Source: CCTV Finance and Economics
According to the South African News24 website reported on the 26th, the supply chain disruption caused by the epidemic has also spread to the global clothing and footwear industry.
Nike IncMatthew Flanders, chief financial officer of the companyIt was said in a recent teleconference that due to the surge in COVID-19 cases, Vietnam, Nike Inc's main overseas production place, imposed a nationwide blockade.As a result, the company has lost 10 weeks of production time in Vietnam.Coupled with the extension of shipping timeThe company will face a shortage of inventory in the next few quartersBut demand remains strong, all of which will hit sales in the coming holiday shopping season.
It is understood that more than half of Nike Inc's footwear and about 1/3 of his clothing production are in Vietnam. At present, about 80 per cent of the company's footwear factories and about half of its clothing factories in southern Vietnam are still closed. Although the local government recently announced that it plans to lift the blockade next week, it is not clear when the factory will resume full production.
Nike Inc cut its revenue forecast for fiscal 2022 due to factors such as supply chain and labor shortage. Nike Inc reported revenue of $12.25 billion for the quarter ended Aug. 31, below analysts' expectations of $12.47 billion. As a result, Nike Inc's share price is now down about 9 per cent from its high in early August.