Shoemakers Look to Olympics for a Runaway Success
Asian suppliers are signaling a rebound is on the way for the likes of Nike and Adidas.
Leading indicator.
Photographer: Kevin C. Cox/Getty Images
A lot is riding on this Summer’s Olympic Games in Paris for global sportswear brands that desperately need a catalyst to boost sales. And there are early hints from major Asian suppliers that leaders like Nike Inc. and Adidas AG, which get most of their revenue from shoes, may already be enjoying a rebound.
Pou Chen Corp., which makes shoes for those two names along with Converse, Puma and Skechers, has traditionally served as a good leading indicator of the sports-footwear industry’s fortunes. For example, Adidas’ shipments of shoes dropped 26% last year, similar in scale to the 20% decline at the Taiwanese contract manufacturer. More recently, Nike, whose fiscal year ends on May 31, eked out 0.1% growth in footwear revenue for the three months to Feb. 29; Pou Chen’s slide in sales narrowed to 3% in the December quarter, the strongest performance in a year.