German sportswear brands Adidas and Puma warned Wednesday of a huge drop in sales in China due to the coronavirus and stated while there had early signs of improvement there, the impact had spread to other markets.
Stocks in Adidas and Puma, already pummelled in the last few weeks, had been down 6% and 4.4% respectively. Shares in market leader Nike, which warned in February of a blow from the coronavirus, had been down 3%.
Adidas stated it expected first-quarter sales to drop by as much as 1 billion euros ($1.1 billion) in greater China and working revenue to pummel by 400-500 million euros.
Adidas and Puma make nearly a third of their sales in Asia, which has been a significant growth marketplace for sporting items in recent years and a driver of earnings.
The region is also the central sourcing hub, with China a leading manufacturer for both corporations.
Adidas stated it anticipated group Q1 sales to fall over 10%, along with the China hit and a plunge of some 100 million euros in Japan and South Korea, and assuming the rest of the world progresses at a currency-impartial 6% to 8%.
Puma stated it no longer anticipated its business would return to normal soon, despite encouraging indicators coming out of China, adding it was deserting the 2020 guidance it gave on February 19 that had assumed the crisis would be short-lived.