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The global footwear and apparel industry is reassessing its manufacturing strategy as Chinese factories offer highly competitive pricing, potentially reversing the recent trend of shifting production to Southeast Asian countries like Vietnam and Cambodia. This dynamic is forcing brands to weigh cost benefits against supply chain diversification amidst ongoing tariff and labor cost pressures.
Nike is expected to report a year-over-year earnings decline for its second quarter. The forecast comes amid shifting production dynamics and cost pressures in its key Asian manufacturing hubs, creating uncertainty for the stock.