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February 7, 2020updated 07 Sep 2022 7:08am

Major cosmetic retailers see China’s coronavirus impact sales

Major cosmetic retailers have provided update on the impact of the outbreak of the 2019 novel coronavirus (2019-nCoV) in China on their sales.


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Walmart: Going Beyond Company Disclosures

Walmart has rounded out its fiscal year with a strong set of numbers that show it has taken supply chain disruption, rising costs, heavy inflation, and various other problems in its stride. There is comfortable growth on both the top and bottom lines, which is extremely respectable given tough prior year comparatives. Walmart hiring is slowing down as compared to hiring in the months of April and March in 2022. Walmart posted close to 40,000 vacancies in March and 30,000 in April, which has gone below 10,000 in June 2022. Walmart Company Filings has most of the mentions related to the ESG and COVID-19 themes in 2021. ESG has more than 300 mentions in the company’s 2021 filings which indicates the rising focus on ESG-related issues. Our report on Walmart: Going Beyond Company Disclosures, demonstrates GlobalData Explorer’s ability to:  
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Follow the latest updates of the outbreak on our timeline.

Major cosmetic retailers have provided an update on the impact of the outbreak of the 2019 novel coronavirus (2019-nCoV) in China on their sales.

Sephora, Estee Lauder Companies, L’Oréal, Shiseido and Burberry are among the many beauty retailers that have warned of a temporary slowdown as the viral outbreak will most likely ruin sales to travellers and Chinese consumers.

The health crisis is expected to adversely impact the global travel retail market over the next few months.

Estée Lauder president and chief executive officer Fabrizio Freda said: “The global situation will also affect our financial results in the near term, so we are updating our fiscal year outlook. We will be ready to return to our growth momentum as the global coronavirus outbreak is resolved.”

The company has not provided the quarterly guidance and instead issued guidance for the second half of the fiscal year.

Estée Lauder has forecasted reported net sales to increase between 6% and 8% compared to the prior-year period.

Beauty and cosmetics company Sephora has reportedly suspended or cancelled its make-up services following the outbreak.

Meanwhile, French firm L’Oreal has not issued any guidance but noted that the crisis will have a temporary impact on its business in China.

L’Oreal’s remains “confident to outperform the beauty market” this year.

Burberry has revealed that 24 of its 64 stores in Mainland China are closed, with remaining stores operating at reduced hours.

Burberry said in a statement: “The outbreak of the coronavirus in Mainland China is having a material negative effect on luxury demand.”

“We are taking mitigating actions but the benefit in the current year will be limited given the proximity to our March year-end.”

Japanese multinational personal care company Shiseido said that sales of its products fell by 55% during the Lunar New Year holiday from a year earlier due to coronavirus.

Originating in Wuhan, the 2019-nCoV has infected more than 31,000 people with the death toll rising to 636 across as of 7 February.

The outbreak, which was declared a global emergency by the WHO, has also disrupted the global aviation market.

Global fashion luxury group Capri also warned of  around $100m hit and earnings per share by $0.40 to $0.45.

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Walmart: Going Beyond Company Disclosures

Walmart has rounded out its fiscal year with a strong set of numbers that show it has taken supply chain disruption, rising costs, heavy inflation, and various other problems in its stride. There is comfortable growth on both the top and bottom lines, which is extremely respectable given tough prior year comparatives. Walmart hiring is slowing down as compared to hiring in the months of April and March in 2022. Walmart posted close to 40,000 vacancies in March and 30,000 in April, which has gone below 10,000 in June 2022. Walmart Company Filings has most of the mentions related to the ESG and COVID-19 themes in 2021. ESG has more than 300 mentions in the company’s 2021 filings which indicates the rising focus on ESG-related issues. Our report on Walmart: Going Beyond Company Disclosures, demonstrates GlobalData Explorer’s ability to:  
  • Track and monitor a company’s movements through alternative indicators to gain insights into the strategy before it is disclosed by the company
  • Gain insight into a company’s capital deployment strategy, by assessing historical deal volumes and specific transactions executed by the company, in addition to identifying sectors of focus
  • Go beyond basic financial information, to access key industry-relevant indicators for a company and how these have progressed over time
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.