Nike says coronavirus to have 'material impact' on China operations
Nike said Tuesday it has closed about half of its stores in China and reduced hours at others due to the worsening outbreak of a new coronavirus, while warning it expects further impacts on its operations in the country.
The sports apparel and footwear giant said it is "prioritizing the health and safety of our teammates and partners, in cooperation with local authorities."
"Similar to others in the marketplace, approximately half of Nike-owned stores have been temporarily closed," while it is "experiencing lower than planned retail traffic in stores that do remain open."
"In the short term, we expect the situation to have a material impact on our operations in Greater China," the company said in a statement.
Nike CEO John Donahoe said, "Despite this difficult situation, Nike's long-term opportunity to continue to serve consumers in Greater China with inspiration and innovation remains exceedingly strong."
The company will provide an update on the financial impact when it reports quarterly results, which are due in March.