Sports goods retailers slip on Nike's holiday supply cutbacks
24/09/2021 16:49
** Shares of retailers Foot Locker FL.N , Hibbett Sports
HIBB.O and Dick's Sporting Goods DKS.N slip after Nike says
production challenges will constrain holiday supplies
** HIBB falls 9% to touch a more than three-month low of
$72.67; FL and DKS down 5.1% and 2.4% respectively
** Nike NKE.N on Thursday said months-long factory
closures in Vietnam, where about half of all its footwear is
manufactured, have created delays in product shipments and will
result in "lean inventories" for the next few
quarters urn:newsml:reuters.com:*:nL4N2QP2WK
** NKE down ~7% after it also cut its own FY sales forecast
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** FL purchased 75% of all its products from NKE last fiscal
year, while HIBB got 67.7% of its products from NKE; NKE is also
DKS' largest vendor, representing ~19% of merchandise purchases
** With limited supplies, NKE says it will prioritize its
own channels and its "most strategic wholesale partners"
** DKS has gained 145% this year, while HIBB and FL are up
58% and 22% respectively
(Reporting by Uday Sampath in Bengaluru)
((UdaySampath.Kumar@thomsonreuters.com; within U.S.+1 646 223
8780; Twitter: https://twitter.com/sampath_uday ;))