• Loading stock data...
Thursday, October 10, 2024
The Best Employers in Sports survey is now open! Take the survey

Sports Retailers Hit By Vietnam Factory Closings

Nike/Design: Alex Brooks

Vietnam has been forced to shut down several retail manufacturing facilities due to COVID-19 outbreaks, forcing many sports retailers to consider looking elsewhere.

The country is the second-largest supplier of shoes and apparel to the U.S. behind China.

  • Adidas sources 28% of its product from Vietnam, but the company said in late August that most of its factory capacity hasn’t been available since mid-July, contributing to $600 million in lost sales.
  • Nike could lose an estimated 160 million pairs of shoes due to its Vietnam facility closures, according to research firm BTIG. Ahead of the company’s earnings report on Thursday, analysts have downgraded their estimates on full-year sales.
  • Reports suggest Dick’s Sporting Goods will be negatively affected by Nike’s problems. Wells Fargo analysts favored Academy Sports over Dick’s based on its H2 outlook.

Supply-chain experts say the shutdowns will further increase prices of goods — shoe prices rose 4.6% year-over-year in July. Adidas already said it will look to raise prices.

It could be “at least 12, if not 18 months before supply chains get back to the state of equilibrium,” says Nick Vyas, co-founder of the USC Marshall Center for Global Supply Chain Management. 

Per Our World in Data, only 6.6% of Vietnam’s population had received two vaccination doses, and 21% had received one, as of Sept. 18.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Nike

Nike Has Lost Some Mojo. But Not Its Market Share

Nike is in recovery mode but still enjoys a dominant slice of the market.

Nike CFO Says ‘Adversity Creates Sharper Focus’

Amid a downbeat but expected set of earnings, Nike says it sees signs of optimism.
Sep 30, 2024; El Segundo, CA, USA; The Nike shoes worn by Los Angeles Lakers guard Bronny James during media day at the UCLA Health Training Center.

Nike Avoids Surprise With Expected 10% Sales Dip

New Nike CEO Elliott Hill starts his role Oct. 14.
Bryce Harper

MLB Says It Will Reverse Two Widely Hated Uniform Changes

Some jerseys will go back to regular font and number size from 2023.
podcast thumbnail mobile
Front Office Sports Today

Patriots Hit Rock Bottom; WNBA Finals Begin

0:00

Featured Today

Duante' Abercrombie News Ch.4 interview

Tennessee State’s Ambitious Plan to Launch an HBCU Hockey Program

TSU has big plans, but the university is facing an existential dilemma.
October 8, 2024

Ryan Smith Sees Salt Lake City As Next Vegas-Like Sports Town

Utah Hockey Club’s owner says all the pieces are falling into place.
October 8, 2024

How the WWE’s Farm Circuit Became a Primetime Draw

NXT produces generational talent—and it occupies a new prime-time network slot.
A DraftKings sign
October 7, 2024

A DraftKings Exec Left for Fanatics. Then the Bitter Legal Battle Began

Mike Hermalyn has been sidelined at Fanatics for nine months now.
October 3, 2024

Augusta National Confirms Hurricane Damage, Masters Still on Schedule

The local community is still dealing with power and water outages.
October 9, 2024

Tropicana’s Down, Now the Hard Part: Funding the A’s $1.5B Vegas Ballpark

The 67-year-old hotel is imploded to clear the way for a planned ballpark.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
Intuit Dome
September 30, 2024

The Clippers Will Run the Only Bar in California Open Until 4 a.m.

Selling alcohol is illegal past 2 a.m. in California, but not at the Intuit Dome.
September 24, 2024

A’s Begin Final Oakland Series Amid Anger, Sadness, and Uncertainty

Security will be heightened for the team’s final home series.
An artistic rendering of the new proposed Buffalo Bills stadium.
September 23, 2024

NFL Stadium Sagas Highlighted by Monday Night Doubleheader

The Bills are building a new $1.7 billion stadium in Buffalo.
September 20, 2024

Jason Kelce Blasts 76ers Chinatown Arena Plans: ‘I Really Hate It’

The new arena could displace residents in Philly’s Chinatown.