Billions Lost as Retailers Feel the Impact of Coronavirus
- Adidas warns sales in Greater China could decrease by €1bn due to coronavirus outbreak
- Sales down by €100m in Japan and South Korea, leading to a loss of €400m-€500m operating profit
- Adidas makes around a third of its sales in Asia
- CEO Kasper Rorsted: ‘We cannot yet reliably quantify the magnitude of the overall financial impact’
- Puma also issues profit warning due to COVID-19 impact on business
- Sales severely affected by temporary closures and restrictions imposed by local authorities
Sportswear giants Adidas and Puma have both been hit hard by the coronavirus outbreak, with Adidas warning that sales in Greater China could decrease by up to €1bn. The company also reported a drop of €100m in Japan and South Korea, leading to a loss of €400m-€500m in operating profit. Around a third of Adidas’ sales come from Asia, with CEO Kasper Rorsted admitting they cannot yet quantify the overall financial impact. Puma has also issued a profit warning due to COVID-19 affecting business since February, causing temporary closures and restrictions. Both companies are feeling the strain as the virus spreads globally.
Factuality Level: 10
Factuality Justification: The article provides accurate information about the financial impact of the coronavirus on Adidas and Puma’s sales in various regions, including Greater China, Japan, South Korea, and other Asian countries. It also includes quotes from CEO Kasper Rorsted and mentions the temporary closures due to restrictions imposed by local authorities.
Noise Level: 3
Noise Justification: The article provides relevant information about the financial impact of the coronavirus on two sportswear companies, Adidas and Puma, but it does not delve into any in-depth analysis or offer actionable insights beyond stating that the situation is ongoing and uncertain. It could benefit from more context or data to support its claims.
Financial Relevance: Yes
Financial Markets Impacted: Adidas and Puma’s stock prices, retail industry in Asia and potentially worldwide
Financial Rating Justification: The article discusses the financial impact of the coronavirus on two major sportswear companies, Adidas and Puma, which affects their sales and operating profit. This has implications for their stock prices and the retail industry in affected regions, as well as potential wider effects on other companies in similar sectors.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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