Skechers, Ralph Lauren + 400 Other Companies Raise Red Flag About Coronavirus Impact
Samantha McDonald
Business Editor
More than 400 companies around the world have already seen or forecasted a negative impact on their businesses from the coronavirus outbreak.
According to data from Amenity Analytics, Columbia Sportswear Co., Skechers USA Inc., Tapestry Inc., Capri Holdings Ltd. and Ralph Lauren Corp. are among the fashion firms that have expressed concerns over the fast-spreading illness’ potential to affect business operations. The software firm tracked mentions of the public health emergency in management commentary and analysts’ questions in earnings call transcripts, finding a total of 421 companies that expect to see some impact from the coronavirus.
Simon Property Group, Canada Goose Holdings Ltd., Levi Strauss & Co., Deckers Outdoor Corp. and Hennes & Mauritz AB (or H&M) also made the list.
Travel restrictions in China have reduced tourism, production and foot traffic to store and some international brands, including Nike Inc. and Burberry Group PLC, have temporarily closed stores or reduced operating hours in heavily affected areas in China where the coronavirus originated. While some retailers have predicted lower sales that are likely to hurt their bottom lines, the extent of the impact remains unclear.
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According to a recent study by Coresight Research, which cited an early estimate from the Economist Intelligence Unit, the virus could reduce China’s 2020 gross domestic product growth by 0.5 to 1 percentage point off its baseline estimate of 5.9%, which represents a loss of roughly $7.2 billion to $14.3 billion.
As of Monday morning, the death toll from the outbreak has reached 910, with all but two of the deaths reported to have occurred in mainland China. More than 40,000 people have been infected by the coronavirus. Stocks saw little change at market open: The Dow Jones Industrial Average was up 27 points, while the S&P 500 was up 3 points and the Nasdaq Composite grew 28 points.
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