Berlin Germany (Reuters) – German sportswear makers Adidas (ADSGn.DE) and Puma (PUMG.DE) both said on Wednesday that the coronavirus outbreak was hurting their business in China due to store closures and fewer Chinese tourists traveling and shopping in other markets. Adidas and Puma make almost a third of their sales in Asia, which has been the major growth market for the sporting goods industry in recent years. The region is also a key sourcing hub, with many sneakers produced in China and other Asian countries. Adidas said in a statement that its business in the Greater China area had dropped by about 85% year-on-year in the period since Chinese New Year on January 25. Adidas said it had also seen lower shopper traffic, mainly in Japan and South Korea, but added that it had not yet registered any major business impact beyond Greater China.
“The magnitude of the overall impact on our business for the full-year 2020 cannot be quantified reliably at this point in time,” it said, adding it would give more details when it publishes 2019 results on March 11.
Adidas sells its products from about 12,000 stores in China, most of them franchises plus less than 500 own-operated stores. Puma said it expected the virus outbreak to hit its sales and profits in the first quarter but it still hopes to reach its targets for 2020. Puma said more than half of its stores in China were temporarily closed and the decline of the Chinese tourism business was also hurting other markets, especially in Asia. It said the uncertainty about the duration of the virus made it difficult to forecast but it is working under the assumption that the situation will normalize in the short-term. In the fourth quarter, Puma reported its strongest sales growth in the Asia/Pacific region of a currency-adjusted 23%. Nick Note: See the game? the sold out pompous pricks on Wall Street told you how China with the emerging middle class of a billion people was the future. Form smart phone companies to Starbucks sugar water flavored coffee the plastic show makers to apple, Intel, Navidia to name a few all otld how China was the future. Even fast food shops Like KFC (Yum Brands) McDonald’s and the rest of heart attack food provayers ALL based their ENTIRE future on China. In the retail category stores Like Gucchi, Tiffanies, Wallmart carrefour, Tesco, Amazon your internet China supply to your door store, WallMart your China retail shop on every corner and even grocery chains went ape shit crazy to get to China to make things, Sell things and supply things. Do not forget car companies like Gm, Ford, Tesla, Toyota to name a few the world over rely on China for their just in time single source critical parts suppliers. Now these S&P500 companies are defining in their silence refusing to report the impact of the FACT that half of China’s workforce are still under quarantine……. Well i am here ready to charge them a great big lieing asshole tax…….. AGAIN!!!!