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Wednesday 5 February 2020

Supply Chain Coronavirus Questions Loom

While the world is still holding its breath hoping the coronavirus outbreak doesn’t get any worse — or deadlier — the accounting of its financial impact is starting to become more clear.  At least on the revenue-generating side of the fashion equation, that is. The supply chain is still a big unknown. Many companies, including Levi Strauss & Co., Ralph Lauren Corp. and Nike Inc., have all closed about half of their stores in China. But Capri Holdings was the first to put the disruption from the illness into sales terms on Wednesday.  The company, which owns Michael Kors, Versace and Jimmy Choo, has closed 150 stores in China and said its revenues next quarter would take a $100 million hit from the virus.  But there could still be another shoe to drop if more factories close as Chinese officials work to contain the virus and the international transportation network reacts.   The timing of the outbreak has helped to ease its impact. At least some brands shipped goods earlier than usual given the early Lunar New Year. And for factories that were already shut down for the holiday, the closure was simply lengthened. February is also traditionally a slow month for shipping and retail, a

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