coronavirus has been officially named Covid-19.A first group of Americans evacuated from China are scheduled to be released from quarantine, and the U.S. State Department will allow non-essential personnel in Hong Kong to depart. A top U.S. health official raised questions about ongoing concerns of cruise ships with infections.Beijing said regions less hit by the disease should accelerate a resumption of industrial output and authorized Airbus SE to restart operations in Tianjin. The U.S. Federal Reserve singled out the crisis as among risks threatening the U.S. and world economy.Bloomberg is tracking the outbreak on the terminal and online.Key DevelopmentsChina death toll at 1,016, up by 108; confirmed cases at 42,638Hong Kong PolyU develops rapid diagnostic systemWireless event hangs by a thread as virus deters more companiesCourier services disrupted, wreaking havoc on commodities tradersWhen coronavirus hits a ship, it’s too late to batten down the hatchesJ&J Says It Will Accelerate Vaccine Work (4:34 p.m. NY)Drugmaker Johnson & Johnson will accelerate work on its attempts to develop a vaccine for the new coronavirus, expanding a collaboration with the U.S. government’s Biomedical Advanced Research and Development Authority, the company said in a statement. Under the agreement, J&J and Barda will share some R&D expenses, and J&J will will work to expand production capabilities for a potential vaccine.U.S. Raises Travel Advisory for Hong Kong (3:20 p.m. NY)The U.S. State Department raised its travel advisory for Hong Kong to level 2, which means travelers should exercise increased caution.“The Hong Kong government has reported cases of the novel coronavirus in its special administrative region, has upgraded its response level to emergency, its highest response level, and is taking other steps to manage the novel coronavirus outbreak,” the department said.Last month, the U.S. raised the advisory for mainland China to level 4, the highest designation, which means do not travel.American Airlines Extends Flight Suspensions (1 p.m. NY)American Airlines Group Inc. on Tuesday extended the suspension of U.S. flights to Shanghai and Beijing and between Los Angeles and Hong Kong through April 24.The suspension is about a month longer than planned because of an ongoing decline in demand, said the airline. The carrier also said it won’t fly between Dallas-Fort Worth and Hong Kong until at least April 24, about two months longer than it originally expected, for the same reason.U.S. Health Official Raises Concerns About Cruise Ship (12:19 p.m. NY)A top U.S. health official said that quarantining large numbers of people on cruise ships to contain cases of the coronavirus may present issues.“The increased cases count is making authorities really look critically at what is the safest thing,” said Anne Schuchat, principal deputy director of the Centers for Disease Control and Prevention, during a press event Tuesday in Washington.Several cruise ships have been quarantined or turned away from ports because of concerns about infections on board. Some older cruise passengers can be at particular risk of complications from the virus.First Quarantined American Evacuees to Be Released (10:30 a.m. NY)A first group of Americans who were quarantined after being repatriated from the center of the outbreak in China are expected to be released Tuesday, Anne Schuchat, principal deputy director of the U.S. Centers for Disease Control and Prevention, said at a press conference Tuesday.Health workers are doing final checks to make sure none of the people are showing symptoms.The U.S. has been putting those evaluated from the outbreak into quarantines of at least 14 days, part of a broad set of measures to stop potential spread of the virus by returning Americans and their family members. A first group of about 200 Americans was repatriated last month, and the U.S. has been running quarantine centers at military bases.State Department to Let Some Hong Kong Staff Depart (10:25 a.m. NY)The U.S. State Department will let non-essential diplomats and their families based in Hong Kong leave if they want to, amid growing fears about the spread of the coronavirus there.Hong Kong consular staff and their families aren’t required to leave, a State Department spokesperson said Tuesday, speaking on condition of anonymity. The move is being taken out of an abundance of caution and the consulate will remain open, the person said. Nevertheless, the decision is likely to be closely reviewed by other countries and businesses as they plan how to gauge their response to the outbreak.The State Department move comes as the number of cases in Hong Kong continues to grow, with at least 49 confirmed infections and one death. The U.S. shut its