In Poland, the textile, garment, and shoemaking industries are currently strongly affected by the COVID-19 epidemic. In order to prevent the spread of the epidemic, the Polish government decided to restrict the operation of shopping malls. This restrictive decision will cause financial losses to manufacturers and distributors of ready-made clothing and footwear.
Due to the severe epidemics in China and Italy, the supply of goods from China and Italy has been disrupted. These two countries play an important role in Poland’s supply structure.
The market value of listed companies in Warsaw in these industries has fallen by about 50% in the past two weeks, with losses estimated to be approximately PLN 7.5 billion. This is the most severe decrease in market value of any industry index on the Warsaw Stock Exchange.
CCC footwear manufacturer’s share price has fallen by 60%, and its capital has shrunk from 1.8 billion to 1.2 billion. The company hopes to make up for this in the online shopping department. loss. LPP lost more than PLN 5 billion in capital, and its stock price fell 40% in two weeks. As the situation in China has gradually stabilized, companies are worried that the epidemic will affect consumer demand more than supply.
