How Sportswear Companies are Affected by the COVID-19 crisis

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A woman wearing a respiratory mask walks past a closed Nike shop (Photo/Nicolò Campo/ WGN9)

Divya Sharma, Online Opinions editor

During the COVID-19 pandemic, almost everyone has been affected in some way or another. One industry in particular has been deeply affected: the fashion industry. Retail prices have dropped a significant amount in May as most businesses were shut due to the global pandemic. At the beginning of May, the retail store J.Crew filed for bankruptcy with other chains also thinking about this option. