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Nike, Adidas Could Reduce Order Volumes By 40%

  • Nike and Adidas are reportedly expected to reduce their order volumes by 30% to 40% beginning next summer.
  • The reduction is primarily attributed to pandemic-related hurdles in China and companies pulling out of Russia.
Adidas and Nike logos inside of sneaker store
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Order volumes for major sportswear brands are anticipated to decline starting next year. 

Companies like Nike and Adidas are expected to reduce their order volumes by 30%-40% beginning next summer, with both companies reportedly notifying their manufacturing plants.

It’s unclear how long it will last, but some outlets have reported that the volume decrease is expected to continue until the winter — likely resulting in less footwear on the market until summer 2024.

The reduction is primarily attributed to pandemic-related hurdles in China and companies pulling out of Russia. 

  • Russia and Ukraine accounted for less than 1% of Nike’s total revenue. The company permanently exited Russia in June.
  • Adidas suspended its Russia operations in March. The country made up about 2% of its revenue.

The retail market in North America and Europe has seen growth, but is also expected to drop.

In Vietnam and Indonesia, average factory operation rates have already dropped from 82%-84% to 61%.

Purchasing Plans

The decline in order volumes will start after a record Black Friday this year — sales raked in $9.12 billion from online shoppers, with online exercise equipment purchases up 218% year-over-year. 

But the trend may be changing. More than 60% of Americans said the state of the economy was impacting their holiday spending.

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