Sportswear Giant, Nike has announced a temporary closure of half of its company-owned stores in China as a result of the coronavirus outbreak.
The deadly coronavirus still remains to make headlines across the world, and in China, the outbreak has led to the shutdown of transportation, retail stores, and other businesses.
Nike said its remaining open stores are operating with reduced hours and have experienced lower than expected retail traffic.
In a statement, the company said “NIKE, Inc. is prioritizing the health and safety of our teammates and partners, in cooperation with local authorities. In the short term, we expect the situation to have a material impact on our operations in Greater China”.
It’s unclear how the outbreak might affect Nike’s sourcing and production in the country. Nike manufactures about 23% of its footwear and 27% of its apparel 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.”
The company will provide an update on the financial impact when it reports quarterly results, which are due in March.
Other major companies that have temporarily shut down down their stores in China include Apple, Starbucks, and Ikea.
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