Virus impact: Huawei going to global mobile show
BEIJING (AP) — Chinese smartphone brand Huawei says it will attend the industry’s biggest global event this month in Barcelona while more companies reported losses due to China’s efforts to contain a disease outbreak.
The latest developments on Thursday:
HUAWEI TECHNOLOGIES LTD.: The smartphone maker said it will attend the industry’s biggest annual event, the Mobile World Congress in Barcelona, as planned this month. The company is preparing for the first global release of a new handset since U.S. sanctions imposed last year on security grounds cut off access to Google apps and other American technology. Huawei, which denies being a security risk, has yet to say whether that will happen in Barcelona. Its smaller Chinese rival, ZTE Corp., said earlier it will attend the Barcelona event but canceled a press event for the release of new devices.
NIKE, INC.: The world’s largest sports apparel brand said the closure of some stores in China, its biggest growth market, will have a short-term “material impact” on operations. Nike said it has closed about half its stores in China and retail traffic in those that still are open is lower than expected. China accounted for 17% of Nike’s 2019 revenue.
CAPRI HOLDINGS LTD.: The parent of Versace, Jimmy Choo and other designer brands said it expects virus-related disruption to its business to reduce this quarter’s projected revenue by $100 million. The company has closed 150 of its 225 stores in China. "This estimate could materially change if the severity of the situation worsens," said a company statement.
AP Business Writers Anne D’Innocenzio and Alexandra Olson in New York contributed.