These 13 retail stocks are the most at risk of steep losses as China's coronavirus spreads (HBI, RL, LB, UAA, LULU, GPS, CPRI, GOOS, VFC, PVH, TPR, NKE, EL)
These 13 retail stocks are the most at risk of steep losses as China's coronavirus spreads (HBI, RL, LB, UAA, LULU, GPS, CPRI, GOOS, VFC, PVH, TPR, NKE, EL). Retailers with big businesses in China could see their sales numbers drop this Lunar New Year as the country combats the spread of coronavirus. For the most exposed companies, the cost could amount to a 3-5% reduction in earnings per share next quarter if coronavirus continues, Credit Suisse analyst Michael Binetti said in a Monday research note. To be sure, today's retail companies have certain tools in their back pocket that weren't available in previous outbreaks nearly two decades ago, Binetti said: e-commerce makes up a bigger share of business and should be more durable, and China and the Centers for Disease Control and Prevention are more equipped to combat the spread of contagious disease, he said. Still, previous viral outbreaks in China hampered retail, Binetti said: "At the height of reported SARS cases, Mainland China retail sales growth slowed to just +4%," about half the rate seen in the preceding 12 months.