Nike Earnings Miss Drags Adidas, Puma, JD Sports Down

Stock Markets20 minutes ago (Sep 24, 2021 04:31AM ET)

(C) Reuters.

By Geoffrey Smith

Investing.com — Adidas (DE:ADSGN) stock and Puma (DE:PUMG) stock fell sharply on Friday, as a disappointing update on Thursday by rival Nike (NYSE:NKE) sparked fears that the two won’t be able to get enough product to markets in North America and Europe in time for the key holiday season.

By 4:25 AM ET (0825 GMT), Adidas (OTC:ADDYY) stock was down 3.6% and Puma stock was down 2.9%. U.K. sports retailer JD (NASDAQ:JD) Sports Fashion (LON:JD) also fell in sympathy, by 2.3%. By comparison, the DAX index was down 0.8% and the FTSE 100 was down 0.3%

Nike on Thursday had cut its sales guidance for both the current quarter and the year, a reflection of prolonged factory closures in Vietnam due to Covid-19. Around half of Nike footwear is made in the southeast Asian country. Nike also warned of shipping delays that could affect its performance during the holiday season.

As with Nike, Adidas has shifted much of its production of sneakers and soccer kleets to Vietnam from China over the last decade. The German company already warned in August that it would suffer 500 million euros in lost sales due to factory closures. However, that didn’t stop it raising its full-year guidance for revenue. It expects sales to be up 20% this year, riding a sustained wave of demand for leisure and athletic wear as more people adapt their wardrobes to reflect the greater time spent at home due to social distancing.

Nike Earnings Miss Drags Adidas, Puma, JD Sports Down

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Join the exclusive subscription today and get premium articles for free

Up Next