As the terror of spreading outrageous coronavirus outbreak increases, Levi’s Strauss & Co. has shut down half of its stores in China. The firm believes this will take a long term toll on its financial sector as stated by Harmit Singh, the Chief Financial Officer of Levi’s on Thursday.
Levi’s had recently opened largest store in Wuhan, China just a few months ago the coronavirus outbreak, which has killed more than 200 people around the globe. The company have also asked its employees to not travel from China.
The recently opened Levi’s store in Wuhan, China contributes around 3% to the firm’s revenue. Singh stated that the epidemic will hamper company’s growth in near future. Coronavirus outbreak has led to many of the industries and business to temporarily shut down to curb the further spread. China is the world’s second-largest economy. Companies such as Tesla and Starbucks have taken note of the major financial hit their businesses are expected to take due to the outbreak. Starbucks has also confirmed to have shut down half of the stores in China last week.
Singh was focusing to a strong start in 2020 as Levi’s had kicked off with a great start during the holiday season. However, he stated that the coronavirus outbreak was not contemplated into the firm’s over all year forecast. The estimated earnings will be evaluated in the first quarter report in April.