Adidas Reports 85% Drop In Sales In China Due To Coronavirus
Leading sportswear brand Adidas has reported a substantial loss in its business in China in recent weeks, citing the deadly coronavirus outbreak as the reason behind it. With that warning, Adidas became the latest addition in the list of Sportswear brands hinting at the possible impact the outbreak is likely to have on the economic front. The outbreak has caused Adidas to shut down most of its stores in China due to low sales since the resumption of services after the Lunar New Year holidays. Asia accounts for approximately one-third of Adidas’ sales and the effect of coronavirus is hurting it badly.
Post the Lunar New Year on 25th of January, Adidas have stated a loss of 85 percent in its business activity when compared to the same period last year. The company also stated that the outbreak is affecting its sales across other Asian countries as well, with a drop witnessed in Japan and South Korea. The company however said that the drop is not as significant as the one they have had across Mainland China. When asked about the overall projection for the year, the company stated that it would be too early to draw any projections based on the coronavirus effect as it expects the outbreak to ease out in the coming days. The company has promised to deliver other details about the coronavirus impact on March 11, when it announces the yearly earnings.
Talking about Adidas, the company had one more feather added to its cap as it was recognised as the best company in the New Sustainable Cotton Ranking for 2020. The list is based on assessment of over 75 companies basis their usage of cotton lint with a threshold value of minimum 10,000 metric ton.