Nike Could Lose $3.5 Billion USD Due to Coronavirus Pandemic
The company’s stock has plunged since the beginning of 2020.
According to a report by Business Of Fashion, the global impact of the coronavirus outbreak may cause Nike to face losses of up to $3.5 billion USD in Q4 of 2020. The sneaker giant has already been forced to temporarily close its U.S. stores, as well as locations in Canada, New Zealand, Australia and Western Europe. Since the beginning of 2020, Nike’s stock has lost a third of its value.
Independent financial services company Cowen predicts that store closures, among other widespread effects of COVID-19 (such as the cancellation of major sporting events) will result in a 34 percent decrease in Nike’s revenue. Similarly, London-based Woozle Research, estimates Nike’s losses at above $5.5 billion USD over the next three to six months.
While you’re here, take a look at all the retail stores closing due to the coronavirus outbreak.
