Nike’s Slump Was Foretold by Its Key Taiwan Shoe Supplier
Pou Chen is the world’s biggest contract maker of branded sports shoes. Its numbers tell the story.
Depleted savings.
Photographer: Ethan Miller/Getty Images
Fitness buffs have run out of puff. Signs of declining demand for sports gear drove Nike Inc.’s stock to a record losing streak, and the biggest indicator of weakness comes from a key supplier in Taiwan called Pou Chen Corp.
Shares of the Oregon-based sportswear giant fell for a 10th straight day Wednesday, the longest slide since it listed 43 years ago. While China’s economic malaise, including continued weakness in domestic consumption, is an easy scapegoat it really doesn’t explain the situation. Greater China accounts for just 14% of Nike’s sales, and revenue there had already been dropping since a peak in the fiscal year to May 2021.