In recent weeks, Nike stock has been trending sharply south. From its high on Aug. 6, 2021, Nike stock has since fallen 15 percent.
NIKE Inc. is an American sporting goods manufacturer that is one of the world’s best-known suppliers in the industry. The company’s business activities focus on the design, development and distribution of high-quality sports equipment. This includes shoes, clothing, sports equipment and aids as well as accessories. The Group is one of the largest retailers of sports footwear and apparel and markets its products worldwide through wholesalers, retailers, brand stores, the Internet and intermediaries. The various products in the range are produced by external contractors, mainly outside the USA. Equipment is manufactured both outside and in the US. In cooperation with its subsidiaries and affiliates, NIKE, Inc. covers. a wide range of the sports segment. In addition to sporting goods, the Group also produces various lifestyle products that are oriented towards the sporting style of the professional range.
Nike makes about half of its shoes and 30 percent of its sportswear in Vietnam, according to earlier data. In light of the plant closures, some production has been shifted to plants in China and Indonesia, Friend said. However, due to congestion in global supply chains, finished goods currently take 80 days to get from Asia to North America – about twice as long as usual.
In view of the current development, Nike has now also lowered its sales forecast for the entire fiscal year. Instead of double-digit percentage growth, only single-digit growth is expected.
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