Puma’s sourcing not severely impacted by coronavirus

Worldwide
Published:  12 March, 2020
Credit: Puma

The international sportswear manufacturer has provided an update on its activities since the COVID-19 outbreak.

Puma said COVID-19 has negatively impacted its business since the beginning of February both in terms of sales and sourcing, but China accounts for less than 20% of its international sourcing volume and factories outside China have not been impacted. “Within China, all of our Tier 1 (finished product) supplier factories are open again and are operating at 80%-100% of capacity. Almost all of our Tier 2 (material) factories are also up and running”, said Puma in a statement released on March 11, adding that its outbound logistics are largely in operation with all sea ports now open and most of its transportation on land, from the factories to the sea ports, functioning normally again. “Therefore, our global supply chain is currently not at risk apart from minor delays”, said the sportswear company.

In China, where most of Puma’s owned and operated as well as partner stores were temporarily closed in February due to restrictions imposed by local authorities, sales are reported to have been severely affected but there are now early signs of improvement. Other Asian markets such as Singapore, Malaysia, Japan and South Korea, which typically benefit from Chinese tourists, continue to see heavy negative effects on sales. Despite the spread of COVID-19 in Europe, almost all of Puma’s stores there remain open with significantly lower footfall.