Athletic Footwear & Apparel
Athletic Footwear Supply Chain
Where Nike makes the product
FY2026 NIKE Brand finished goods. Footwear is Vietnam 52%, Indonesia 27%, China 16%. Apparel is more spread, with Cambodia second after Vietnam.
VietnamIndonesia / CambodiaChinaOther
VF contractor footprint
About 231 million units from about 216 factories in about 24 countries, plus the tariff regime sitting on that map.
| Units sourced | About 231 million |
| Contractor factories | About 216 |
| Source countries | About 24 |
| Owned retail stores | 1,080 |
| Concession stores | 868 |
| Distribution centers | 13 owned, plus third-party |
| Employees | About 26,000 |
| Tariff note | April 2025 IEEPA reciprocal tariffs; Supreme Court invalidated IEEPA tariffs in February 2026; replacement tariffs followed immediately. |
Tariff and trade timeline
IEEPA reciprocal tariffs in April 2025, de minimis removal, the February 2026 Supreme Court ruling, and replacement duties. Under Armour and lululemon already printed the cost.
| Date | Event | Why it matters |
|---|---|---|
| April 2025 | US announces broad reciprocal tariffs under IEEPA. | Footwear and apparel from Vietnam, Indonesia, and China sit in the blast radius. VF 10-K. |
| May 2, 2025 | US eliminates de minimis duty-free treatment for certain shipments. lululemon says unmitigated tariffs plus de minimis removal cut FY2025 gross profit by about $275 million. | Most of lululemon's US e-commerce is fulfilled from Canada. The exemption's removal is a Direct-channel cost, not just a factory cost. |
| FY2026 (UA, year ended Mar 31, 2026) | Under Armour gross margin 45.5%, down 240 bps, primarily higher tariffs. | The tariff bill showed up in a reported P&L, not just a risk factor. |
| February 2026 | US Supreme Court invalidates IEEPA tariffs. Replacement tariffs imposed immediately after. | VF 10-K. The legal win did not restore the pre-April 2025 duty stack. |
| UA FY2027 outlook (May 2026) | Under Armour guides gross margin +220 to +270 bps, including about 150 bps from assumed IEEPA cost reversal. | The guide itself is the tell: tariff accounting is still a swing factor. |
| Ongoing | UFLPA forced-labor detention risk on cotton and other inputs. | A separate import ban regime from the reciprocal tariff stack. Named in sector risk, not quantified here. |
Gross margin into the tariff year
Under Armour is the explicit tariff print (45.5%, down 240 bps). lululemon fell 260 bps and later quantified about $275 million of unmitigated tariff and de minimis cost. Nike's GM was roughly flat.
Prior yearLatest year
Adidas sourcing volume by country
Vietnam 27% of 2025 volume, Indonesia 18%, China 16%. Asia 92%. Largest factory about 6% of volume. These are unit shares, not sales dollars.
VietnamIndonesiaChinaOther
On manufacturing mix
Footwear is about 90% Vietnam and 10% Indonesia, with no China footwear. Apparel and accessories are about 65% Vietnam, 29% Turkey, and 6% China.
VietnamIndonesia / TurkeyChina
lululemon manufacturing by country
FY2025 products, based on cost: Vietnam 40%, Cambodia 18%, Sri Lanka 11%, Indonesia 11%, Bangladesh 7%. Fabric origin is a different mix and is not in this chart.
Contractor concentration
How many factories and how concentrated the top partners are, as each company discloses it. Country percentage mixes that have their own charts are not repeated as bars here.
| Company | Layer | Disclosure |
|---|---|---|
| Nike | Footwear contractors | 15 contract manufacturers, 95 factories in 11 countries. Four each greater than 10% of FY2026 NIKE Brand footwear, 60% combined. |
| Nike | Apparel contractors | 64 contract manufacturers, 321 factories in 34 countries. Two greater than 10% of apparel; top six 54% combined. 205 strategic Tier 2 material suppliers. |
| Adidas | Volume concentration | Almost 100% outsourced. Largest factory about 6% of 2025 volume. 65% of independent manufacturing partners have worked with adidas for at least ten years; 37% for over 20 years. 60 distribution centers (21 owned). |
| On | Supplier network | Fewer than 30 manufacturing suppliers in 2025. Six partners about 70% of production. Footwear: 10 suppliers (8 Vietnam, 2 Indonesia). Apparel and accessories: 16 suppliers across Vietnam, Turkey, China, and Indonesia. LightSpray factory opened in Zurich; substantially all other product remains third-party. |
| lululemon | Finished goods | About 51 vendors. Five produced 47% of 2025 products; largest 15%. About 65 fabric suppliers; top five 48% of fabrics, largest 20%. |
| Deckers | Finished goods | Independent manufacturers, majority in Southeast Asia. FY2026 production predominantly Vietnam and Indonesia. Less than 5% from China or any other single country. Buying office in Hong Kong; on-site offices in Vietnam, China, and Indonesia. |
| Under Armour | Apparel and footwear | FY2026: 40 primary apparel and accessories manufacturers in 17 countries; about 65% of apparel and accessories from Jordan, Vietnam, Indonesia, and Cambodia. Ten of those 40 produced about 69%. Substantially all footwear from seven primary manufacturers, operating primarily in Vietnam and Indonesia. |
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