Retail brands restrict China operations amid COVID-19

Lululemon Athletica Inc has closed most of its stores in China, and the rest are operating on a reduced schedule. “We’re inspired by the resilience and commitment of our team in China as we navigate the emerging impacts of the coronavirus. The safety of our people is our highest priority, and we are adjusting store operations based upon the recommendations of local authorities,” Lululemon CEO Calvin McDonald said in a statement.

Major fashion retail companies that already closed or curtailed hours of operation at their stores in China include Nike, Burberry Group, Ralph Lauren, SMCP, PVH Corp, Kering, VF Corp, Skechers USA, Tapestry, Capri Holdings (which owns Michael Kors, Versace and Jimmy Choo), and Adidas.

Along with retailers, COVID-19 has impacted business associates, distributors and others related to the retail business and operations.

Although retail brands have reported lower sales, the extent of loss remains unclear. Ralph Lauren estimates that its "fourth-quarter guidance will be negatively impacted by $55 million to $70 million in sales as well as $35 million to $45 million in operating income in Asia." It adds that its estimates could materially change if there is meaningful deterioration from current trends.

Fibre2Fashion News Desk (DD)