The Retail Brands Most Exposed To A China Slowdown
When Apple slashed its sales forecast for the holiday quarter on Jan. 2, laying most of the blame on weakness in China, the news sent a shudder through financial markets. Apple’s announcement renewed anxieties about the slowdown of the world’s second-largest economy, read as a signal that the countless companies which have come to rely on China to buy their stuff should be concerned. Some companies, of course, are more vulnerable to a waning appetite in China than others. In a Jan. 3 note to clients, stock analysts at Wells Fargo looked at more than 30 publicly listed retail brands and how exposed they are to China. Though most brands in the group got less than 2% of their sales from the country, a few stood out, with 10% or more of their sales coming from China. Included in that set were Adidas, Tiffany, Nike, Skechers, Tapestry Inc. (owner of Coach and Kate Spade), and watch brand Fossil. Read more at Quartz.
