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Recently, some investment institutions have analyzed and stated that since this year, supply chain problems caused by the impact of the epidemic in Vietnam may become the main problems faced by Nike in the second half of the year.

Since Nike released its performance report on June 24, due to the new crown epidemic in Vietnam, a large number of factories have been closed and suspended, and the supply chain has been severely disrupted. At the same time, supply chain problems are getting worse.

Nike said in its latest earnings report that the supply chain problems currently faced by Nike may continue until 2022. In this regard, BTIG said that at this stage, Nike’s supply chain problems are very serious, which may affect Nike’s holiday shopping season sales.

For Nike, from the beginning of the holiday shopping season until next spring, due to the impact of the epidemic, the factory cannot provide production capacity, which may result in the cancellation of a large number of Nike orders; Nike warehouses are no longer available, and the delivery of existing orders is also continuously delayed. .

Affected by severe damage to the supply chain, Nike is now facing an out-of-stock crisis.

According to Nike, the Nike branded shoes produced by the Vietnam contract factory in 2020 accounted for about 50% of its total sales; in the second quarter of 2021, Nike's seaborne imports accounted for 49% of products from Vietnam; as of June 30 this year , Footwear accounts for 82% of the total purchases.

According to the analysis of the situation facing Nike by relevant analysts, due to the shutdown of the Vietnamese foundry, the production can not be produced for nearly two months; according to the analysis of the production capacity of the previous factory, Nike will lose about 40 million pairs every month this year. Shoes, in the worst-case scenario, Nike may have 160 million pairs of shoes that cannot be delivered on time this year.

Vietnam's epidemic is difficult to control and alleviate in a short period of time. For Nike and other major brand foundries and shoe factories, an important way to alleviate the supply chain and capacity crisis is to transfer manufacturing operations.

Nike's supply chain crisis has also had a certain impact on its stock price. As of the close of trading on the afternoon of the 13th, Nike's stock price fell 2.49% to $159.53, down nearly 5% in the past month.