consulate in Wuhan, China, the center of the outbreak, and has allowed diplomats and family members to leave other outposts in China if they wish.Disease Is Officially Named Covid-19, WHO Says (10:10 a.m. NY)The disease cause by the new coronavirus that emerged in Wuhan, China, has been officially named Covid-19, the World Health Organization said at a press conference Tuesday in Geneva.The pathogen itself has gone by the designation 2019-nCoV. WHO Director-General Tedros Adhanom Ghebreyesus said that naming the disease it causes was important, and that the group had been conscious about not picking a name that could be inaccurate or stigmatizing.Powell Says Risks to Outlook Remain as Fed Monitors Coronavirus (8:30 a.m. NY)Federal Reserve Chairman Jerome Powell said the bank is monitoring the fallout from the deadly outbreak, “which could lead to disruptions in China that spill over to the rest of the global economy.“Airbus to Restart Production in Tianjin (7:50 a.m. NY)European planemaker says it has been authorized by Chinese authorities to restart operations at its final-assembly line in Tianjin. The company said this will allow it to gradually increase production “while implementing all required health and safety measures for Airbus employees.”Airbus had said Wednesday the assembly line was closed following government advice. The Tianjin plant produces about six narrow-body aircraft per month, or about 10% of Airbus’s total narrow-body output.Under Armour, Moncler Warn on Coronavirus Impact (7:27 a.m. NY)Moncler, the Italian maker of down jackets, and Under Armour became the latest companies to feel the effects of the coronavirus, echoing comments from Canada Goose Holdings Inc. and Burberry Group Plc.Milan-based Moncler said it has taken “significant and urgent” measures to deal with the epidemic -- including postponing some projects and investments -- but warned it was difficult to forecast the effects on 2020 results.Under Armour said the virus would lead to $50 million to $60 million in lost sales in the first quarter of 2020 and warned of a larger impact beyond the period.H.K. PolyU Develops Rapid Diagnostic System (6:17 p.m. HK)The system can identify 30 to 40 pathogens including the novel coronavirus, severe acute respiratory syndrome and Middle East respiratory syndrome in one single test and in about an hour, the Hong Kong Polytechnic University said.China Lets Local Governments Sell More Debt Early (6:08 p.m. HK)China will allow local governments to sell another 848 billion yuan ($122 billion) of debt before March, as authorities seek to offset the economic shock of the coronavirus.The new quota includes 558 billion yuan of local government debt as well as 290 billion yuan of so-called special debt, according to a Ministry of Finance statement Tuesday. The latter is mainly used to finance local infrastructure projects like highways and health facilities.The second batch of early-approved local debt quota by the Chinese authorities indicates a strong government intention to accelerate the recovery of economic activity amid the coronavirus. We now see a higher chance of the overall fiscal deficit widening while more stimulus measures get launched to cushion the impact.\-- David Qu and Chang Shu, Bloomberg Economics; Click here to view the researchChina May Delay U.S. Farm Purchase Target (5:23 p.m. HK)The coronavirus outbreak may delay the implementation of U.S. farm good purchases as part of the phase one trade deal, but they will likely be fulfilled by the end of the year, according to China’s agriculture ministry outlook committee.Two Japan Evacuees Get Virus After First Testing Negative (5:12 p.m. HK)Two Japanese men who were evacuated from Wuhan late last month have tested positive for the novel coronavirus after initially being cleared of the deadly disease, the health ministry said.The cases bring total infections in Japan to 28, excluding 135 on a cruise ship under quarantine in Yokohama. Both men had tested negative on Jan. 30 after they returned from the Chinese city on a government-chartered flight.China Urges Farmers to Wear Masks While Planting (5:11 p.m. HK)China is asking its farmers to wear face masks to prevent the spread of the virus while urging them not to miss the spring planting season.The agriculture ministry issued a notice on Monday advising farmers to wash hands and wear masks, but still prepare for planting. It also asked local villages not to block roads to ensure the timely arrival and transport of seeds, pesticides and other farming equipment.Indonesia’s Jokowi Orders Spending Spree (4:50 p.m. HK)Indonesian President Joko Widodo has called for fiscal stimulus to be accelerated in a bid to shield Southeast Asia’s biggest economy from the coronavirus