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Wednesday, February 5, 2020

Nike shuts half its stores in China amid outbreak

Nike Inc. NKE, -0.97% says it has temporarily closed about half of its stores in China because of the coronavirus outbreak. The company said its remaining open stores are operating with reduced hours and have experienced lower than expected retail traffic. “In the short term, we expect the situation to have a material impact on our operations in Greater China,” the company said in a statement. “However, Nike brand and business momentum with the Chinese consumer remains strong, as reflected in the continued strength of our Nike digital commerce business.” Nike shares are up 22% over the past year, while the broader S&P 500 SPX, +0.94% is up 20.5% the past 12 months. Nike shares were flat in after-hours trading.

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