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2/19/2020, 1:03 PM (Source: TeleTrader)
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Adidas says virus-crippled China business fell 85%

Adidas AG's business activity in China slumped 85% on an annual basis since Lunar New Year on January 25 due to "pronounced traffic reduction within the remaining store fleet" that was caused by the coronavirus outbreak, the company said in a statement on Wednesday.

German manufacturer's products are selling from around 12,000 stores in China while almost a fifth of its goods come from China-based plants and workshops. The world's second-largest economy is considered an important market for Adidas' sales as it accounted for 20% of the firm's total sales in 2018.

Meanwhile, Puma's business in China suffered as well since more than half of its stores were closed due to the virus spread. As the company's Chief Executive Bjorn Gulden claimed, German footwear and apparel producer "should be able to fulfill February and March orders with a three-week delay."

Baha Breaking News (BBN) / GA