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February 20, 2020

Puma warns of negative impact on Q1 sales from coronavirus

German sportswear retailer Puma has warned of a negative impact on its Q1 total sales from the coronavirus (COVID-19) outbreak in China.


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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.

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.

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.