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IPFS News Link • Business/ Commerce

Adidas' China Business Activity Crashes 85% Due To Virus Shock

• by Tyler Durden

One week later, German sportswear maker Adidas has warned the virus outbreak across China, forcing dozens of cities to close with 400-700 million people in quarantine would severely impact sales in 1Q.

Adidas generates more than a third of its sales in Asia, which has been a significant growth market for the apparel company in the last decade. The region is also home to factories of the company that could still be shuttered.

Adidas expects lower shopping traffic for mainland China, South Korea, Japan, and other Asia Pacific countries, reported Reuters.

It said mainland China sales dropped 85% year-on-year over the Lunar New Year holiday as many of its 12,000 franchise and 500 corporate stores were closed for virus containment purposes. There's no word on the status of the stores until next month.