Burberry has announced that it will be cancelling its full-year dividend payment to shareholders due to the coronavirus. Like many other brands, Burberry saw a direct hit in sales in late January when sales in China started dipping.
By the end of March, 60 percent of Burberry stores had closed. “We have found new ways to strengthen our connection with consumers, drawing on our digital leadership…” Chief Executive Marco Gobbetti said on Friday. “It will take time to heal, but we are encouraged by our strong rebound in some parts of Asia and are well-prepared to navigate through this period.”
Chief Financial Officer Julie Brown said that Burberry has shifted inventory to online channels and to stores in Asia that have reopened, as sales in mainland China and South Korea have been improving due to an ease in lockdown restrictions.