Similar to Apple, who’s currently expecting an iPhone shortage and profit loss this quarter, Nike is additionally expecting a loss thanks to the Coronavirus outbreak.
According to Forbes, the style brand was one among the primary companies to release a press release concerning the impact of the outbreak on its business; which is poised to lose over $17 billion USD in market price.
Additionally, the sportswear giant has been forced to shut nearly half its stores in China, with some still operating with reduced hours. Forbes notes that the country is the company’s fastest-growing region; accounting for quite 15% of total revenues and nearly 40% of the company’s profits in 2019.
Prior, in 2016-19, China claimed responsibility for a 3rd of Nike’s global growth, garnering $2.4 billion in revenue at 18% a year rate. For the rest of the planet, it landed at 6.5%.
Furthermore, the country is additionally the company’s most profitable region for the past four years, racking up a further $800 million toward Nike’s adjusted operating profits.