Zhang Peng | LightRocket | Getty Photographs

Gucci proprietor Kering SA has closed half of its shops in mainland China and the places which are nonetheless open are working on decreased hours, CEO Francois-Henri Pinault as the corporate warned buyers of a drop in gross sales.

“Now we have a robust drop in site visitors and in gross sales over the past 10 days,” CEO Francois-Henri Pinault informed analysts on a convention name Wednesday discussing its fourth-quarter earnings.

Previous to the outbreak, the luxury-goods maker, which additionally owns Balenciaga and different high-end manufacturers, had a robust efficiency for January partly pushed by Chinese language clients. Gross sales for the fourth quarter elevated 11% to 4.36 billion euros ($4.77 billion).

“Up to now few weeks, because the very constructive begin of the yr, our surroundings has modified considerably with the coronavirus outbreak,” Deputy CEO Jean-Francois Palus stated. “As a result of evolving nature of the scenario, it’s inconceivable at the moment to totally consider its impression on our companies and how briskly [China] will recuperate. We’re listening to numerous completely different theories on the velocity and form of the rebound, however the actuality is that it’s too early to foretell.”

The corporate didn’t give a selected estimate of the gross sales hit brought on by the virus.

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