Sportswear giants Adidas and Puma have suffered a drop in sales in China as a result of coronavirus and warned the disruption would impact other markets.

Adidas warned that sales in the first quarter of its financial year would slump as much as €1bn (£870m) in Greater China alone, and around €100m in Japan and South Korea.

Adidas, which makes around a third of its sales in Asia and relies heavily on factories in the continent, said the collapse in revenue would wipe between €400m and €500m from its operating profit.

Meanwhile, rival Puma was forced to scrap its financial guidance after admitting it could not “quantify the negative effect” of the virus on sales and profitability.

It cautioned that “a short-term normalisation” in terms of footfall and sales was unlikely.

Puma said in a statement: “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.”

The warning comes as a number of sporting events around the world have been cancelled, postponed or played behind closed doors without spectators.

Questions have already been raised around whether other major events, such as the Olympic Games in Tokyo or football’s European Championships, due to be played at venues across Europe, will take place.

Adidas boss Kasper Rørsted said that if both of those events were to be shelved, it would wipe a further €70m off top-line sales.

Rørsted described the virus as “an uncontrollable force in the marketplace” but insisted it would only cause a temporary setback to performance. He compared the situation to a football match, adding: “We know that the consumer will come back. The second half will also come.” 

Shares in Adidas and Puma fell 9% and 5% respectively last night, while shares in market leader Nike fell 3%. Nike had already warned of the impact of coronavirus last month.

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