Nike: warns coronavirus may impact third-quarter
(CercleFinance.com) - Nike said that it expects the coronavirus to have a "material impact" on its operations in China in the near term.
However, the shares of the world's biggest footwear maker were pretty resilient in early morning trading, down just 1.3% compared to a 0.7% rise in the S&P 500 index.
"Roughly half of Nike's stores in China have been temporarily closed because of the coronavirus," analysts at Jefferies pointed out in a research note.
"Stores that are still open are on reduced hours and seeing less traffic than planned," they added.
In its statement, Nike said the situation was not contemplated at the time it provided its third-quarter guidance, during its second-quarter fiscal year 2020 earnings call.
According to UBS, the coronavirus situation could reduce the company's third-quarter EPS by 10-15 cents, considering a current consensus of 70 cents.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
However, the shares of the world's biggest footwear maker were pretty resilient in early morning trading, down just 1.3% compared to a 0.7% rise in the S&P 500 index.
"Roughly half of Nike's stores in China have been temporarily closed because of the coronavirus," analysts at Jefferies pointed out in a research note.
"Stores that are still open are on reduced hours and seeing less traffic than planned," they added.
In its statement, Nike said the situation was not contemplated at the time it provided its third-quarter guidance, during its second-quarter fiscal year 2020 earnings call.
According to UBS, the coronavirus situation could reduce the company's third-quarter EPS by 10-15 cents, considering a current consensus of 70 cents.
Copyright (c) 2020 CercleFinance.com. All rights reserved.