Index Option Calls
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Index Option Calls
No Result
View All Result
Home Latest News

Factory shutdowns in Vietnam could have longer impact for apparel and footwear retailers, BofA warns

by
November 15, 2021
in Latest News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

Wall Street pros reveal their top defense stocks — and the same names keep coming up

Fears grow for untold numbers buried by Turkey earthquake

Nike shoes are displayed at a shoe store on September 27, 2021 in Novato, California.

Justin Sullivan | Getty Images

The impact of prolonged factory shutdowns in Vietnam is likely going to be worse than many apparel and footwear retailers have planned for, lasting well into 2022, according to analysts at BofA Securities.

The Wall Street research firm said in a note to clients over the weekend that the recovery in Vietnam will be more gradual than retailers are anticipating, and that businesses are being too optimistic about turnaround times.

BofA cited a number of reasons for its predictions, including the fact that the reopening of the economy in Southern Vietnam — where many apparel and footwear producers are housed — has been moving much slower than in the North.

Vietnam experienced a devastating surge in Covid cases this past July through August, prompting another round of local lockdowns. The temporary pause to production dealt a blow to companies such as Adidas and Nike, which rely heavily on the region for manufacturing their sneakers and athletic apparel. Businesses have since started to reopen, but vaccination rates remain significantly lower compared with other countries, BofA notes.

“While production activities indeed recovered fast last year after the brief Covid-related disruption, production is likely to take longer to normalize this time around – perhaps as long as 6 months,” said BofA economist Mohamed Faiz Nagutha.

He added that current factory operation rules in Vietnam remain strict and very complicated, which could hinder employees’ ability to return to work.

“All in, we expect several headwinds to weigh on the expectations for a fast resumption in production activities – including the likely persistence of labor shortages … but also due to rising raw materials costs and supply chain disruptions in many other parts of Asia,” Nagutha said.

Puma has already warned that supply chain bottlenecks, particular in Vietnam, will entail a shortage of its products far into next year. Last week, Adidas trimmed its 2021 outlook due to sourcing disruptions.

The topic will likely come up on a number of conference calls this week, as a round of retailers are set to report quarterly earnings. That list includes department store chains Kohl’s and Macy’s, big-box chains Walmart and Target, as well as mall staples Victoria’s Secret and Foot Locker.

–CNBC’s Michael Bloom contributed to this report.

ShareTweetPin

Related Posts

Wall Street pros reveal their top defense stocks — and the same names keep coming up

by
February 8, 2023
0

The war in Ukraine -- now nearing its one-year anniversary -- and the shooting down of an alleged Chinese surveillance...

Fears grow for untold numbers buried by Turkey earthquake

by
February 8, 2023
0

Mesut Hancer holds the hand of his 15-year-old daughter Irmak, who died in the earthquake in Kahramanmaras, close to the...

Goldman Sachs strategist reveals the ‘cheap’ sectors to own right now

by
February 8, 2023
0

Bank stocks are "inexpensive," and commodity companies look "cheap" in this high interest-rate environment, according to Goldman Sachs' Sharon Bell....

Why Biden’s 4% buyback tax could boost stock prices and dividends

by
February 8, 2023
0

The Biden administration’s new stock buyback tax will have little impact on the overall stock market. It might even actually...

Facebook co-founder funds research into cooling the Earth with sunlight reflection

by
February 8, 2023
0

This photograph taken on May 11, 2022 shows Shivaram, a villager walking through the cracked bottom of a dried-out pond...

Next Post

November 15th COVID-19: New Cases Increasing, Above 80K per Day

Morgan Stanley: These 3 “Strong Buy” Stocks Could Surge at Least 60%

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • A Couple Stored IRA Gold at Home. They Owe the IRS More Than $300,000.

    0 shares
    Share 0 Tweet 0
  • A California Couple Spent Eight Years Building Their Dream Retirement Home in Costa Rica

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs says buy these stocks to play Web 3.0 and the metaverse

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs picks new stocks to buy — and says these 5 have over 100% upside

    0 shares
    Share 0 Tweet 0
  • In his final warning, this stock trading wizard — who made big money in bear markets and crashes — called this market a bubble like no other

    0 shares
    Share 0 Tweet 0
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.indexoptioncalls.com
No Result
View All Result
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.indexoptioncalls.com