crisis.While Indonesia is yet to record a single case of the deadly virus, officials have become increasingly worried about the economic impact. China is Indonesia’s biggest trading partner and its top export destination.China Starts Handing Out ‘Force Majeure’ Slips (4:49 p.m. HK)Huida Manufacturing (Huzhou) Co. became one of the earliest known companies to obtain a “force majeure” certificate in China that may help it avoid penalties for breaching contractual obligations.The China Council for the Promotion of International Trade said it issued the certificate on Feb. 2. More companies have since received the document.China Pushes Big Companies to Meet Output Targets (4:15 p.m. HK)China is urging the nation’s biggest companies to meet production targets despite the challenges presented by the coronavirus epidemic, as firms begin to restart plants that have been idled for weeks.Regions that are less hit should accelerate the resumption of production, according to a nationally televised conference held by Ministry of Industry and Information Technology. The ministry said it was “very urgent” to resume industrial production and stabilize expectations.The impact to China’s economy from the coronavirus will be short-term and won’t derail its longer term improvement, CCTV reported Monday, citing President Xi Jinping. China will strengthen controls on economic operations and monitor employment to avoid large-scale layoffs, it said.Xi told local officials during a Feb. 3 meeting of the Politburo’s Standing Committee that efforts to contain the virus had gone too far and threatened its economy, Reuters reported Tuesday, citing unidentified people familiar with the meeting.Dalio Says Market Impact Is ‘Exaggerated’ (3:57 p.m. HK)Investor concerns over the pandemic “probably had a bit of an exaggerated effect on the pricing of assets because of the temporary nature of that, so I would expect more of a rebound,” Ray Dalio, the billionaire founder of Bridgewater Associates, said at a conference in Abu Dhabi. “It most likely will be something that in another year or two will be well beyond what everyone will be talking about.”Virus Likely Cost China’s Retail and Food Sectors Billions (3:54 p.m. HK)The outbreak of coronavirus may have cost China’s retail and food service sectors billions of dollars in sales during the Lunar New Year week, according to a leading food and agricultural bank.Revenue lost in both retail and food services during the Lunar New Year week could range from 20% to 80%, representing a fall of $31 billion to $124 billion, as major chains shuttered stores across the country, Rabobank said in a report.Chipmakers Skip Premier Mobile Show on Virus Fears (3:27 p.m. HK)Intel Corp. and MediaTek Inc. have pulled out of Mobile World Congress, joining a list of marquee names skipping the wireless industry’s biggest annual showcase because of concerns about the spread of the novel coronavirus.Fellow tech giants Ericsson AB, Sony Corp. and LG Electronics Inc. have already withdrawn from the conference scheduled to kick off in Barcelona’s Fira Gran Via on Feb. 24. The growing number of cancellations has called into question an event at which smartphone and networking companies from Huawei Technologies Co. to Samsung Electronics Co. show off their wares and launch new products.The GSMA, which organizes the gathering, said it’s going ahead irrespective of the cancellations, though it’s requiring attendees to prove they’ve not set foot in mainland China in the two weeks prior to showing up.China Stats Bureau to Survey Economic Impact (3:23 p.m. HK)China’s National Bureau of Statistics will conduct a special survey on the economy amid the coronavirus epidemic and analyze the outbreak’s impact, according to a statement. The bureau will use data from the survey to advise the government on the resumption of production as well as the success of coronavirus control efforts.South Korea Advises Avoiding Japan, Singapore (2:48 p.m. HK)South Korea’s health ministry advised citizens to minimize travel to countries with confirmed cases of novel coronavirus, including Singapore, Japan, Malaysia, Vietnam, Thailand and Taiwan, according to a ministry statement. South Korea will strengthen quarantine screening on entrants from Hong Kong and Macau.China Home Sales Plunge Due to Virus (1:29 p.m. HK)Home sales in China have been dealt a huge blow by the spreading coronavirus, with figures showing transactions plunged in the first week of February. New apartment sales dropped 90% from the same period of 2019, according to preliminary data on 36 cities compiled by China Merchants Securities Co. Sales of existing homes plummeted 91% in eight cities where data is available.CDC Confirms 13th Case in the U.S. (11:38 a.m. HK)The