US fashion retailer Ralph Lauren has estimated a sale hit between $55m and $70m in Q4 of fiscal 2020 following the outbreak of coronavirus (Covid-19) in China.
It expects a drop of $35m to $45 in its operating income in Asia, which is driven by China, Japan, and Korea.
The firm draws around 4% of its total revenue from China.
It has temporarily closed approximately two-thirds of its stores in the Chinese mainland over the past week due to the coronavirus (Covid-19) outbreak.
The retailer expects a broader impact across its businesses in China and parts of Asia as a result of reduced travel and retail traffic.
The firm expects supply chain disruptions in China to impact Q4 orders globally.
Ralph Lauren president and chief executive officer Patrice Louvet said: “Our dedicated teams are operating with agility in a highly dynamic situation, and we will continue to assess the implications for our business across retail, corporate and our supply base.
“While the health crisis creates near-term uncertainties, the fundamentals of our business are strong, and we continue to see significant long-term opportunities for growth in China and across Asia.”
The virus has killed 1,383 as of the end of 13 February, including the latest one in Japan.
Confirmed cases have reached 64,429, with China, Hong Kong and Macau accounting for 63,911 of these. The total number of recoveries currently stands at 6,886.
French luxury group Kering recently temporarily closed half of its stores in mainland China over Covid-19.