RELATED: The Latest Major Shortage Is Happening at the Worst Time Possible. Nike has been hit by a series of supply chain problems, from shipping container shortages to a lack of workers, that is likely to create a shortage of the brand’s products, CNN reported. The popular sportswear company warned customers on an earnings call on Sept. 23 that these issues will impact the production and delivery of its goods around the world through Spring 2022.ae0fcc31ae342fd3a1346ebb1f342fcb “We are not immune to the global supply chain headwinds that are challenging the [manufacturing] and movement of product around the world,” Matthew Friend, Nike’s chief financial officer, said on the earnings call, per CNN. “We expect all geographies to be impacted by these factors.” RELATED: Walmart Is Getting Rid of This Effective Immediately. According to Business Insider, Nike is also facing issues with strict pandemic lockdowns in Vietnam, where the sportswear company does a lot of its manufacturing. Vietnam imposed new restrictions in July and August, as COVID cases skyrocketed in major manufacturing hubs through the country, Reuters reported at the time. Factories for companies like Abercrombie & Fitch, Urban Outfitters, and Nike have seen extended closures as a result, heavily disrupting their production timelines, according to Axios. Friend said Nike has lost 10 weeks of production in Vietnam so far. “Lost weeks of production combined with longer transit times will lead to inventory shortages in the marketplace for the next few quarters,” Friend confirmed on the call, per Business Insider. David Swartz, a Morningstar Research equity analyst who covers Nike, told Yahoo! Finance on Sept. 24 that the demand for Nike products is at an all-time high right now, which could present a problem for the company if they can’t deliver due to shortages. “I do think that demand for Nike’s products right now is very high, and the demand for all athletic apparel and footwear is high and has been high for, really, the last year-plus,” Swartz explained. “But it is a problem that if there are popular styles that are sold out, then consumers might buy other products from other producers, and that could, in time, prove to be a problem for Nike,” he added. RELATED: For more retail news delivered straight to your inbox, sign up for our daily newsletter. During the earnings call, Nike confirmed that holiday production and delivery times have already been impacted by the issues with shipping containers, workers, factory closures, and high demand, per NBC. And this is something the company has already indicated online. “We’ve temporarily extended some delivery timeframes. The extended timeframes will be reflected in the estimated delivery date shown at checkout,” Nike says on its site. The company adds that customers might experience additional delays and disruptions with their Nike orders, as Nike fights supply-chain issues and focuses on the well-being of its employees. “In addition, please be aware that due to circumstances beyond our control some orders may be delayed beyond the estimated delivery dates,” the sportswear retailer notes. RELATED: These Popular Brands of Liquor Are Becoming Impossible to Find, Experts Say.