Centers for Disease Control and Prevention confirmed another case of coronavirus in California, bringing the number in the U.S. to 13.The latest patient is in San Diego, and was among citizens evacuated from Wuhan to the U.S. and under quarantine. The CDC said it is conducting an investigation to determine the patient’s contacts and assess if they had high risk exposure.Hong Kong Won’t Enact Mask Laws (11:12 a.m. HK)Hong Kong authorities have no plans to enact laws regulating the city’s supply of surgical masks, Chief Executive Carrie Lam told reporters at a weekly briefing.Lam has faced criticism from the public in recent days as a mask shortage sent people scrambling to form long lines at pharmacies, while residents distrustful of her administration after months of pro-democracy protests staged a run on toilet paper. She urged Hong Kongers to reduce their number of social interactions as the city works to ward off a wider outbreak.Lam said the government wasn’t calling for compulsory closures, “because Hong Kong is a free society” and business operators were already taking strong precautionary measures.Singapore Sees Up to 30% Drop in Tourism (10:32 a.m. HK)Singapore could see a 25% to 30% decline in tourist arrivals and spending this year because of the coronavirus outbreak, as the industry braces for a worse impact than the 2003 SARS pandemic, the city’s tourism chief said.The city-state is losing about 18,000 to 20,000 tourists a day, and the figures could plummet further if the situation persists for longer, Keith Tan, chief executive of Singapore Tourism Board, said in an interview with Bloomberg TV.China accounts for about 20% of Singapore’s tourism intake, the biggest source of visitors ahead of Indonesia and India. China’s ban on outbound tour groups and Singapore’s move to bar Chinese nationals from entering has led to an “evaporation” of a key source of revenue, Tan said.China’s Hubei Province Removes Top Health Officials (9:04 a.m. HK)China’s Hubei province at the center of the virus outbreak has removed health commission head Liu Yingzi and party chief Zhang Jin from their posts, state-run CCTV reported.Criticism has mounted over China’s transparency and speed in handling the epidemic. The government’s struggle to stem the outbreak has fueled concerns about President Xi Jinping’s efforts to centralize power since taking office, with officials pointing fingers over who’s to blame for the spread of the illness.The death last week of a 34-year-old doctor, Li Wenliang, who was sanctioned by local authorities after warning about the disease, unleashed a torrent of grief and anger on social media.Thailand Says Ship Won’t Be Allowed to Disembark (8:56 a.m. HK)Passengers from a ship that has been blocked from other ports due to virus concerns won’t be given permission to disembark in Thailand. The Westerdam cruise ship, operated by Carnival Corp.’s Holland America, has been refused entry by a number of nations over fears that passengers may be carrying the coronavirus.The ship departed Hong Kong on Feb. 1 with 1,455 passengers and 802 crew. It is set to arrive at a port near Bangkok on Thursday, and checks with health authorities indicate there is “no reason to believe there are any cases of coronavirus on board the ship,” Holland America said in a statement Monday.China Death Toll at 1,016 (8:17 a.m. HK)The death toll in China from the coronavirus rose to 1,016, with the addition of 108 fatalities for Feb. 10, according to the National Health Commission. Hubei, the province at the center of the outbreak, reported 103 more deaths, its highest daily count so far.While the total confirmed cases in mainland China climbed to 42,638, Hubei reported 2,097 new infections, the smallest daily increase since Feb. 1.Two additional deaths have occurred outside of mainland China: one in Hong Kong and the other in the Philippines.(An earlier update was corrected to clarify that new name is for the disease, not the virus, in the item from 10:10 a.m. NY time)\--With assistance from Isabel Reynolds, Dominic Lau, Simon Lee, Cecilia Yap, Josh Wingrove, Karen Leigh, Nicolas Parasie, Ainslie Chandler, Ian King, Stephen Tan, John Lauerman and Nick Wadhams.To contact Bloomberg News staff for this story: Michelle Fay Cortez in Minneapolis at mcortez@bloomberg.net;Robert Langreth in New York at rlangreth@bloomberg.net;Li Liu in Beijing at lliu255@bloomberg.net;Drew Armstrong in New York at darmstrong17@bloomberg.netTo contact the editors responsible for this story: Rachel Chang at wchang98@bloomberg.net, ;Drew Armstrong at darmstrong17@bloomberg.net, Jeff Sutherland, Mark SchoifetFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Morgan Stanley Foresees Potential 5% Dip in Burberry 2019-20 Earnings
    WWD

