Adidas loses over a billion dollars in China's market, and Puma gets hit

Periskopi

14 March 2020, 16:57(6 years ago)

German sports clothing companies “Adidas” and “Puma” have warned a major drop in sales in China due to choreography, at the time when there were signs of improving market influence there. Stocks in “Adidas” and “Puma” in recent weeks were down to 10 percent, respectively. Even the shares of the head of the clothing “Nic”, which also warned of the risk from the spread of the coronary, have contributed to a decline of up to 3 per cent. From “Adidasi” predicts that first quarter sales will suffer huge losses of up to 1 billion euros in China, and that overall sales drop by 10 percent, including a drop of about 100m euros in Japan and South Korea, Time broadcasts. <x12 Executive Chief > Addis”, Kasper Rorsted, noting that the highest margin business in China is usually a major contributor to profits, analysts told the group's operational profit would drop by more than 500m euros in the same period. “Addis” and “Puma” are based on the Asia market, which has been a major market of growing sports clothing in recent years. The region is also the main aid centre, with China as a leading producer for industry. “Virus looks worse than we were afraid of”, wrote “Jefferies” analyst James Grzinic, in a letter to “Addis”, adding that information from “Addis” and “Puma” indicate the likelihood of lowering large profits for other vendors. From “Puma” think that it is not expected that its business will soon return to normality, despite the encouraging signs coming from China, adding that it did not abandon the 2020 instructions of February 19, which were supposed to be short - term. In view of the duration of the situation in China, the negative impact on other Asian countries and now the spread of Europe and the US, unfortunately we have to conclude that a short-term normalisation will not happen,” said Grzic. Since the Chinese show late last year, the new coronary has spread worldwide, infecting some 120,000 people, killing nearly 4300 and sending markets into confusion.

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