Two of Nike’s suppliers in Vietnam, Changshin Vietnam and Pou Chen Corp, have reportedly halted manufacturing due to a rapidly expanding COVID-19 outbreak, Reuters reports. That comes as the pandemic has had a new wave of infections across south and southeast Asia, as discussed in Panjiva’s research of June 28, which the apparel and footwear industries appear to be particularly susceptible to.

That may exacerbate the supply chain disruptions that the firm has had to deal with. The firm’s CFO, Matthew Friend, noted in late June that he “expect(s) supply chain delays and higher logistics costs to persist throughout much of fiscal ’22” (to May 31, 2022). 

Panjiva’s data shows that Vietnam accounted for 49.0% of U.S. seaborne imports linked to Nike and its products in Q2’21 after growth of 6.6% year over year. There has been a refocusing on China though, with imports up by 54.6% year over year in Q2’21 being the major driver of a 12.5% rise in total imports linked to the firm.

Chart segments U.S. seaborne imports linked to Nike by origin. Source: Panjiva

Nike’s imports from Vietnam are led by footwear, which was included in 82.0% of shipments in the 12 months to June 30 after climbing 28.8% higher in Q2’21 versus a year earlier. That raises the question as to whether other major sneaker brands may face similar challenges.

Total U.S. seaborne imports had surged 53.9% higher year over year in Q2’21 after an increase of 25.2% in Q’21. The accelerating growth has been driven by Wolverine Worldwide (owner of the Saucony brand among others) and Puma with growth of 160.7% and 122.7% respectively in Q2’21 versus a year earlier. Imports linked to Under Armour by contrast fell by 4.0% though that was a slower rate than the 44.1% decline experienced in Q1’21.

Chart segments change in U.S. seaborne imports of sports shoes from Vietnam by consignee. Source: Panjiva