Supply Chain Troubles Cast a Shadow On Q3 Earnings: Crocs and VF Corp. Set to Report This Week

Earnings season is here. And as brands and retailers gear up to share their results, one theme is likely to dominate: supply chain challenges. Analysts predict an earnings season characterized by ongoing supply chain problems that have had a particularly aggressive impact on the footwear industry. For starters, a global shortage of rubber and plastic, which are essential in the production of sneakers, has made it difficult for factories to produce enough product to meet demand. This is exacerbated by labor shortages and factory shutdowns abroad in China, Malaysia, and Vietnam. On top of material shortages, factory shutdowns, high freight costs, and port congestion are making it tough for retailers to secure enough inventory. These supply chain disruptions could last through 2022 and well into 2023, said Bindiya Vakil, CEO of global supply chain monitoring company Resilinc. Crocs and VF Corporation report quarterly results this week, and Skechers and Columbia Sportswear will release their latest financials next week. VF Corp, which owns The North Face, Vans, Supreme and Timberland brands, among others, will likely report impact from supply chain issues, according to Williams Trading analyst Sam Poser, who advised investors in a note to lower their expectations for the company’s performance. (VFC beat expectations

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