    Morgan Stanley Foresees Potential 5% Dip in Burberry 2019-20 Earnings

    LONDON — Burberry stopped short of issuing a sales and profit warning last Friday, but now Morgan Stanley has done it for them.On Tuesday the bank wrote a research note that Burberry’s comments about the impact of the coronavirus “might imply” a downgrade to  2019-20 earnings in the region of 5 percent.The bank pointed out that Burberry is the soft luxury company with the highest retail sales exposure to Chinese nationals, and was the first of its peers to issue an official warning about the material impact of the coronavirus on its operations in mainland China and Hong Kong.Some 40 percent of Burberry’s sales come from Chinese customers buying both at home and abroad.As reported on Feb. 7 Burberry said 24 of its 64 stores in mainland China were closed, with the remainder operating with reduced hours and “seeing significant footfall declines.”Burberry added that the spending patterns of Chinese customers in Europe and other tourist destinations have been less impacted to date, “but given widening travel restrictions, we anticipate these to worsen over the coming weeks.”Morgan Stanley is assuming the ongoing disruption will cause a 50 percent to 60 percent drop in Burberry’s sales to Chinese nationals over the coming two months. (Burberry's fiscal year ends on March 31.)The bank said the sales drop would result in an approximate 3 percent reduction to its own full-year sales estimates for the brand. Those figures do not take into account Burberry’s wholesale business.It added that Burberry's operating profit could see up to a 10 percent drop in the second half of the year, implying "a mid-single-digit downgrade to FY20 earnings," which is how it got to the 5 percent.Morgan Stanley said it would expect Burberry to recover part of that lost sales growth in fiscal 2020-21, "assuming the impact from the outbreak is temporary, and the situation normalizes by April.”The bank was quick to add that should the drop in sales be more severe than its 50 percent to 60 percent assumption, or should the impact on sales last longer than just two months, “earnings could see a more meaningful cut.”It also said that with regard to the impact of the virus, Burberry stands apart from its peers.“While this upcoming headwind was largely expected by the market, particularly after similar warnings from other brands (such as Nike and Pandora), interestingly the luxury sector has so far proved to be particularly resilient from a share price performance perspective," the bank wrote. "Investors are seemingly looking past these imminent downgrades, which are not expected to affect the solid, underlying, structural growth drivers of the sector."Given Burberry's ongoing turnaround, the bank warned that the British brand might be seen by the market as slightly more vulnerable compared to other more established companies such as LVMH Moët Hennessy Louis Vuitton, Hermès and Kering, particularly given that the virus outbreak will delay the inflection point in Burberry's sales and profits growth expected over the coming couple of quarters. More from WWD * Burberry Says Year-end Results Will Be Impacted by Coronavirus * Burberry Defiant in Face of Hong Kong Slowdown, Macro Challenges * More Tisci Products Nudge Burberry Retail Revenues Up 1% in Q3

  • Coronavirus update: Business impact widens as China fights to get infections under control
    Yahoo Finance

    Coronavirus update: Business impact widens as China fights to get infections under control

    China’s deadly coronavirus outbreak continues to threaten multi-national companies, as a range of businesses from leisure to retail suffer from the outbreak’s after-effects.

