From Nike to Walt Disney, international companies warn coronavirus outbreak is starting to pinch results
- Carmaker Hyundai has halted production in South Korea because of a shortage of parts from Chinese suppliers
- Disney is preparing for its Hong Kong and Shanghai theme parts to be closed for up to two months
Major corporations from Apple to Hyundai and Walt Disney Company are warning that the coronavirus outbreak is weighing on their businesses.
The health crisis in China has forced the closure of shops and theme parks, severely reduced foot traffic at outlets that remain open and disrupted parts of the global supply chain.
The growing chorus of warnings is a sign of how dependent international companies have become on China not just as a manufacturing hub, but as a source of revenue as they seek to tap consumers in the world’s second largest economy.
Nike said on Wednesday that half of the stores it owns in China had been temporarily closed and its other shops were operating with reduced hours and seeing fewer customers, which is having a short-term “material impact on our operations in Greater China”. China accounted for 17 per cent of the company’s revenue in its 2019 financial year.
“Despite this difficult situation, Nike’s long-term opportunity to continue to serve customers in Greater China with inspiration and innovation remains exceedingly strong,” said John Donahoe, the Nike president and chief executive. “As the same time, we continue to have extraordinary brand and business momentum in all other geographies.”
