**Nike’s Slump Was Foretold by Its Key Taiwan Shoe Supplier**
**TAIPEI, Taiwan**
Nike Inc.’s recent stock market plunge was foreshadowed by its major Taiwanese shoe supplier, Feng Tay Enterprises Co., which reported a 37.6% year-over-year decline in orders for the first half of 2023.
**Feng Tay’s Warning**
In March 2023, Feng Tay had already warned of a significant decline in orders from Nike, its largest customer, and lowered its revenue outlook for the year. This revelation came just days after Nike itself announced disappointing quarterly results, leading to a significant drop in its stock price.
**Nike’s Struggles**
Nike has been facing a number of challenges in recent months, including rising costs, supply chain disruptions, and waning consumer demand. The company has also been criticized for its handling of the COVID-19 pandemic and its labor practices in China.
**Impact on Taiwan’s Footwear Industry**
The decline in orders from Nike has had a ripple effect on Taiwan’s footwear industry, which is heavily reliant on exports. Feng Tay, one of the largest footwear manufacturers in Taiwan, employs over 40,000 workers and generates annual revenues of around $1.5 billion.
**Analyst Insight**
Analysts believe that the decline in orders from Nike is a reflection of the broader challenges facing the global footwear industry. They note that rising costs and increased competition from low-cost manufacturers in Asia are putting pressure on margins.
**Conclusion**
Nike’s recent stock market plunge is a reminder of the challenges facing the global footwear industry. The decline in orders from Feng Tay, its key Taiwanese supplier, is a clear indication of the headwinds Nike is facing. As the company navigates these challenges, it remains to be seen how it will restore its growth and regain the confidence of investors..