  • There’s a Lesson for Luxury in the Coronavirus Crisis
    Bloomberg

    There’s a Lesson for Luxury in the Coronavirus Crisis

    (Bloomberg Opinion) -- With the death toll from the coronavirus rising, the fate of high-end handbag sales still seems of minor consequence. But the $300 billion luxury industry’s over-dependence on Chinese spending was underlined again on Friday when British fashion house Burberry  Group Plc said it could no longer stand by its previous financial forecast because of the spread of the illness.Just two weeks ago, the company shrugged off disruption in Hong Kong to lift its outlook for sales growth excluding currency movements to a percentage in the low single digits, while anticipating that the operating margin would be broadly stable in the year to March 2020. Analysts at Morgan Stanley said Friday’s warning could imply a 5% cut to 2020 earnings.Burberry is particularly exposed to the epidemic. It generates about 40% of its sales from Chinese consumers at home and abroad. That’s above the 35% for the industry as a whole, according to Bain & Co. and Altagamma. So shutting some shops on the mainland and reducing hours at others has an out-sized effect.It’s too early to know what the end result will be for Burberry and the industry as a whole, but one key lesson is coming into sharp relief: While Chinese shoppers are a powerful force for the industry, no brand should neglect their customers closer to home, or stop trying to drum up demand in other corners of the world. When the Chinese market slumped in 2015 and 2016 because of a government crackdown on extravagance and gyrating stock markets, luxury houses all pivoted toward shoppers in Europe and the U.S. They have lost sight of the need to foster these markets since.For Burberry, it’s a particularly sensitive time to face such uncertainty in its biggest market. The group is in the midst of trying to revive its brand, best known for its black, white, tan and red check. While new iterations, such as the TB Monogram, are gaining traction, Burberry is having to prioritize. It’s now unclear whether a fashion show in Shanghai in April, will go ahead. The first Chinese showcase under new designer Riccardo Tisci will have specially created merchandise, clearly a way to build Burberry’s profile amid its rejuvenation efforts.Given these characteristics — high Chinese exposure plus a turnaround strategy — Prada SpA also looks to be at risk, and the Italian maker of the iconic nylon bag has already closed some stores in mainland China and Macau. The list of other luxury companies that are very dependent on China and Hong Kong is long. Swatch Group AG and Richemont are the most exposed, according to analysts at Bernstein. And Gucci, which accounts for 60% of French parent Kering SA’s sales and 80% of its operating profit, has been a hit with Chinese shoppers over the past three years. Anyone who has witnessed the proliferation of Gucci T-shirts, not all the real thing, in cities from Shanghai to Beijing would attest to its popularity.By contrast, Bernard Arnault’s LVMH looks to be better prepared to handle such a shock. With brands including Moet & Chandon champagne, pop star Rihanna’s beauty line and soon Tiffany & Co. jewelry, it has broad diversification by both geography and product range. Last year, for example, 24% of its sales from the U.S.But given the whole industry’s reliance on Chinese big spenders, no luxury or consumer brand with exposure to the them, wherever they shop, will be immune. Burberry said spending in Europe and other tourist destinations was less affected by the outbreak, but it expected conditions here to worsen too. This week, Coach owner Tapestry Inc., Michael Kors and Versace parent Capri Holdings Ltd. and Estee Lauder Cos. all lowered earnings guidance, citing the virus. Even luxury parka maker Canada Goose Holdings Inc., which has a strong following in the U.S. and Europe, has felt the impact of the outbreak. On Friday it lowered its full-year sales and profit guidance.Global luxury sales could expand by just 1% this year, according to analysts at Jefferies, after what they now expect to be a brutal 20% decline in Chinese demand in the first half. Before the outbreak, they were expecting the industry’s sales to grow by 5% in 2020.  While luxury shares have fallen over the past three weeks, valuations remain close to 10-year highs. As I have noted, the stocks have proved remarkably resilient in the face of everything from trade skirmishes to protests in Hong Kong.Burberry’s warning is a stark reminder that that could be about to change.To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Barrons.com

    Burberry Stock Slips as Luxury Brand Warns Coronavirus is Hitting Sales

    Burberry shares fell on Friday as the global luxury brand warned the spreading coronavirus was hurting sales.

  • Reuters

    Sparkle fades as coronavirus risks wiping out luxury goods growth

    The luxury goods industry normally relishes the spotlight, but in the case of China's coronavirus it is rueing being one of the most globally exposed sectors to an epidemic that risks all-but wiping out its sales growth this year. Brands from Burberry to Estee Lauder are shutting stores and cutting profit forecasts as business in the industry's biggest market has virtually ground to a halt.

  • Burberry shares drop in London as luxury-goods group warns of coronavirus fallout
    MarketWatch

    Burberry shares drop in London as luxury-goods group warns of coronavirus fallout

    Burberry was among the losing shares in London, as the luxury-goods maker confirmed what investors had been suspecting - that the spreading coronavirus was hitting sales in the region.

  • Reuters

    European shares pause after record highs as virus fears grip

    European shares slipped slightly from all-time highs on Friday, as the rising death toll from the coronavirus outbreak and the pace of the spreading infection dulled sentiment. The pan-European stocks benchmark STOXX 600 fell 0.2% at 0805 GMT as the number of deaths from the flu-like virus climbed to 636 and confirmed cases of infection rose to 31,161 in China. China-exposed sectors such as basic materials, luxury and auto stocks, which have seesawed over the past two weeks on virus fears, were the biggest decliners on the day.

  • Financial Times

    Burberry says coronavirus impact ‘worse than HK protests’

    The company, which derives about two-fifths of its revenue from Chinese consumers, said 24 out of its 64 stores in mainland China were closed and the remainder were operating on reduced hours. Footfall was down by up to 80 per cent at the stores which remain open as consumers stayed in their homes, with a similar impact felt in Hong Kong. on arrivals from the mainland, though that fell short of local demands for the border to be closed entirely.

