Global sports wear giant, Nike has announced the temporary shut down of half of its stores in China because of coronavirus.
The brand has also cut down its operating hours and is facing a decline in customer traffic and purchasing activity in retail stores that are currently open. Nike expects the outbreak to have a negative material impact on its presence in China.
The coronavirus has effected a number of fashion brands in the industry so far. Recently, leading luxury outerwear brand, Canada Goose revealed the coronavirus outbreak was also having a material negative impact on its financial performance for fiscal quarter ending 29 March 2020. In addition, luxury British house Burberry has shut 24 of its 64 stores in mainland China as fears over a growing coronavirus outbreak continue to grip the country.
John Donahoe, President and CEO of Nike, Inc. said: “First and foremost, our thoughts are with the people affected and we remain focused on the health and safety of our teammates and partners. 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.”