Business financial make money capital trading
- Adidas is seeing its sales suffer due to the Wuhan coronavirus in Greater China.
- The German sportswear giant’s sales in the region are down 85% since January 25, compared with the same period last year.
- “We have been experiencing a material negative impact from the coronavirus outbreak on our operations in China,” Adidas said in a statement.
- Adidas bosses “proactively invested” in the Chinese business and said it was “booming” last year.
- Visit Business Insider’s homepage for more stories.
Adidas warned on Wednesday that its sales in Greater China have plummeted 85% since January 25, compared with the same period last year.
“We have been experiencing a material negative impact from the coronavirus outbreak on our operations in China,” the German sportswear titan said in a statement to Business Insider.
The company added that its efforts to safeguard employees and their families, as well as cooperate with Chinese authorities, have “led to a significant number of store closures … and a pronounced traffic reduction within the remaining store fleet.”
Reebok-owner Adidas also suffered traffic declines in Japan and South Korea, but hasn’t yet observed a “major business impact” beyond Greater China. However, it warned that as the situation is still evolving, and it can’t yet quantify the epidemic’s overall impact on its business this financial year.
Wuhan coronavirus has infected at least 75,000 people, killed more than 2,000, and spread to over 25 countries. The flu-like illness has disrupted Chinese manufacturing and industry, threatening to slow the nation’s economic growth this quarter.
The outbreak has also forced Adidas’ archrival Nike and other foreign companies to temporarily shut stores in the region. Apple warned this week that due to supply constraints, store closures, and less customer footfall, it doesn’t expect to hit its revenue target for this quarter.
The slowdown may be especially disappointing for Adidas, given it “proactively invested in the Chinese market” last quarter in an effort to accelerate growth, finance boss Harm Ohlmeyer said on the group’s third-quarter earnings call in November.
Did You See This CB Softwares?
37 SOFTWARE TOOLS... FOR $27!?Join Affiliate Bots Right Away
Moreover, Adidas CEO Kasper Rorsted trumpeted the nation’s potential at the group’s shareholder meeting in September. “Growth in the region is nowhere near over yet,” he said. “China is booming, and Adidas in China is booming, too.”
Subscribe to the newsletter news
We hate SPAM and promise to keep your email address safe