  • Burberry Says Year-end Results Will Be Impacted by Coronavirus
    WWD

    Burberry Says Year-end Results Will Be Impacted by Coronavirus

    LONDON — Burberry is the latest fashion brand to be hit by the coronavirus in the all-important Chinese market.While Burberry did not issue a sales and profit warning on Friday, it did say that retail sales have been impacted by store closures in mainland China and Hong Kong.Currently 24 of its 64 stores in mainland China are closed, with remaining stores operating with reduced hours “and seeing significant footfall declines.”The company added that the spending patterns of Chinese customers in Europe and other tourist destinations have been less impacted to date, “but given widening travel restrictions, we anticipate these to worsen over the coming weeks.”The news sent shares down 1.43 percent to 19.88 pounds in late-morning trading on the London Stock Exchange. The share price recovered during the course of the day, closing down 0.1 percent at 20.15 pounds.Earlier this week, Capri Holdings Ltd., parent of Michael Kors, Versace and Jimmy Choo, warned that the ongoing coronavirus crisis will have a severe impact on its results in the next quarter — and potentially even a greater one depending on how long the health emergency lasts. The company said it expects the epidemic to reduce revenues by about $100 million in the fourth quarter. Burberry did not comment on whether or not it was still planning to stage its fall 2020 fashion show in Shanghai in April. Spend by Chinese consumers globally generates 40 percent of Burberry’s sales."The outbreak of the coronavirus in mainland China is having a material negative effect on luxury demand. While we cannot currently predict how long this situation will last, we remain confident in our strategy,” said Marco Gobbetti, chief executive officer.“In the meantime, we are taking mitigating actions and every precaution to help ensure the safety and well-being of our employees. We are extremely grateful for the incredible effort of our teams and our immediate thoughts are with the people directly impacted by this global health emergency," he added.The company said its most recent guidance for the fiscal year ended March 2020 predates the impact of the coronavirus outbreak and the company wanted to update the market.Burberry clarified that the “mitigating actions” it is taking will have a “limited” impact, given the proximity to its fiscal year-end on March 31, when it will provide a retail trading update."We also intend to continue our key growth initiatives in preparation for a recovery in luxury demand," it said. “We remain confident in our strategy and are very pleased with the positive response to our brand repositioning and new product. We will continue to focus on newness and fashion, and on inspiring and engaging our customers globally. We fully support the efforts the Chinese government is taking to contain the virus and we are working in close conjunction with local authorities and partners.”Burberry has already been suffering in Hong Kong: Last month, in its third-quarter trading update, it said Hong Kong, which generated 8 percent of Burberry’s sales last year, contributed just 4 percent in the third quarter due to a decline in mainland Chinese tourists and temporary store closures from the ongoing protests.At the time, despite the falloff in Hong Kong and the rise of the coronavirus in mainland China, Burberry had raised its revenue guidance, saying it expected full-year revenues to grow by a low single-digit percentage at constant exchange, compared to previous guidance of "broadly stable."It expected adjusted operating margin to remain broadly stable at constant exchange, despite the impact of disruptions in Hong Kong. For the full fiscal year, cumulative cost savings are set to be 125 million pounds, ahead of the 120 million pounds originally forecast.More from WWD * Burberry Defiant in Face of Hong Kong Slowdown, Macro Challenges * More Tisci Products Nudge Burberry Retail Revenues Up 1% in Q3 * Wuhan Virus Spooks Global Stock Market, Luxury Shares

  • Burberry warns of ‘material’ hit on demand from coronavirus
    MarketWatch

    Burberry warns of ‘material’ hit on demand from coronavirus

    The British luxury group said 24 out of its 64 stores in mainland China are closed, with the remaining operating with reducing hours and experiencing significant footfall declines.

