Nike Earnings Miss Drags Adidas, Puma, JD Sports Down

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Nike Earnings Miss Drags Adidas, Puma, JD Sports Down
Credit: © 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.

 

 

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