The British luxury brand, Burberry, has suffered enormous losses due to the global pandemic and consequently, the brand announced the plans to skip dividend payment to its shareholders.
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The brand reportedly saw a 27 per cent slump in sales for Q4 as almost 60 per cent of its stores across the globe remained closed during the month of March.
The brand also received mediocre response after some of its Chinese stores reopened following 3 months of shutdown.
Burberry considers China as one of their biggest markets after Europe; however, the lacklustre performance has forced the brand to take strong financial steps in order to survive during such troubled times.
Burberry is relying heavily on the digital sales as stores continue to see less footfall. The brand had borrowed around £300 million from the business support plan which was backed by the UK Government.
The brand expects to save around £120 million by skipping the dividend payment.
Luxury brands have been facing serious financial troubles and while some of them have started online selling, the sales are nowhere close to actual physical retail sales.