May 14, 2020 / 8:39 PM / 11 days ago

Nike warns of fourth-quarter hit from virus-related store closures

FILE PHOTO: People wearing protective face masks walk past the closed Nike store on a nearly empty 5th Avenue, during the outbreak of the coronavirus disease (COVID-19), in Manhattan, New York city, New York, U.S., May 11, 2020. REUTERS/Mike Segar

(Reuters) - Nike Inc (NKE.N) said on Thursday store closures across the globe will hurt its retail and wholesales businesses in the fourth quarter, even as it ramps up its e-commerce capabilities to address increased online orders amid the COVID-19 pandemic.

The sportswear maker forecast a hit to its fourth-quarter financials in all the geographies where its products are sold, as only 5% to 40% of Nike-owned stores are open there.

However, the company said all Nike-owned stores are open in China, while more than 95% are open in South Korea, some with reduced hours. It added that traffic remains below prior year levels.

The company also said it is seeing increased new member acquisitions and the strong digital demand is partly offsetting declines in its owned stores and wholesale channel.

Nike has been reopening stores in more than 15 countries including Germany, France, Brazil and the United States.

Shares of the company fell marginally in extended trading.

Reporting by Praveen Paramasivam in Bengaluru; Editing by Shailesh Kuber

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