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Adidas, Puma warn of virus blows to 2020 business

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Sportswear giants face disruption to their supply chains with store closures, lower sales. FMTNews Adidas

FRANKFURT: German sportswear makers Adidas and Puma on Wednesday warned the coronavirus outbreak would deal painful blows to their business in 2020, weighing especially on the first quarter with store closures and lower sales.

Meanwhile, Puma said it “cannot quantify the negative effect” but pointed to sales “severely affected” in China and other Asian countries, adding there was “significantly lower” traffic to its stores in Europe as the virus spreads. Nevertheless, “we cannot yet reliably quantify the magnitude of the overall financial impact in 2020,” Adidas CEO Rorsted said.

Without the effects of the coronavirus outbreak, Adidas had forecast sales growth of 6% to 8% and “double-digit-rate improvement of the bottom line” in 2020.

 

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