adidas and PUMA Forecast to Lose Over $1 Billion Due to Coronavirus Pandemic
German sportswear giants adidasand PUMAare the latest brands to suffer as a result of the global coronavirus outbreak. International news organisation Reuters hasreported that shares in adidas and PUMA have plummeted due to a major decline in sales across China since the coronavirus took hold in January.
With stock at a one-year low, adidas said it expected first-quarter sales to drop by up to 1 billion euros ($1.14 billion) in greater China, and operating profit to decline by between 400 million and 500 million.
PUMA said it no longer expected its business would return to normal anytime soon, despite their Chinese production and global supply chain back up and running again.
Like most sporting goods companies, adidas and PUMA make almost a third of their sales in Asia, so expect to hear more updates on the financial woes of our favourite sneaker brands as the coronavirus outbreak appears to show no sign of slowing down.