Adidas sees $1.1 billion coronavirus hit to China sales, Puma warns on profit
) warned on Wednesday of a major decline in sales in China due to the coronavirus and said while there were early signs of improvement there the impact had spread to other markets.
Adidas said it expected first-quarter sales to drop by up to 1 billion euros in greater China and operating profit to decline by between 400 million and 500 million.Puma said it no longer expected its business would return to normal soon, despite encouraging signs coming out of China, adding it was abandoning the 2020 guidance it gave on Feb. 19 that had assumed the crisis would be short lived.
Since emerging in China late last year, the new coronavirus has spread around the world, inflecting around 120,000 people, killing nearly 4,300 and sending markets into a tailspin.Adidas warned last month its business in the greater China area had dropped by about 85% year on year in the period since China’s Lunar New Year on Jan. 25.
In greater China, Adidas canceled all shipments to wholesale partners in February and it said it planned to clear excess inventory through its own channels in the rest of 2020.
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