In an earnings call, the activewear giant said that its imports have declined by 39 percent due to port congestion.
By Michael McGrady, Maritime Direct Americas & Pacific Correspondent
BEAVERTON, Oregon — The iconic American activewear and apparel manufacturer, Nike, announced that the company continues to experience severe strain on inventory and points of sale. In an earnings call, chief financial officer Matt Friend said that the issues impacting its supply chains were about to culminate into future earnings loss.
“Starting in late December, container shortages and West Coast port congestion began to increase the transit times of inventory supply by more than 3 weeks,” said Friend. “The result was a lack of available supply, delayed shipments to wholesale partners, and lower-than-expected quarterly revenue growth. We expect to capture this delayed revenue in the fourth quarter.”
Supply Chain Dive reports that the impacts of the port congestion have led to a 39 percent drop in imports. That report cited data from S&P Global’s Panjiva Supply Chain Intelligence showing that Nike’s imports slid by 29 percent year-over-year for the three months up until February 28, and were again down 39 percent year-over-year for the month of February.
“In Q3, disruption in the global supply chain due to container shortages, transportation delays, and port congestion has interrupted the flow of inventory supply,” Friend adds. “The result has been supply shortages relative to continued strong marketplace demand.”