adidas Predicts a Billion Dollar Loss in Sales Due to Coronavirus

As COVID-19 continues to disrupt businesses, schools and day-to-day life across the globe, adidas has predicted a billion-dollar drop in sales in China due to ongoing Coronavirus concerns. Despite the German brand re-opening half of the 12,000 stores it had closed since January, it also expects an $111m loss in Japan and South Korea, making it the hardest hit sports retailer amid the pandemic.

Now news has dropped that more and more sports events are set to be cancelled, adidas could face even more loss. If the 2020 Tokyo Olympics and Euros are called off, the brand could lose another $78m in sales, with the latter being a particularly big sales driver for the brand with three stripes. However, it’s not all doom and gloom. adidas boasts positive underlying health and isn’t set to make any job cuts to make up for the sales’ loss.

Elsewhere in the sports industry, Nike has reported a 3% loss and PUMA is down by 3.2%. Both brands aren’t optimistic that sales will normalise any time soon as the virus continues to spread, but they’re hoping to be able to level out later on in the year.

Elsewhere in the sneakerverse, see how the industry is being affected by COVID-19 here.