WASHINGTON (dpa-AFX) - VF Corp. (VFC) said that it has temporarily closed about 60 percent of its owned and partner stores in China due to coronavirus mitigation efforts. Stores currently open have experienced significant declines in retail traffic.
The company noted that it did not include any possible impact from the coronavirus when it issued its 2020 outlook in January. So it will provide an update on financial impacts of coronavirus during its fourth quarter conference call in May 2020.
The company noted that the coronavirus outbreak will impact its financial results in the Asia Pacific region in the near term, but the company's growth opportunity in China and across the Asia Pacific region is significant and the fundamentals of its business are strong.
In Fiscal 2019, the Asia Pacific region and China represented 12 percent and 6 percent, respectively, of total VF revenue.
'while it is not possible to gauge the impact to our supply chain at this point, approximately 16 percent of VF's total cost of goods sold is sourced directly from mainland China, of which 7 percent is bound for the US market,' VF said in a statement.
Copyright RTT News/dpa-AFX
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