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Factbox: U.S. business forecasts earnings pressure as coronavirus spreads

Published 02/27/2020, 03:22 PM
Updated 02/27/2020, 03:25 PM
Factbox: U.S. business forecasts earnings pressure as coronavirus spreads

(Reuters) - As the coronavirus epidemic spreads in China and beyond, U.S. companies will see profits stagnate in 2020, according to a Goldman Sachs (NYSE:GS) report.

Several big names in the U.S. consumer and tech sectors have already warned of a hit from the rapid spread of the epidemic that has disrupted supply chains, hurt global travel and led to temporary shutdowns of businesses.

Here's a list of some big names from Corporate America that have announced a financial impact from the outbreak.

** Apple Inc (O:AAPL) warned it was unlikely to meet its March-quarter sales forecast as the iPhone maker's manufacturing facilities in China were ramping up slower than expected.

** Microsoft Inc (O:MSFT) said it does not expect to meet its quarterly revenue forecast for its Windows and personal computing business due to a hit to its supply chain.

** PC maker HP Inc (N:HPQ) said it factored in an 8 cents per share impact into its second-quarter profit outlook as it expects coronavirus outbreak to hit its businesses and supplies.

** Canada Goose Holdings Inc (TO:GOOS) (N:GOOS) forecast an annual revenue hit of up to C$51.6 million.

** Versace owner Capri Holdings Ltd (N:CPRI) warned of a $100 million hit from the outbreak and cut its annual revenue forecast.

** Estee Lauder Cos Inc (N:EL) trimmed its fiscal 2020 per-share earnings forecast, in part due to the impact from the outbreak.

** Ralph Lauren Corp (N:RL) has closed about two-thirds of its 110 stores in China and expects a $55 million to $70 million hit to its fourth-quarter sales in Asia.

** Coach handbag maker Tapestry Inc (N:TPR) warned of its second-half financial results being dented by about $200 million to $250 million in sales and 35 cents to 45 cents in earnings per share.

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