In reporting FY19 results earlier today, the Three Stripes confirmed its FY20 outlook of 6 to 8 percent currency-neutral growth, and affirmed that the temporary challenges from the coronavirus will impact first quarter revenues and profitability by $500 million or more.

In a Bloomberg TV interview, CEO Kasper Rorsted said sportswear demand will take longer to recover from the impact of the epidemic than other consumer goods. But, added, “viruses will pass” — and said that he is not panicking, despite forecasts that see the company’s sales drop in China by 1 billion in the current quarter after an 80 percent February sales decline in Asia.

Other key developments from the company’s FY19 report:

• Direct-to-Consumer, including e-commerce, now accounts for 33 percent of total revenues versus 30 percent in FY18. Year-over-year e-commerce revenues rose 34 percent in FY19, and the company remains focused on reaching 4 billion euros in total sales from the channel. That objective will be reached through investments in consumer insights and the creation of premium shopping experiences.
  

• North America, where FY19 revenues rose 7.6 percent on a currency-neutral basis to the equivalent of $5.95 billion, remains a strategic priority. Sport-inspired footwear sales increased mid-single digits; Sport Performance sales were up low-single digits. One objective is to reach 5 billion euros in revenues for the adidas brand in FY20. The market’s currency-neutral revenues are forecast to rise in the low-single digit range this fiscal year.
  

• Sees increased efficiency in manufacturing and speed-to-market capabilities benefitting sales growth and inventory levels going forward, enabling it meet consumers’ demands faster and more precisely.
  

• Reebok’s North American sales rose 12 percent on a currency-neutral basis to the equivalent of $543 million in FY19 as the company rebranded parts of its business, shortened go-to-market timelines and built new platforms to drive e-commerce growth.
  

• Adidas AG’s global revenues rose 7.9 percent in FY19 to the equivalent of $26.5 billion as currency-neutral footwear sales increased 4 percent and apparel sales, fueled by a double-digit jump in Sport Inspired, rose 7 percent on currency-neutral basis.