Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

Trail running shoes are seen at the booth of Adidas during the ISPO trade fair for sports equipment and fashion in Munich, Germany, on Jan. 26, 2020.

Michael Dalder/Reuters

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.

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 per cent year-on-year in the period since Chinese New Year on Jan. 25. China accounted for 20 per cent of Adidas sales in 2018.

Story continues below advertisement

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 per cent.

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 normalize 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 fulfill February and March orders with a three-week delay,” he said.

Story continues below advertisement

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 per cent 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 per cent.

“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.”

Coronavirus information
Coronavirus information
The Zero Canada Project provides resources to help you manage your health, your finances and your family life as Canada reopens.
Visit the hub
Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies