Nike “Doesn’t Do It” After Losing $17B In Value Amid Coronavirus Outbreak
Similar to Apple, who’s currently expecting an iPhone shortage and profit loss this and next quarter, Nike is also expecting a value loss due to the coronavirus outbreak.
According to Forbes, the fashion brand was one of the first companies to release a statement pertaining to the impact of the outbreak on its business; which proved to lose over $17 billion USD in market value.
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Additionally, the sportswear giant has been forced to close nearly half of 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 more than 15% of total revenues and nearly 40% of the company’s profits in 2019.
Prior, in 2016-19, China claimed responsibility for more than a third of Nike’s global growth, garnering $2.4 billion in revenue at an 18% per annum rate. For the rest of the world, it landed at 6.5%.
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Furthermore, the country is also the company’s most profitable region for the past four years, racking up an additional $800 million toward Nike’s adjusted operating profits.