Just (can't) do it: Nike's supply chain is struggling

Not yet a subscriber? Sign up free below.

Nike's supply chain is having some trouble "just doing it" at the moment, sending shares of Nike down more than 5% in pre-market trading.

The sneaker giant's latest quarterly results, which we've visualized above, showed more than $12bn of revenue, and more than $2bn of operating profit (before taxes). Those numbers were actually not too bad, but it was Nike's talk of the future that spooked investors — as is so often the case.

Sneaker supply

Since mid-July the company has been working through factory shutdowns in Vietnam, where the company makes 51% of its footwear and 30% of its apparel, as Covid mitigation policies in the country have completely disrupted manufacturing there.

Those manufacturing woes now seem to be getting worse, with the company anticipating that its entire business will see some kind of short-term inventory shortages over the coming quarters. Even the most well-funded marketing teams (Nike's had $918m to play with last quarter) need a product to sell.

Not yet a subscriber? Sign up free below.

Tags

Stories from this newsletter

Just (can't) do it: Nike's supply chain is struggling
Content is king: Netflix is spending big cash on content again
Crime: Last year the murder rate rose almost 30% in the US
We and our partners use cookies and similar technologies (“Cookies”) on our website and in our newsletters for performance, analytical or advertising purposes to ensure you have the best experience on our site and/or interaction with us. To find out more about the use of Cookies, see our Cookie Notice. Please click OK if you consent to our use of Cookies or click Manage my Preferences to manage your Cookie preferences.