Coronavirus News: Nike Says Crisis Will Negatively Impact China Operations

Sportswear giant Nike, Inc. said Tuesday that the coronavirus outbreak will negatively impact its financial situation and that the company has temporarily closed half of its stores in China. Other Nike stores in the country will be open for fewer hours amid the crisis.

The outbreak has killed at least 427 people and infected more than 20,000 individuals worldwide, with the majority of cases in China. The coronavirus has negatively impacted the Chinese economy and forced international companies to limit their operations in the country.

Entertainment company Disney said that the virus will force the company to shut down its theme parks in China for two months, decreasing its operating income by $175 million in the current quarter. The Shanghai Disney Resort and Hong Kong Disneyland Park have already been closed to prevent the virus from spreading.

Apple announced Saturday that it was temporarily closing all of its corporate offices and stores on the mainland. Apple relies on China for one-fifth of its total sales. Google has also announced that it is closing its China offices amid the outbreak. Video game company Nintendo said the crisis will impact the production of its popular “Switch” gaming console.

The coronavirus originated in a seafood and animal market in the Chinese city of Wuhan and has since spread across the country. The Chinese government has put millions of its citizens on lockdown amid the crisis.

Beijing has been criticized for downplaying the crisis and for withholding information about the outbreak.