×
182
Fashion Jobs
FREEDOM PEOPLE
PR Manager
Permanent · LONDON
FREEDOM PEOPLE
Marketing Executive
Permanent · LONDON
FOUR SEASONS RECRUITMENT
Ecommerce Executive
Permanent · LONDON
FOUR SEASONS RECRUITMENT
Operations Manager
Permanent · LONDON
HAYS RECRUIMENT
Wholesale Fashion Account Executive
Permanent · LONDON
FOUR SEASONS RECRUITMENT
Production Manager
Permanent · LONDON
FOUR SEASONS RECRUITMENT
Creative Director - Multi-Brand Concept Store
Permanent · LONDON
TOO FACED
Too Faced - Business Manager 30Hrs - John Lewis Brent Cross
Permanent · LONDON
HOUSE OF GHARATS
Researcher And Writer Art, Textile Craft & Fashion - Internship
Internship · RUISLIP
LONE DESIGN CLUB
Graphic Design And Social Media Internship
Internship · LONDON
STUDENT AMBASSADORS
Student Ambassadors - Global
Internship · LONDON
SOCIAL MEDIA MARKETING - INSTAGRAM
Social Media Intern - Remote Role
Internship · LONDON
THORNAE- FMC
Fashion Marketing/Sales Internship Consultant
Internship · LONDON
CLAUDIE PIERLOT
Coordinateur (Rice) Retail & RH - UK & Irlande - Stage H/F
Internship · LONDON
LONDON ORGANIC PR
Social Media Intern - Twitter
Internship · LONDON
LONDON ORGANIC PR
Social Media Intern - Facebook
Internship · LONDON
PAUL SMITH
Part-Time Design Studio Intern - Menswear (June - December 2020)
Internship · LONDON
PAUL SMITH
Part-Time Design Studio Intern – Paul Smith Collection, Womenswear (June – December 2020)
Internship · LONDON
PAUL SMITH
Part-Time Design Studio Intern – ps by Paul Smith, Womenswear (June – December 2020)
Internship · LONDON
PAUL SMITH
Part-Time Print And Textile Design Studio Intern (June - December 2020)
Internship · LONDON
PAUL SMITH
Part-Time Wholesale Ecommerce Support Intern (June - December 2020)
Internship · LONDON
REJINA PYO
Accessories Design And Development Manager
Permanent · LONDON

Adidas, Puma warn of coronavirus hit to China business

By
Reuters
Published
Feb 19, 2020
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

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 travelling and shopping in other markets.


Reuters



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.

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%.

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.

It said it could not yet quantify the overall impact on its business for 2020, 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. Almost a fifth of its shoes and apparel are produced in the country and an Adidas spokeswoman said the company was working to mitigate the impact on sourcing, declining to give details.

OUTBOUND SHIPMENTS

Puma said more than half of its stores in China were temporarily closed and the decline of Chinese tourism was also hurting other markets, especially in Asia, such as Singapore, Japan and Taiwan. But it is working under the assumption that the situation will normalise in the short term.

Puma Chief Executive Bjorn Gulden told a news conference that most of its factories were already operating again after the Chinese New Year and outbound shipments had improved in the last four to five days as ports reopened.

“We should be able to fulfil February and March orders with a three-week delay,” he said.

Gulden said if stores were still closed in four weeks then Puma might have to reconsider its 2020 guidance, noting that China accounts for up to 13% of sales and is also its most profitable market.

In the fourth quarter, Puma reported its strongest sales growth in the Asia/Pacific region of a currency-adjusted 23%.

“An aggressive response to the crisis seems to be helping contain the epidemic,” said Jefferies analyst James Grzinic.

“If confirmed, this would suggest that a tough first quarter should be followed by a strong recovery in the second quarter and beyond.”

© Thomson Reuters 2020 All rights reserved.