Businesses continue to shut operations temporarily or reduced operating hours as the deadly coronavirus ravages on. Some companies warned investors of a revised full-year financial outlook with considerations of the impact of the coronavirus.
Estee Lauder said sales in its third quarter would likely reflect the beating it takes amid the situation in China. Aside from domestic sales, the canceled flights and reduced Chinese tourists shopping in its international stores would definitely take a toll on its 2020 profit.
American luxury brand Tapestry closed the majority of its stores, therefore warning the same financial impact for the rest of the year. The brand owns luxury names Coach, Kate Spade and Stuart Weitzman.
Ralph Lauren, meanwhile, closed about half of its 110 stores in China and still assessing the impact of such measures to its overall business. China accounts for 4% of the luxury brand's business.
H&M, Gap, Hugo Boss and Levi Strauss had also closed 50% of its China stores while Pandora thrives even with reduced shoppers in China. Tiffany closed several of its China stores. Gap had even closed its headquarters. Swatched closed five stores in Wuhan. Nike and Adidas were also compelled to shut doors temporarily.
The auto industry is also feeling the pinch of the coronavirus. Hyundai, Tesla, Ford, Peugeot Citroen, and Nissan already told investors to brace for impact. Honda is planning to extend suspension of its three facilities in Wuhan. Tata Motors, Jaguar and Land Rover parent company, had also spoken the same.
Ferrari, on the other hand, said it can offset decline in China sales for a few months more. However, the company said it is sales in Hong Kong that are becoming weaker each day.
Yum Brands, which operates KFC and Pizza Hut in China, closed one-third of its stores in the country. Yum Brands Holdings already warned investors of the possible 2020 profit hit. Same-store sales in restaurants that remained operational plunged by 40%.
Other fast food chains that closed previously were Starbucks, McDonalds, and Philippine brand Jollibee.
Even big names in the tech industry are bearing the brunt of the outbreak. Nintendo delayed shipments of its Nintendo Switch game. Qualcomm, supplier of chips for smartphone makers, revised its earnings guidance. Workers at Apple supplier Foxconn in central will be quarantined for two weeks.
Baidu delayed its fourth-quarter reporting as it further assess the damage. Carlsberg said it is early to give an estimate about the financial impact of the outbreak while Electrolux is in the process of estimating the outbreak's material impact.
State-owned China National Offshore Oil Corporation has suspended deliveries from suppliers, including Royal Dutch Shell and Total of France.
On the other hand, ArcelorMittal, the world's largest steel maker, is optimistic, saying the virus' impact will be short term.