Predicting lockdowns and factory closures in Vietnam’s impact on operations, analyst from BTIG Research & Strategy have cut Nike’s outlook for the current fiscal year. They believe, factory closures in Vietnam will cause acute shortages in supply of the brand’s footwear as around half of its production facilities are located in the country. Three months ago, Nike had given a rosy outlook for the rest of the year as it benefited from consumers splurging on sneakers for running and hiking as they returned to their routines after over a year of staying at home.

The American multinational corporation is engaged in design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. The company headquartered near Beaverton, Oregon, in the Portland metropolitan area is the world's largest supplier of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of $37.4 billion in its fiscal year 2020 ended May 31, 2020.