Adidas saw its business in the greater China area drop by about 85 per cent year on year in the period since Chinese New Year. The German sportswear maker expects first-quarter sales to drop significantly in greater China due to the Coronavirus (COVID-19). China accounts for 20 per cent of Adidas’ sales. The brand sells its products from about 12,000 stores in China, most of them franchises, about 500 of its own stores. Almost a fifth of its shoes and apparel are produced in China. But now, Adidas has cancelled all shipments to wholesale partners in China and plans to clear excess inventory through its own channels during the rest of the year.

Adidas has forecasted currency-neutral sales to increase by between six per cent and eight per cent for the full year and for its operating margin to rise by between 10.5 per cent and 11.8 per cent. It remains fully confident about its future growth prospects due to its strong positioning in an attractive industry despite the temporary challenges posed by the coronavirus outbreak.

Fourth-quarter sales rose a currency-adjusted ten per cent. Currency-neutral sales grew 18 per cent in greater China, ten per cent in North America and 14 per cent in Europe.