MANILA — Sportswear giant Nike is feeling the effects of the coronavirus on its sales, Forbes reported.
Nike’s valuation was slashed by $17 billion after temporarily closing approximately half of its company-owned stores in Greater China.
Additionally, there is also reportedly a significant drop in retail store traffic in the country because of the outbreak.
China, which currently has around 35,000 active cases of coronoavirus in the country, is one of the most important geographic regions for Nike.
According to Forbes, China makes more than 15% of Nike’s total revenues and nearly 40% of the company’s profits in the last fiscal year.
In addition, the Asian powerhouse has also been the company’s fastest-growing region — accounting for more than one-third of the company’s growth over the last three years.
With the coronavirus outbreak still in full swing, it is likely that Nike will continue to feel its effects. (ia/sovereignph.com/Forbes)