Nike is closing stores in response to coronavirus
Nike (NKE) announced that it would close stores in multiple countries around the world, including in the United States, Canada, Western Europe, Australia, and New Zealand from March 16 through March 27 to limit the spread of COVID-19.
The global sportswear giant said in a statement that customers will still be able to shop on Nike.com and the Nike app.
“We are taking additional steps in other Nike-managed facilities, including the option to work from home, staggered work schedules, social distancing, and additional safety and cleaning steps to help protect and support our teammates,” the statement read.
Nike added that its company-owned stores in South Korea, Japan, most of China, and in many other countries are now open and will continue their normal hours of operations.
SHANGHAI, CHINA – 2019/09/07: Pedestrians walk past an American multinational sportswear corporation Nike store in Shanghai. (Photo by Alex Tai/SOPA Images/LightRocket via Getty Images)
“There will be a temporary hit to sales, although some of it will transfer to Nike.com,” Matt Powell, vice president and senior industry advisor at NPD Group, tells Yahoo Finance.
Susquehanna Financial Group analyst Sam Poser previously told Yahoo Finance that Nike is positioned to weather the economic effects of the coronavirus far better than its competitors.
“It’s one of the best companies out there, and it’s got a balance sheet that’s ridiculously good,” he said.
A Nike source tells Yahoo Finance that Nike store employees will continue to be paid during the closures.
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Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at @ReggieWade.
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