// Adidas and Puma both experience drop in Chinese sales amid coronavirus outbreak
// The disruption would impact other markets
// Nike warned on the impact of coronavirus last month
Adidas and Puma have both reported a drop in Chinese sales in China thanks to the coronavirus outbreak.
The German sportswear giants have now warned the disruption would impact other markets.
Adidas said sales in the first quarter of its financial year could drop as much as €1 billion (£870 million) in Greater China alone, and around €100 million in Japan and South Korea.
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The retailer generates around a third of its sales in Asia and relies heavily on factories in the region.
The revenue drop could wipe out between €400 million (£347 million) and €500 million (£434 million) from its operating profit.
Similarly, Puma ditched its financial guidance after it could not “quantify the negative effect” of the virus on sales and profitability.
“Given the duration of the situation in China, the negative impact in other Asian countries and now also the spread to Europe and the US, we unfortunately have to conclude that a short-term normalisation will not occur,” Puma said in a statement.
Shares in Adidas and Puma fell nine per cent and five per cent respectively on Wednesday, while shares in market leader Nike fell three per cent.
Nike warned of the impact of coronavirus last month after closing half of its stores in China.
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