Adidas to Close Stores in China Due to Coronavirus
February 05 2020 - 7:04AM
Dow Jones News
By Ulrike Dauer
FRANKFURT--German sporting goods maker Adidas AG (ADS.XE) is
closing a substantial number of its stores in China due to the
coronavirus epidemic.
"We are implementing the applicable local guidelines of Chinese
authorities, which includes the closure of a significant number of
our own businesses in the country," a spokeswoman said.
Adidas operates about 500 of its own stores in China. Including
franchise stores, there are about 12,000 Adidas stores in the
country. Many franchise stores are also closing due to the virus,
the spokeswoman said.
"We are currently experiencing a negative impact on our business
in China," she said, but "at this stage it is too early to assess
the extent of the impact."
In 2018, Adidas had revenue of 4.5 billion euros ($4.97 billion)
in China, roughly 20% of its group revenue.
On Tuesday, Nike Inc. (NKE) also said it would shut down stores
in China in response to the virus and warned that its financial
results would be affected.
Nike didn't specify the financial impact but said it had closed
down about half of Nike-owned stores "with corresponding dynamics
across our partner stores."
Write to Ulrike Dauer at ulrike.dauer@wsj.com
(END) Dow Jones Newswires
February 05, 2020 06:49 ET (11:49 GMT)
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