• Loading stock data...
Thursday, February 22, 2024
Register Now for Future of Sports: Cybersecurity

Nike, Adidas Face Supply Chain Threats

  • A surge in COVID-19 cases in Vietnam has caused a massive labor shortage in Vietnam, leading to supply chain issues for Nike and Adidas.
  • The world's largest athletic shoe maker is facing a labor shortage of around 40,000 workers.
person_tying_nike_shoes
Nike/Design: Alex Brooks

The world’s biggest athletic shoe manufacturer — which works with Nike and adidas — is facing massive labor shortages in Vietnam related to the pandemic.

Around 40,000 workers did not return to a Ho Chi Minh City facility owned by Taiwanese company Pou Chen Corp. when it reopened on Wednesday. The facility closed in July due to rising COVID-19 cases.

Nike could lose up to 160 million pairs of shoes due to factory closures in Vietnam, which normally supplies around half its shoes.

Both Nike and adidas are coming off strong quarters.

  • Nike posted $12.2 billion in revenue in the first quarter of fiscal 2022 — a 12% rise from the same period the previous year.
  • Adidas’ quarterly revenue rose 51% year-over-year in Q2 to $6 billion, bouncing back with $470 million in net income after a $349 million loss in Q2 2020.

After having very few recorded COVID-19 cases through April, the virus surged in Vietnam in September, with active cases peaking at over 225,000. The Southeast Asian nation has just under 100 million people.

Active cases dropped precipitously over the last week to 48,126 on Thursday.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Exterior of Nike Company Store

Nike to Lay Off 2% of Its Workforce in Cost-Savings Effort

The sportswear giant hinted at staff cuts in a December earnings call.

Tiger Says He ‘Doesn’t Want’ Iconic ‘TW’ Logo. Could He Get It Back?

Tiger Woods won’t use the “TW” logo on merchandise anymore.
Sponsored

Live Sports Are Now High-Tech Experiences

Oracle is leading the technology revolution happening in stadiums across the world.
Sponsored

NASCAR Capitalizes on the Sportswear Boom in a New Deal With ’47

With the new partnership between ’47 and NASCAR, racing fans can express their love like never before.
podcast thumbnail mobile
Front Office Sports Today

The Company That’s Selling Inspiration

0:00
0:00

Featured Today

Sabrina-Steph Wasn’t the ‘Battle of the Sexes’—But It Was Part of the Bigger War

The competition could play a factor in increasing the WNBA’s media value.
NASCAR Cup Series driver Bubba Wallace (23), in a Star Wars rebel alliance X-wing fighter pilot-inspired race suit, motions to the crowd to get louder during the driver introductions for the Cup Series Championship race at Phoenix Raceway in Avondale on Nov. 5, 2023.
February 17, 2024

Celebrity Owners, International Ambitions, and $7B Media Deals: Welcome to the New NASCAR

NASCAR boldly keeps pace with the increasingly competitive sports and entertainment world.
February 16, 2024

Wilson Introduced an Airless Basketball for $2,500. We Had Questions

The black, 3D-printed ball appeared in last year’s Slam Dunk Contest.
Emily Henegar, a baker and content creator, made a batch of NFL-inspired cookies featuring Taylor Swift and Travis Kelce.
February 11, 2024

The ‘Life-Changing’ Economy of Taylor Swift’s NFL Outfits

Appearing in Swift’s game-day wardrobe has been “life-changing” for small businesses.

Careers

Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Finance Manager
FanDuel
New York, NY
Senior Technical Artist - Sports Technology
EA Sports
Orlando, FL
Assistant Manager, Affiliate Operations
Adidas
Portland, OR

Caitlin Clark Passes Shedeur Sanders To Top Fanatics’ NIL-Era Sales

The Iowa guard took the spot hours after her record-breaking game against Michigan Thursday.
December 4, 2023

How the $1B Golf Ball Industry Might Add a Few Strokes To Your Game

A distance roll back is set to be coming to golf balls.
December 21, 2023

Nike Loses Jokić, but Posts Earnings, Income Increases

Denver Nuggets superstar embraces upstart Chinese brand 361 Degrees.
Sponsored

Live Sports Are Now High-Tech Experiences

Oracle is leading the technology revolution happening in stadiums across the world.
November 25, 2023

Sports Apparel Giants Looking For Holiday Season Turnaround

Once-surging category enters the critical selling period mired in a slump.
November 21, 2023

Upbeat Dick’s Earnings Counter Slowdown In Sports Apparel Market

Surprise earnings beat contrasts from other recent results in the category.
November 20, 2023

Messi Set To Challenge For Another Off-Pitch Record

Messi’s World Cup jerseys are headed for auction.
October 12, 2023

Liverpool Facing Further Stadium Delays Amid Shifting Financial Future

Liverpool is expanding its stadium capacity to 61,000.