NIKE’S new Chief Executive John Donohoe, who has recently visited China, admitted that sales and production there had been affected by measures introduced to prevent the spread of the coronavirus.
There are now 31,424 confirmed cases of coronavirus worldwide and at least 638 people have died, according to the latest figures from the World Health Organization (WHO).
Nike generated $6.2 billion in sales in the region last year, up from $2.6 billion in 2014.
“Now, consistent with what’s going on right now, roughly half of our stores in China, both our Nike-owned stores and partner stores, are temporarily closed and those that are open are operating under reduced hours,” Donohoe told Sara Eisen on CNBC’s Closing Bell program.
“And so, there’s lower traffic, and that’s why we announced there will be a reduction in our China results this quarter,” he said. “But what I will tell you from my time there only three weeks ago is the Chinese consumer has a deep connection with Nike, and a deep connection with our innovation.”
“And so, we remain very confident around China as an important opportunity and market in the medium to long term. And we’re hopeful that the situation there resolves itself over the coming weeks, and we’ll stay close,” he added.
Nike has 11 contracted factories and hundreds of thousands of workers in China, which produces around 23 percent of the company’s footwear and 27 percent of its apparel. Donohoe claimed, so far, the crisis had not hit Nike’s production, yet.
“Well, not significantly yet,” he said. “But we’re keeping a close eye on it. As you said, we have a global supply chain. And so, we’re just looking to see how we can balance that supply chain with the various demand factors around the world.”
Nike’s big rival Adidas has also closed stores in China. The German company claimed it is too early to assess the negative impact on its operations there.
Fide: FROM CHINA TO U.A.E.
THE World Chess Federation (Fide) relocated its Presidential Council from China to the United Arab Emirates due to the outbreak of coronavirus.
The meeting will take place alongside the Fide General Assembly in Abu Dhabi on February 28 and 29.
“We are constantly monitoring the situation, and I am in permanent touch with our ambassador to China,” Fide President Arkady Dvorkovich said. “Many Chinese chess players are participating in our tournaments, and we have Chinese colleagues in the federation.”
“We had a scheduled presidential council session in China in late March, but we decided against taking the risks and relocated it,” he added. “It will be held in late February on the sidelines of the General Assembly’s meeting in Abu Dhabi.”
Dvorkovich also revealed the main issues at the General Assembly would be the Federation’s new charter and a new budget.
A large number of sporting events in China have already been canceled or rescheduled.
Sports affected include boxing, football, wrestling, basketball, tennis, hockey, badminton, diving, equestrian, golf and biathlon.
The World Athletics Indoor Championships, initially scheduled for March in Nanjing, is the most high-profile sporting event to be postponed because of the virus, so far.
It has been delayed by a year until March 2021.
The opening test event for the Beijing 2022 Winter Olympics, an Alpine Skiing World Cup in Yanqing, was also canceled.
This year’s SportAccord World Sport and Business Summit in Beijing, scheduled for between April 19 and 24, is another major gathering under threat.
TRIP TO MALAYSIA CANCELED
IRELAND’S women’s hockey team have canceled their planned trip to Malaysia in light of growing fears around the spread of coronavirus in the nation.
The trip was set for next month as part of their buildup for the Tokyo 2020 Olympic Games, with Hockey Ireland now looking at an alternative destination for warm weather training.
The slot, from mid-March to early April, needs filling, with one possibility being a return to South Africa, where Ireland recently played against the hosts, as well as Germany.
Other nations are also relocating their training sessions ahead of the Games—where the Emerald Isle’s women’s team will be competing for the first time.
Ireland qualified after two 0-0 draws against Canada resulted in a shoot-out, which they won on home soil in Dublin.
Their first Olympic group match will be against South Africa, having been drawn in a group with The Netherlands, Britain, India and Germany also.
Malaysia has also been impacted by the virus, with the total number of people infected in the nation rising to 15 after a 59-year-old woman from Wuhan tested positive for coronavirus after holidaying in the country.
This comes on the same day that Malaysia announced plans to close all travel to and from any Chinese provinces to contain the spread.
VIETNAM STRICT ON HOSTING
ASIAN Football Confederation (AFC) Cup matches involving Vietnamese teams have been relocated after the country’s government banned the hosting of sporting events in the country due to the coronavirus outbreak.
Two AFC Cup 2020 group stage matches featuring Vietnamese teams—Ho Chi Minh City and Than Quang Ninh—are affected with the home fixtures being switched to away ties.
Ho Chi Minh City’s match first meeting with Burmese club Yangon United will now take place in Myanmar on February 11, with the return fixture provisionally scheduled for Vietnam on April 29.
Than Quang Ninh’s first match with Filipino side Ceres-Negros will now take place in the Philippines on February 25, with the return match provisionally scheduled for Vietnam on May 13.
Other matches impacted by the coronavirus outbreak were the AFC Cup preliminary round two of Central and East zone ties between FA Ahal of Turkmenistan and FC Neftchi of the Kyrgyz Republic, and the fixture between Ulaanbaatar City of Mongolia and Taipower Co. of Chinese Taipei which did not take place on February 5.
Regarding those matches, an AFC spokesman said: “Both matters will be considered, and appropriate action will be taken in due course.”
AID FOR CHINESE JUDOKAS
INTERNATIONAL Judo Federation (IJF) President Marius Vizer is set to ask for an increase in the sport’s quota for this year’s Olympic Games in Tokyo to ensure that Chinese competitors are not disadvantaged by the coronavirus crisis which is having a major impact on sport, he revealed here.
Chinese judoka are missing from the IJF Grand Slam, which has started, because the French Embassy in Beijing is closed as a result of the outbreak. That made it impossible for the Chinese delegation to obtain the necessary visas to travel to France.
It means they will miss out on the opportunity to gain valuable ranking points to help them qualify for Tokyo 2020.
Vizer chaired an emergency meeting of the IJF Executive Committee in the French capital last night to discuss the situation.
He has already contacted the International Olympic Committee (IOC) to try to find a solution to ensure Chinese judoka do not miss out on Tokyo 2020 as a result of the crisis.
“Since the beginning [of the coronavirus outbreak], we are developing the matter with Chinese [Judo] Federation and the event organizers,” Vizer said.
“In Paris, the Chinese delegation can’t participate because of visa issues, and it’s set to be the same for the Grand Slam in Germany later this month,” he said. “We are in discussions and even negotiations with the IOC on how to find a solution to show solidarity, humanity, and support to our Chinese colleagues and to protect the IJF community.”
“It is a serious issue and a special situation which at the moment cannot be solved,” he added.
China won two Olympic medals at Rio 2016, both bronze thanks to Cheng Xunzhao in the men’s 90 kilograms and Yu Song in the women’s over 78 kg.
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