Nike Inc (NYSE: NKE) said Tuesday it will close around half of its total store fleet in China due to the coronavirus outbreak, while other locations are expected to see lower traffic. UBS analyst Jay Sole said this will have zero impact on the sell-side firm's long-term bullish bullish thesis on Nike.
'Material Impact' From Coronavirus
The coronavirus will have a “material impact” on Nike's operations in Greater China in the near-term, the company said in a Tuesday press release.
Yet the company also cited ongoing “strong” momentum with the Chinese consumer and in its online store.
The financial impact on Nike's fiscal third-quarter earnings is projected at a 10-15-cent EPS miss on consensus estimates of 70 cents, Sole said in a Wednesday note.
This is based on several key assumptions, the analyst said:
- The coronavirus only impacts Nike's business in half of January and all of …
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