German sportswear retailer Puma has warned of a negative impact on its Q1 total sales from the coronavirus (COVID-19) outbreak in China.
In its financial results, Puma reported its full-year 2019 sales increased by 18% to € 5,502m.
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The earnings before interest and taxation (EBIT) rose by 30.5% to €440.2m.
The retailer noted that the outbreak of coronavirus (COVID-19) has hit the company’s business since the start of February.
Puma has temporarily closed more than half of its own and its partner stores in China.
The fall in tourism traffic has also impacted the company’s business in other markets, mainly Asia.
As of now, Puma cannot provide an estimated figure on the total impact of the business due to the unpredictable nature of COVID-19 outbreak.
Puma chief executive officer Bjørn Gulden said: “After a good start into 2020, February has of course been negatively affected by the outbreak of COVID-19. The business in China is currently heavily impacted due to the restrictions and safety measures implemented by the authorities. Business in other markets, especially in Asia, is suffering from lower numbers of Chinese tourists.
“Given the current uncertainty around the virus it is of course impossible to forecast its impact on the business. We will do everything we can in the short term to minimise the damage and remain very positive in the long-term both for our industry and for Puma.”
Adidas has also reported a slump in its sales, according to CNBC.
The retailer will provide more details about the financial impact from coronavirus in its full-year results on 11 March.
Death toll due to Coronavirus (Covid-19) has reached 2,128, including two deaths in Iran and two deaths of passengers from Diamond Princess, while confirmed cases have reached 75,725 as of the end of 19 February.