19 days ago
NIKE SHUTS DOWN ABOUT HALF ITS STORES IN CHINA DUE TO CORONAVIRUS OUTBREAK
Nike Inc. announced on Tuesday that it has temporarily closed about half of Nike-owned stores in China due to the coronavirus outbreak. Further, the company said it is operating with reduced hours and experiencing lower than planned retail traffic in stores that do remain open. The company expects the situation to have a material impact on operations in China. "First and foremost, our thoughts are with the people affected and we remain focused on the health and safety of our teammates and partners," said John Donahoe, President and CEO of NIKE, Inc. "Despite this difficult situation, NIKE's long-term opportunity to continue to serve consumers in Greater China with inspiration and innovation remains exceedingly strong. At the same time, we continue to have extraordinary brand and business momentum in all other geographies." Nike’s shares closed down nearly 1% in Wednesday trading but up 21.3% over the past year. The Dow Jones Industrial Average DJIA, +1.68% has gained 15.3% over the period. Wedbush analysts estimate that the negative impact could be 2 cents per share for every week that its stores remain closed across China, for a total decline of 12 cents per share.