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Adidas, Puma warn of coronavirus hit to China business
Factories starting to produce, ship goods despite coronavirus: American Apparel CEO
American Apparel & Footwear Associates CEO Steve Lamar discusses the status of companies in China turning back on and continuing production.
HERZOGENAURACH, Germany (Reuters) – German sportswear makers Adidas and Puma have both warned that the coronavirus outbreak was hurting their business in China due to store closures and fewer Chinese tourists traveling and shopping in other markets.
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Adidas and Puma make almost a third of their sales in Asia, which has been a major growth market for the sporting goods industry in recent years. The region is also the main sourcing hub, with China a major producer for both companies.
Adidas said in a statement on Wednesday that its business in the greater China area had dropped by about 85% year-on-year in the period since Chinese New Year on Jan. 25. China accounted for 20% of Adidas sales in 2018.
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Puma said it expected the virus outbreak to hit its sales and profits in the first quarter but it still hoped to reach its targets for 2020, after reporting better-than-expected results for the fourth quarter, sending its shares up more than 8%.
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Adidas said it had also seen lower shopper traffic, mainly in Japan and South Korea, but added it had not yet registered any major business impact beyond greater China.