Adidas, Puma caution of coronavirus hit in China businesses

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Adidas, Puma caution of coronavirus hit in China businesses

On Wednesday, the 19th of February 2020, Adidas AG and Puma SE, two of the leading German sportswear manufacturers, had raised alarms over China’s Wuhan coronavirus’ financial fallout adding that the epidemic had been battering their businesses in China due to a much-downsized number of tourists and store closures.

In point of fact, Asian markets had been contributing a third of Adidas’ and Puma’s entire sales, while the German sportswear manufacturers had also been attaining a higher growth in its Asian business, in particular in China.

Aside from that, according to Adidas’ Wednesday (February 19th) statement, the German sportswear manufacturer’s China sales had dropped more than 85 per cent since January 25th compared to the same time a year earlier, while Puma was quoted saying in its Wednesday’s (February 19th) announcement that the China epidemic would likely to hit its first quarterly sales, nonetheless the company had also added that it had still been expecting to reach its 2020 profit target following release of a batter-than-anticipated operating profit in the fourth quarter of 2019, eventually lifting up the shares’ prices of Puma by more than 8 per cent.

However, forecasting a gloomier outlook in a near future, a spokeswoman for Puma was quoted saying that the German sportswear manufacturer was almost entirely forced to shut down more than half of its stores in China amid a fast-spreading coronavirus in China which had led to the deaths of more than 2,000 people over the past three weeks.