Puma scraps coronavirus guidance as outbreak spreads
German sportswear giant Puma scrapped previous coronavirus guidance this morning, saying that its business will not return to normal in the short term.
Puma had previously said it expected sales and profits to decline in the first quarter after it was forced to temporarily close stores in China, where the outbreak began.
However, today the retailer said that it does not expect “short term normalisation” after the virus hit sales harder than expected.
In a statement the company said: “The outlook we gave on 19 February for the full-year 2020 was based on the assumption that the situation regarding the Covid-19 virus would normalise in the short term.
“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.”
Puma said that sales in China have been “severely affected” after it was forced to close most stores in the country. Most stores have since reopened and traffic started to pick up over the weekend.
Sales in other Asian markets including Singapore, Malaysia, Japan and South Korea have continued to suffer.
Stores in Northern Italy are operating under reduced opening hours, but almost all stores remain open across Europe. However, the brand has still registered “significantly lower” footfall.
Puma added: “The development over the coming weeks and months is impossible to predict and we currently cannot quantify the negative effect this could have on our full-year revenue and earnings.”