  • Billionaire Bags a Bling Bargain
    Bloomberg

    Billionaire Bags a Bling Bargain

    (Bloomberg Opinion) -- Maverick retailer Mike Ashley likes a flutter at the casino. With his punt on a stake in upmarket handbag maker Mulberry Group Plc, the British billionaire can’t lose.Ashley’s Frasers Group Plc, formerly Sports Direct, said late Monday that it had acquired a 12.5% interest in Mulberry, maker of the iconic Bayswater bag. Ashley, who owns 63% of Frasers, has long dabbled with investments in rivals. Some, such as a holding in JD Sports Fashion Plc, paid off handsomely. But a 30% stake in Debenhams Plc was wiped out when the U.K. department store chain was taken over by its lenders last year.The interest in Mulberry has all the hallmarks of a winner. First, Ashley has likely picked it up on the cheap. Frasers did not disclose the cost. But at Monday’s close, the stake would be worth about 19 million pounds ($24.7 million).Shares in Mulberry have never really recovered from a botched strategy around five years ago, when Bruno Guillon, a former Hermes manager who was chief executive officer at the time, tried to take the leather goods and apparel company upmarket, alienating many of its core customers. New CEO Thierry Andretta and designer Johnny Coca, who joined from Celine, have since returned the brand to its accessible luxury heartland. But the shares remain about 85% off of their 2012 peak.Second, there’s clear strategic logic for Ashley to work more closely with Mulberry. The idea of transforming House of Fraser into the “Harrods of the high street” has been widely mocked because of the department store’s poor performance following its purchase in August 2018. But Ashley clearly wants to take the chain more upmarket. It’s likely to end up as a smaller, more high quality estate.Mulberry is currently in 19 House of Fraser stores, where it trades well. It is also available at Flannels, Ashley’s boutique that sells the likes of Canada Goose and Balenciaga, which is still flying.But there is another reason why Ashley’s interest in Mulberry might pay off. The quintessentially British brand has long been seen as a takeover target. Consolidation in luxury is intensifying, with LVMH’s $16.5 billion purchase of Tiffany & Co and speculation swirling around Moncler SpA and Prada SpA.  While it can’t be ruled out that Ashley will lift his interest further, a big luxury group could also make a move for Mulberry.It is tightly held, so any predator would have to convince the Ong family, which owns 56%, to sell. That may not be easy given that the value of its stake has fallen over recent years. But it may be worth trying given that quality assets are rare, especially those without a big stake held by the families that founded the companies. Longer term, there’s also the possibility that Burberry Group Plc, if its turnaround works, could be interested as part of any future efforts to turn itself into a British luxury conglomerate.In the event of any approach, Ashley not only stands to gain financially, but secures a seat at the table when it comes to this strategically important brand.Conversely, there’s nothing to stop Ashley filling his luxury shopping bag elsewhere. For example Burberry, still in the midst of its turnaround right now, commands a large selling area in Flannels’ new flagship store on Oxford Street for its street wear and rejunvenated accessories.Mulberry might not be this billionaire’s last bling bet. To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Luxury outlet visited by millions of Chinese tourists faces coronavirus impact
    MarketWatch

    Luxury outlet visited by millions of Chinese tourists faces coronavirus impact

    Every year millions of Chinese consumers fly into London and board a train to the small Oxfordshire town of Bicester.

  • Reuters

    RPT-GRAPHIC-Why the 'devil' coronavirus has hit European stocks hard

    A whopping $200 billion was wiped from European stocks at the start of this week as the deadly coronavirus prompted investors to cut back exposure to companies with a strong presence in China, the world's fastest-growing consumer market. Hundreds of millions of people have been preparing to travel for the Chinese holidays, stoking concerns infection rates may accelerate during the period - which is also a peak retail season in China and overseas. The virus - which Chinese President Xi Jinping has described as a "devil" - has had a bigger impact on European companies than their U.S. peers due to their high revenue exposure to China.

  • Reuters

    GRAPHIC-Why the 'devil' coronavirus has hit European stocks hard

    A whopping $200 billion was wiped from European stocks at the start of this week as the deadly coronavirus prompted investors to cut back exposure to companies with a strong presence in China, the world's fastest-growing consumer market. Hundreds of millions of people have been preparing to travel for the Chinese holidays, stoking concerns infection rates may accelerate during the period - which is also a peak retail season in China and overseas. The virus - which Chinese President Xi Jinping has described as a "devil" - has had a bigger impact on European companies than their U.S. peers due to their high revenue exposure to China.

  • MarketWatch

    British stocks inch higher after previous day’s hammering

    U.K. stocks inched higher on Tuesday as traders waited for more news on the deadly coronavirus outbreak before pushing in either direction.

  • MarketWatch

    European stocks trade around seven-week lows as coronavirus fears continue

    EUROPE MARKETS European stocks were trading around seven-week lows on Tuesday, as concerns about the spreading coronavirus continue to rattle markets. After ending Monday with the biggest one-day drop in nearly four months, the Stoxx Europe 600 (XX:SXXP) fell 0.