At the moment of the epidemic, many brands have chosen to close their stores, causing offline sales to almost plummet.
2020 was originally regarded as the first year for the development of the sports industry. Many sports brands are thinking that they can use Tokyo to The holding of the Olympic Games has ushered in a new round of development peak, but it did not want to be pressed by the “pause button” by the new coronavirus epidemic, almost in a state of shutdown.
At the moment of the epidemic, many brands have chosen to close their stores, causing offline sales to almost plummet. As a sports brand foundry, it has not escaped its influence.
Fashion sports brands encounter performance challenges
Nike and Adidas in China Baosheng International’s largest retail partner, the net operating income in the first quarter of 2020 was approximately 4.9454 billion yuan, a year-on-year decrease of 25%; the comprehensive net operating income in March (equivalent to total sales minus sales discounts and sales returns) was approximately 1.5186 billion yuan Yuan, a year-on-year decrease of 35.4%.
NIKE: Temporarily close 50% of stores
Nike released its quarterly financial report from December 1, 2019 to February 29, 2020, which showed that profits fell by 23% year-on-year to US$847 million, and market expectations were US$948 million; in the third quarter, Greater China revenue fell by 4% year-on-year to US$847 million. US$1.506 billion.
Nike announced that it will temporarily close 50% of its offline stores in the Chinese market to protect the health of employees and consumers. The group’s profit for the next quarter is expected to be lower than expected. At the same time, the Nike brand’s sales performance from mid-January to the end of February 2020 is expected to plummet by 70%. Affected by this news, Nike’s shares fell by 3%. February is the peak season for new shoe sales every year, but due to the epidemic, Nike has postponed the release of many new shoes, and the specific time has not yet been announced.
adidas: A large number of Chinese stores are temporarily closed
Adidas disclosed in 2019 In the annual financial report, it was stated that revenue in Greater China decreased by approximately 80% compared with the same period last year. In the first quarter of fiscal 2020, revenue in Greater China is expected to decrease by 800 million euros to 1 billion euros, and operating profit will decrease by 400 million euros to 500 million euros. .
Sportswear group adidas issued an announcement stating that due to the impact of the new coronavirus pneumonia epidemic, the company has temporarily closed a large number of directly operated stores and agent stores in China, and stated that the epidemic will have an impact on Negative impact on short-term performance.
UNIQLO
The clothing fast-moving consumer goods brand UNIQLO has been temporarily closed. There are 370 stores in China, half of which have been suspended.
Levi’s
The parent company of American denim clothing brand Levi’s recently In a post-earnings conference call, it was stated that the company had closed nearly half of its offline stores in China. Sales from the Chinese market account for about 3% of the total. Levi’s largest flagship store in the Asian market is located in Wuhan, the city at the center of the epidemic, and is currently closed.
Under Armor
Under Armor has temporarily closed its stores in China About 600 offline stores. Affected by the epidemic, Under Armor’s first-quarter performance is expected to decrease by approximately US$60 million.
lululemon closed 38 stores in the Chinese market
Based on the recent epidemic prevention In consideration of the epidemic, sports fashion brand lululemon has temporarily closed 38 stores in China. Lululemon currently has 39 stores in China. According to the brand’s official website, only one store in Nanjing is still in normal operation. Stores in Beijing, Shanghai, Hong Kong, Wuhan and other cities have suspended operations. Lululemon has cooperated with 28 brand sports ambassadors and launched more than 40 live yoga classes to facilitate online interaction with consumers during the store closure period.
Under Armor, which originally wanted to increase revenue in 2020, also suffered a “black swan”, Under Armor predicts In the first quarter of fiscal 2020, sales will suffer a loss of 50-60 million US dollars due to the epidemic in China, and overall revenue will fall 13%-15% compared with the same period last year. It warned that losses will intensify if the situation worsens.
To mitigate the impact of the epidemic on the brand, Under Armor borrowed US$700 million through its existing US$1.25 billion revolving credit line to increase its cash position and maintain liquidity.
The Tokyo Olympics has been postponed to 2021, the NBA has suspended all remaining games of the 2019-2020 season, and many large-scale sports events have been forced to be postponed or even cancelled. Those who invest in sponsoring sports stars and Events and sports brands that bet on sports marketing missed out on sales dividends, which undoubtedly made matters worse.
The first to bear the brunt is ASICS, the only official sports brand sponsor of the Tokyo Olympics Organizing Committee. In early March, it originally planned a series of related Olympic marketing actions but received the news that the Olympics had been postponed. held news. The joint Olympic running shoes and replica Tokyo series products launched by ASICS for the Tokyo Olympics are now facing the fate of slow sales.
Sports brands such as Adidas and Nike.Since Olympic marketing plans have to be put behind the scenes, consumers’ attention and influence on the brand have also declined to a certain extent.
During the 2020 epidemic, sports brands have announced store closures and suspended sales. This has significantly reduced the “contact points” between brands and consumers. </p
