Clothing and Luxury

About half the Nike stores in China have shut down, and those that remain open have shortened hours, the company said. Nike has not released a numerical estimate of the financial repercussions, but told investors that it expected “the situation to have a material impact on our operations in greater China.”

Canada Goose Holdings said the impact would be substantial enough that it had to lower its profit outlook for the year, saying customer traffic in China and in “international shopping destinations in North America and Europe” has been affected. “No supply chain interruptions have occurred,” the company said in a statement on Friday.

The VF Corporation, which owns brands like Timberland and the North Face, announced it would temporarily close about 60 percent of its stores in China. And it said traffic had slipped at stores that are currently open.

Burberry warned investors that the outbreak was having a “material negative effect on luxury demand.” Twenty-four of its 64 stores in mainland China are closed, and those that remain open, with reduced operating hours, have fewer shoppers than usual, the company said.



Tapestry, the American luxury giant that owns Kate Spade, Coach and Stuart Weitzman, said the outbreak could reduce its sales by up to $250 million in the second half of the year.

And Estée Lauder, the luxury cosmetics company, warned that the outbreak would hurt its financial results “in the near term,” predicting that sales in the third quarter of 2020 would be the most affected. The spread of the virus has slowed air travel and tourism, reducing store traffic in key global shopping areas, it told investors.