ADDYY - Footwear stocks seen at risk of short supply due to Vietnam factory closures

BTIG warns on supply risks in the apparel and footwear sector as the negative impact of Vietnam factory closures becomes clearer. The firm expects some announcements on missed delivery schedules and thinks sales guidance shockers could be in the mix due to the COVID-related closures in Vietnam. "While the situation is fluid, we hear performance footwear has been suffering the most severe delays and is at increasing risk for cancellations for spring," warns analyst Camilo Lyon. The list of potentially impacted companies includes Nike (NYSE:NKE), Under Armour (NYSE:UAA), Adidas (OTCQX:ADDYY) and Deckers Outdoors (NYSE:DECK) via the HOKA business. Of note, Steve Madden's (NASDAQ:SHOO) shift of 50% of its manufacturing to Mexico/Brazil earlier this year is said to be looking particularly prescient as it may avoid some of the supply chain disruption. Read more details on BTIG's rating cut on Nike.

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Footwear stocks seen at risk of short supply due to Vietnam factory closures