The Worst Mistake Nike Investors Can Make Right Now
As the coronavirus outbreak expands worldwide, the news is getting worse and worse for Nike (NYSE: NKE). The athletic-wear giant in February temporarily closed about half of its stores in China, where the current health crisis began at the start of the year. Then came the worldwide halt to sporting events, which represent advertising and sponsorship deals for the company.
Nike this week announced the shutdown of its stores in the U.S., Canada, western Europe, Australia, and New Zealand through March 27 as COVID-19 cases reached more than 200,000 worldwide. And the latest blow to Nike is the postponing of this summer's Euro 2020 soccer championship until next year. Amid the turmoil, Nike shares have lost 35% this year.
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