Note: Nothing below should be considered investment advice.
Stock prices for sports-related companies that rely on a global supply chain were battered Thursday after Wednesday’s announcement by President Donald Trump about new worldwide tariffs. The wider S&P 500 is down 5 percent.
As of market close Thursday, some notable sports and apparel companies saw stock-price declines that ranged from just under 10 percent (Lululemon) to nearly 20 percent (Under Armour).
A snapshot:
Under Armour: 18.25%
Skechers: 17.1%
On: 16.2%
Nike: 14.4%
American Sports: 13.4%
Dick’s Sporting Goods: 12.5%
Puma: 11.8%
Adidas: 11.7%
Lululemon: 9.6%
The newly announced tariffs include a 10 percent minimum on all imports to the U.S., along with additional tariffs on a range of trading partners.
A report today from Sportico noted that while companies like Nike had decreased their dependency on China as a manufacturing base, many have shifted resources to other Asian countries, like Vietnam, that will now face a new raft of importation taxes.
Vietnam is in line for a new 46 percent tariff, among the highest Trump announced Wednesday. That could put significant strain on companies like Nike and adidas, which rely on Vietnam as part of their worldwide manufacturing processes.
According to Nike’s May 2024 filing with the United States Securities and Exchange Commission, about half of the company’s footwear came from factories in Vietnam last year. Facilities in Indonesia and China manufactured another 27 percent and 18 percent of the company’s footwear, respectively. Each of those countries will face tariffs of more than 30 percent. Overall, factories in Vietnam, China and Cambodia manufactured approximately 58 percent of all Nike apparel during the 2024 fiscal year. Cambodian imports will be tariffed at an additional 49 percent if the administration’s changes go into place.
Brands may pass along tariff-related costs to consumers, who could have a range of responses, from purchasing fewer goods to paying higher prices.
As fans enter Final Four weekend in men’s and women’s college basketball, logos on player uniforms — Under Armour for South Carolina women and Auburn men, Nike (or Jordan Brand) for Duke, Florida and Houston on the men’s side and UCLA, UConn and Texas on the women’s side — will be stark reminders of economics that could impact teams’ and fans’ futures beyond the arenas in San Antonio and Tampa.
(Photo: Lauren DeCicca / Getty Images)