Sept 22 (phongkhammayo.vn) - Are sneakerheads in for a rough holiday season?
Nike Inc's (NKE.N) updates khổng lồ its full-year sales outlook on Thursday will likely answer that pressing question for Wall Street as the world's largest sportswear maker đơn hàng with unprecedented supply challenges ahead of the holiday season.
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Three months ago, Nike gave a rosy outlook for the rest of the year as it benefited from consumers splurging on sneakers for running & hiking as they returned to lớn their routines after over a year of staying at home. read more
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Still, some analysts have cut their outlook for Nike's sales, predicting that lockdowns và factory closures in Vietnam, where about half of all Nike footwear is manufactured, will cause shortages during the crucial shopping season.
"We believe the risk of significant cancellations beginning this holiday & running through at least next spring has risen materially for Nike as it is now facing at least two months of virtually no unit production at its Vietnamese factories," BTIG analysts wrote in a note.
Many factories in Vietnam's manufacturing hubs have been shut or are operating with drastically fewer on-floor workers since mid-July as a surge in Delta variant cases forced the government to implement tight containment policies.
Other apparel companies including Abercrombie & Fitch (ANF.N) and Adidas AG (ADSGn.DE) have taken a hit to lớn their businesses due khổng lồ production issues in Vietnam. read more
Some analysts, however, see Nike using its scale khổng lồ offset the sales impact from Vietnam shutdowns.
"The company should be able to lớn mitigate some headwind by shifting production khổng lồ other countries, like China, và prioritizing đứng đầu sellers, key products, & its DTC (direct-to-consumer) channel," Telsey Advisory Group analysts said.
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* Since the start of September, analysts have cut their full-year sales expectations for Nike khổng lồ $49.81 billion from $50.34 billion due lớn worries about supply shortages
* Full-year earnings per giới thiệu estimates have also fallen to lớn $4.24 from $4.33, according to IBES data from Refinitiv
* Nike's revenue for the reporting quarter is expected to have risen 17.7% to lớn $12.46 billion from a year earlier
* The blue-chip stock has gained 11% this year, but is down about 10% from its record high hit in August
WALL STREET SENTIMENT
* The current average analyst rating on NKE shares is "buy", with 28 rating it "strong buy" or "buy", four rating it a "hold" và one rating it a "strong sell".