Nike held its earnings call for the second quarter of the 2022 fiscal year yesterday and despite the strong financial results in the last quarter, it didn’t come without its challenges.
In the call, Nike’s chief financial officer Matt Friend revealed that three months of production volume were lost and roughly 130 million units of product were canceled due to the closures of its Vietnam factories caused by the ongoing coronavirus pandemic. The brand did not specify the products that were directly affected by the factory closures.
Friend also confirmed that nearly all impacted Nike factories began to reopen in October. As of yesterday, all of its factories are once again operational and weekly footwear and apparel production are now at roughly 80 percent of pre-closure volumes. A return to full production volume isn’t expected for several months.
And while no specifics were offered, Nike is confident that its supply chain woes will normalize heading into the 2023 fiscal year.
