The owners of American fashion brand Michael Kors, Capri Holdings Ltd, have announced the company have lost $100 million dollars in revenue due to the outbreak of the Coronavirus.
The Michael Kors store in the Bullring, Birmingham
The Coronavirus originated from Wuhan in China, where many of those affected either worked or visited the Huanan seafood wholesale market in the city. The virus is known to cause Pneumonia, those affected have symptoms such as coughs, fevers and breathing difficulties.
On 5 February 2020, Capri Holdings Chairman and CEO, John Idol announced there was a "material impact on our business". This occurred after China's strategies to protect the country's population and from the Coronavirus spreading further. The high-end designer brand has closed 150 of their 225 stores located across mainland China, with those that are still open experiencing significant declines in customer traffic.
Michael Kors was founded in 1981 by American designer Michael David Kors. The company is established in the making of men and women's accessories, watches, jewellery and footwear.
'This estimate could materially change if the severity of the situation in China worsens.'
John Idol - Chairman and Chief Executive of Capri Holdings
This news comes after Capri Holdings announced, in June 2019, its plans to grow the Michael Kors Asian business to $1 billion dollars over the next few years. Idol stressed the strategic importance of the Asian market for the fashion brand, aiming increase their business in Asia from 12% to 20%. China is the world's second largest economy and has a growing desire for luxury fashion.
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