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

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

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.

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