Burberry said it expected sales at comparable retail stores in the final weeks of its financial year to 28 March to be down between 70% and 80%, and as a result it expected overall fourth quarter sales to be 30% lower.

The forecast for March showed that the impact of coronavirus was intensifying, with sales dropping off further from a level of being down 40% to 50% over the last six weeks.

The company, which has a large manufacturing base in West Yorkshire as well as business functions in Leeds and is famed for its trench coats and check scarves, did not provide profit guidance, but said it remained confident in its strategy and was ready to respond to any recovery in luxury demand.

It said it had £600 million of cash and a £300 million revolving credit facility, and was working to cut costs to help maintain a strong financial position.

“We are implementing mitigating actions to contain costs and protect our financial position, including renegotiating rents, restricting travel and reducing discretionary spending,” Burberry said in a statement.

Burberry had in February already warned about the impact of coronavirus on its business, as Chinese spending globally accounts for 40% of its retail sales, and closed shops in China at that time plus fewer Chinese tourists abroad hit sales.

Trading in China has started to improve in recent weeks, Burberry said, as its shops there had started to reopen.

Coronavirus sees Burberry report sales decline of up to 80 per cent