What Is The Impact Of The Black Swan On The Sports Industry?

At the moment, many brands choose to close their stores, so that sales are almost plummeting.

2020 in the first year of development, which was originally placed in the sports industry, many sports brands were thinking of holding a new round of development peak with the holding of the Tokyo Olympic Games. However, they did not want to be hit by a "pause key" by a new crown pneumonia outbreak, almost in a state of suspension.

At the moment, many brands choose to close their stores, so that sales are almost plummeting. As a sports brand, the foundry has not been able to escape the influence.

A few days ago, the net profit of Nike Yuyuan group in March 2020 was $672 million, which was 23.65% lower than that of the same period last year. As of March 31, 2020, the total net operating income of Yuyuan group was about 1 billion 970 million US dollars, down 20.56% from the same period last year.

Yuyuan group reported in February that affected by the outbreak of the epidemic, some of its production lines had been delayed to varying degrees, resulting in a certain impact on their performance.

Nike and Adidas's largest retail partner in China, Baosheng international, net income in the first quarter of 2020, was about 4 billion 945 million 400 thousand yuan, down 25% compared to the same period last year. The net income of comprehensive operation in March (equivalent to total sales reduction sales discounts and sales returns) was about 1 billion 518 million 600 thousand yuan, down 35.4% from the same period last year.

In its 2019 annual earnings report, Adidas said its revenue in the Greater China region decreased by about 80% compared with the same period last year. In the first quarter of fiscal 2020, the revenue of the Greater China region will be reduced by 800 million euros to 1 billion euros, and the operating profit will be reduced from 400 million euros to 500 million euros.

Andemar, who originally wanted to increase revenue in 2020, was also suffering from the "black swan". Andrew forecast that the first quarter of fiscal year 2020 will lose 5000-6000 US dollars due to China's epidemic, and its overall revenue will decline by 13%-15% compared with the same period last year, and warned that if the situation worsens, the losses will increase.

To ease the impact of the epidemic on the brand, Andrea borrowed $700 million from the existing $1 billion 250 million revolving credit facility, which will increase cash position and maintain liquidity.

Nike released quarterly results from December 1, 2019 to February 29, 2020, showing that profits fell 23% to 847 million US dollars over the same period, and the market expected US $948 million. In the third quarter, Greater China revenue fell 4% to 1 billion 506 million US dollars.

The Tokyo Olympic Games were postponed to 2021, and NBA suspended all the remaining 2019-2020 seasons. Many large sports events were postponed or even cancelled, and those sports brands that invested in sports stars and sports events and sports marketing lost the sales bonus.

First of all, Arthur, the sponsor of the Tokyo Olympic Organizing Committee's only official sports brand, originally planned a series of related Olympic marketing campaigns in early March, but received the news that the Olympic Games were postponed. Arthur is facing the unmarketable fate of the joint Olympic Games running shoes and the Tokyo series products launched by the Tokyo Olympic Games.

Sports brands such as Adidas and Nike also need to put aside the Olympic marketing plan. Consumers' attention and influence on brands also have a certain decline.

In 2020, an epidemic, sports brands announced the closure of shops, sales pause, so that the brand and consumers "contact point" is greatly reduced.