Nike has warned that some of its products may, in the short term, not be available immediately. The sports equipment manufacturer is indeed suffering the full brunt of the closure of supplier factories in Vietnam and Indonesia.
The problems of congestion in transport are also involved. “The lost weeks of production, combined with longer transit times, will lead to a shortage of stocks in the market over the next few quarters,” the group’s chief financial officer, Matt Friend, told a conference. telephone.
In June, Nike had already announced that it expected the transport of its goods to be affected for several quarters, but the situation “worsened further” from June to August, according to Matt Friend. Delays are piling up, there is a lack of containers and staff. It took about 40 days to transport a product from Asia to North America before the pandemic, today it takes 80.
The group has also had to deal with the closure of factories of several Asian suppliers over the past three months. Activity has resumed in Indonesia but “almost all factories manufacturing shoes remain closed” in Vietnam, said the chief financial officer. Almost half of the factories making clothing have still not restarted.
Still very high demand
Nike has therefore lowered its forecast and expects sales growth of around 5% for its accounting year ending at the end of May 2022, compared to 10% to 15% previously. According to the company, the inventory situation should improve as the next financial year approaches.
The comma brand, which suffered during the pandemic of the closure of stores and the suspension of sporting activities, at the same time saw its turnover increase by 16% to 12.25 billion dollars. It was driven by sales in its stores, and the continued growth of online sales.
Demand for Nike products remains “incredibly high,” said Matt Friend. “Our results for the first quarter would have been even stronger if we had not had to deal with supply chain congestion” which led to a “lack of available products”.