Nike lowers expectations due to supply issues

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Due to the corona pandemic and the global transport crisis, Nike is facing serious supply problems. The sportswear giant warns that some of its products may not be available at short notice.

 

Vietnam

The problems are the result of forced factory closures on the one hand and delays in the transport sector on the other. A large part of the production comes from Vietnam, and there the factories are still closed due to corona. In Indonesia, however, production has resumed. According to financial director Matt Friend, ten weeks of production have already been lost.

 

The transport problems, which the company warned about earlier, have increased in the meantime. In recent months, transport time has doubled due to delays in ports and a shortage of containers and personnel.

 

The combination of both factors will lead to a shortage of stocks in the next trimesters, Friend said in a conference call. As a result, the company has lowered its sales expectations and is now assuming 5% growth. Previously, the sports label was expecting an increase of 10 to 15%.