- Prachi Singh |
In light of the coronavirus outbreak, VF Corporation has temporarily closed about 60 percent of its owned and partner stores in China due to coronavirus mitigation efforts, while the company said in a statement that stores currently open have experienced significant declines in retail traffic.
“The safety and well-being of our associates and partners in China is our highest priority. Our thoughts are with those people affected by the coronavirus,” said Steve Rendle, VF’s Chairman, President and CEO, adding, “While the coronavirus will impact our financial results in the Asia Pacific region in the near term, VF’s growth opportunity in China and across the Asia Pacific region is significant and the fundamentals of our business are strong. VF is well positioned to navigate the impact of the coronavirus situation given the diversity of our business and operating model in other key geographies.”
In Fiscal 2019, the Asia Pacific region and mainland China represented 12 percent and 6 percent, respectively, of total VF revenue. The company added that while it is not possible to gauge the impact to its supply chain at this point, approximately 16 percent of VF’s total cost of goods sold is sourced directly from mainland China, of which 7 percent is bound for the US market.