UnderArmour sources most of its products from Vietnam, which is facing manufacturing, logistics and port congestion challenges.
Sportswear giant UnderArmour said that Vietnam is one of its largest purchasing countries. At the recent earnings conference announcing its second-quarter results, Chief Financial Officer David Bergman said that the company are facing demand and supply constraints.
“From a planning perspective, we did adopt the demand control that we began to consider last year. But the real impact will come this year, due to a significant increase in consumer purchase demand. Supply must keep up.”
Bergman said that in addition to the impact of demand constraints, which is expected to increase in the second half of this year, UnderArmour’s forecast also considers supply chain pressures.
“We are seeing shipping delays on some products, which may result in the cancellation of some orders and subsequent stress.”
UnderArmour expects full-year revenue to grow at a low growth rate of 20%, which is comparable to the previously expected growth rate. This product delay originated from Vietnam (accounting for about 1/3 of its supply chain) ) and a host of challenges posed by supply chains across Southeast Asia.
CEO Patrik Frisk said: At present, we have experienced multiple incidents from Vietnam, which not only impact local production, but also have consequences for logistics, ports and container dispatching. had an impact.
