Top sportswear brands warn of multi-million pound sales hits as coronavirus epidemic worsens
The world’s top sportswear brands have warned of multi-million pound hits to sales as the coronavirus epidemic spreads.
Adidas said its sales would fall by £850million in greater China, hitting operating profit by up to £440million.
Further falls in demand in South Korea and Japan will contribute to a 10 per cent drop in first-quarter sales, compared with last year.
Adidas, whose clients include Danish tennis star Caroline Wozniacki (pictured), said its sales would fall by £850m in greater China, hitting operating profit by up to £440m
Puma has also warned on profits, adding it did not expect business to return to normal soon.
‘The virus hit looks worse than feared,’ Jefferies analyst James Grzinic wrote in a note on Adidas, whose clients include Danish tennis star Caroline Wozniacki.
Shares in Adidas and Puma, pummelled in the past few weeks, fell 8 per cent and 4.5 per cent respectively.
Puma said: ‘We unfortunately conclude that a short-term normalisation will not occur.’