Burberry response doesn’t lift shares

FTSE 100 fashion house Burberry (LON:BRBY) watched its share price sink by 3.17% to 1,297p (as of 12:15 BST) after outlining its current position during the COVID-19 crisis. The company has not furloughed its UK staff and has converted its coat factory to make medical equipment for the time being. Senior management and the board will be taking a 20% pay cut, but lower level employees will remain on full pay.

CEO Marco Gobbetti commented: “Since the outbreak of COVID-19, our priority has been the safety and wellbeing of our employees, our customers and our communities. While we continue to take mitigating actions to contain our costs and protect our financial position, we are also committed to safeguarding jobs and supporting the relief efforts during this global health emergency. I would like to thank our teams for their continued determination and resilience as we continue Thomas Burberry’s legacy of protecting others and caring for the community“.