Lululemon Trades Down, Coca-Cola Investors Stay Positive After Coronavirus Updates

Lululemon Athletica Inc LULU said Friday that its 38 Chinese stores have been closed since Feb. 3 due to the COVID-19 virus outbreak in the country. 

Some of the athleisure retailer's stores in the country are now operating on a reduced schedule, according to the company's press release. Lululemon said it is continuing to monitor the evolving situation with the new coronavirus, and added that its online business has continued to operate.

Lululemon said it it will offer updates on the financial and operational impact from the coronavirus impact on its fourth-quarter call in late March.  financial and operational impact on fourth-quarter earnings in a conference call.

“We’re inspired by the resilience and commitment of our team in China as we navigate the emerging impacts of the coronavirus. The safety of our people is our highest priority, and we are adjusting store operations based upon the recommendations of local authorities,” CEO Calvin McDonald said in a statement. 

“Despite the current disruption to our growing business in China, we remain confident in the long-term opportunities this market holds for lululemon.” 

Coca-Cola Maintains 2020 Guidance 

Coca-Cola Co KO reaffirmed its full-year 2020 guidance Friday and estimated the impact the coronavirus outbreak will have on its first-quarter print. 

Coke said it anticipates a 2-3-point impact on unit case volume, a 1-2-point impact on organic revenue and a 1-2-cent impact on first-quarter earnings per share. 

The previously issued full-year guidance should still be met, according to the food and beverage company. 

More information should be provided during Coke's next earnings call in April, the press release said. 

Coke said it has enacted precautionary measures for employees in China such as providing face masks and hand sanitizers, installing temperature screening at its facilities and setting up health monitoring systems across its Chinese operations. 

China is Coke's third-largest market worldwide by unit case volume, according to the company. 

Lululemon, Coca-Cola Price Action

Lululemon shares were down 1.92% at $258.63 at the time of publication Friday, while Coca-Cola shares were 0.15% higher at $59.81. 

Related Links:

Lululemon Athletica Raises Q4 Revenue Guidance

Macau Shuts Casinos Amid Coronavirus Outbreak, Hong Kong Reports First Death

Photo: Shutterstock