Supply Chain Issues Impact Nike, Caleres

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Executives from both Nike and Caleres, in earnings calls with investors last week, cited current supply chain issues. Famous Footwear parent Caleres confirmed $60-70 million delayed receipts, adding its H1/21 business “will be constrained by ongoing pandemic-related impacts, supply chain disruptions and port congestion.

“No new news there,” commented Caleres Chairman and CEO Diane Sullivan. “I think everybody has been feeling this.”

At Nike, company executives confirmed that global supply chain disruptions, caused by container shortages, transportation delays and port congestion, impacted its inventory supply flow in the quarter ended Feb. 28. North American inventory level was up 31 percent year-over-year at period end, a factor that the company attributed to “extraordinary high levels of in-transit inventory.” Swoosh distribution center inventory was down nearly 20 percent in the quarter.

“With strong consumer demand continuing through the spring season and marketplace inventory down high-double digits versus the prior year, we expect continued full-price momentum despite the short-term supply disruption and elevated levels of in-transit inventory,” Nike President and CEO John Donahoe told analysts.

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