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February 20, 2020

Adidas China sales tumble 85% due to coronavirus

Sportswear firm Adidas says its sales in Greater China have slumped 85% since Chinese New Year amid the coronavirus outbreak, with a significant number of stores closed and a reduction in footfall at its locations that do remain open.

By Beth Wright

Sportswear firm Adidas says its sales in Greater China have slumped 85% since Chinese New Year amid the coronavirus outbreak, with a significant number of stores closed and a reduction in footfall at its locations that do remain open.

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The company notes its business in the country “performed strongly” in the first three weeks of the year, but have tumbled year-on-year since then.

“Since the start of the crisis, we have been working closely with the Chinese authorities to take measures to contain the epidemic and show our solidarity with the people directly affected. All of this has led to a significant number of store closures – both own- and partner-operated – and a pronounced traffic reduction within the remaining store fleet,” Adidas says in a statement shared with just-style. 

“Consequently, our business activity in Greater China has been around 85% below the prior-year level since Chinese New Year on 25 January.”

It adds while it has also seen some traffic declines in other markets – mainly Japan and South Korea – there has not yet been any major business impact outside Greater China.

“As the situation keeps evolving on a daily basis, the magnitude of the overall impact on our business for the full-year 2020 cannot be quantified reliably at this point in time. We will provide more details when we release our full-year results on 11 March.” 

The update from Adidas comes after German sportswear company Puma warned yesterday (19 February) its first-quarter results will likely be affected by the impact of the coronavirus outbreak.

The firm has closed more than half its stores in China and says business in other Asian markets have also been affected by the decline of Chinese tourists. However, it remains optimistic about hitting its full-year targets.

Click here for additional insight on the coronavirus outbreak: Is coronavirus a threat to the clothing industry?

Related Companies

Free Whitepaper
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What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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