Yue Yuen Industrial, the Chinese sports-shoe manufacturer and retail conglomerate are predicting a loss of up to US$70 million in the March quarter as a result of the ongoing coronavirus pandemic.
The company issued a profit warning with the Hong Kong Stock Exchange, letting investors and potential investors about the potential loss. The Chairman Lu Chin Chu said the pandemic significantly impacted the operations of various business segments of the company.
“The pandemic delayed work resumption at the group’s factories in China after the Lunar New Year; it also adversely impacted its supply chain, resulting in a shortage of certain raw materials. This also led to additional production capacity adjustments in China and other countries. However, the spread of Covid-19 to US and Europe had severely dampened global consumer demand for athletic footwear, the chain effect of which is negatively affecting both footwear manufacturers and sports retailers,” said Chu.
