// Nike warns of fourth-quarter hit from coronavirus virus-related store closures around the world
// Strong online demand was partly offsetting declines in its owned stores and wholesale channel
Nike has issued a warning that store closures as a result of lockdown orders across the globe will hurt its retail and wholesales businesses in the fourth quarter.
The news comes even as it ramps up its ecommerce capabilities to address increased online orders amid the Covid-19 pandemic.
The sportswear brand and retailer expects a hit to its fourth-quarter trading in all markets where its products are sold, as only five per cent to 40 per cent of Nike-owned stores are open, depending on the level of lockdown in place in those countries.
However, Nike said all of its directly-operated stores are open in China, while more than 95 per cent are open in South Korea, some with reduced hours.
Despite this, footfall traffic remains below prior year levels.
The sportswear giant said strong online demand was partly offsetting declines in its owned stores and wholesale channel.
Nike has been reopening stores in more than 15 countries including Germany, France, Brazil and the US.
Its stores in the UK remain closed as lockdown was extended until June 1.
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