Nike Lost $17 Billion USD in Market Valuation Due to the Coronavirus

The heavy effect of the outbreak.

By
Fashion
154,062 Hypes 39 Comments

A new statement released by Nike indicates that the coronavirus outbreak — particularly in China — resulted in a $17 billion USD depreciation in market value. Because of the virus, the sportswear giant has been forced to shut down almost half of all its stores in the country, and those that were still open operated at reduced hours. Of course, foot traffic has also been significantly reduced due to health concerns and people feeling reluctant to go outside, further affecting Nike’s sales. Most significantly, however, is the fact that the affected market is Greater China, a new report from Forbes explains why.

According to the financial publication, China is the company’s fastest-growing and most profitable region in the world, accounting for 15 percent of the total revenue and a whopping 40 percent of profits during the 2019 financial year. From 2016 to 2019, the country was responsible for more than a third of the company’s global growth, adding $2.4 billion USD in revenue to Nike at an 18 percent per annum rate, a significantly higher number than the 6.5 percent accounted for by the rest of the world. Unsurprisingly, China is also Nike’s most profitable region for the past four years, bringing in an additional $800 million USD to the company’s total adjusted operating profits.

With the coronavirus seemingly still expanding, it is still uncertain how deep the financial issues caused by the outbreak can go.

Elsewhere in business-related news, Disney’s CEO Bob Iger has stepped down.

Read Full Article

What to Read Next

Converse Wraps CPX70 in Premium Leather & Suede
Footwear

Converse Wraps CPX70 in Premium Leather & Suede

An understated take on the hybrid silhouette.

'Diablo 4' Adds New Cannibal Monster Family
Gaming

'Diablo 4' Adds New Cannibal Monster Family

With a trailer offering a first look.

Coca-Cola Launches AHA, Flavored Seltzer Beverage Line
Food & Beverage

Coca-Cola Launches AHA, Flavored Seltzer Beverage Line

Featuring eight unique flavor combinations


Urwerk Releases Two-Tone Limited Edition UR-111C
Fashion

Urwerk Releases Two-Tone Limited Edition UR-111C

Limited to only 25 units.

Drake Gifts Matthew M Williams Diamond Rollercoaster Alyx Chain
Fashion

Drake Gifts Matthew M Williams Diamond Rollercoaster Alyx Chain

Over 40 carats.

Hot Toys Drops Miles Morales 'Spider-Man: Into the Spider-Verse' 1/6th Figure
Design

Hot Toys Drops Miles Morales 'Spider-Man: Into the Spider-Verse' 1/6th Figure

An accessory-packed release.

More ▾
 
Subscribe to our Newsletter

Gain access to exclusive interviews with industry creatives, think pieces, trend forecasts, guides and more.

By subscribing, you agree to our Terms of Use and Privacy Policy.

Help us serve you better

We noticed you are using an ad-blocker

We appreciate your support in allowing HYPEBEAST ads, where we can share contents from the latest fashion, to those culturally relevant. In adding HYPEBEAST to your ad blocker's whitelist, ads on our sites will show while you continue to browse.