Since Hamas attacked Israel on Oct. 7, the stock market has largely shrugged off the escalating conflict, but some businesses are certainly feeling the pain more than others.
Marriott International CFO Kathleen Kelly Oberg noted cancellations and softer demand for its five properties in Israel and 27 in Lebanon, Jordan, and Egypt. But fees for these four countries made up less than 1% of Marriott’s total in 2022. About 1.5% of Royal Caribbean ‘s capacity had planned to visit Israel in the fourth quarter, said Liberty, and the cancellations and adjusted itineraries will likely shave $0.05 off the firm’s earnings per share. If the situation continues to deteriorate, however, it could weigh on consumer psyche and spill over to demand in Europe, he said.
Some companies are moving quickly to reduce damages. “Initiatives are underway to move inventory, identify alternative resources, and limit potential supply disruptions,” said Glenn Coleman, CFO of Dentsply Sirona, a dental equipment manufacturer with two manufacturing sites in Israel.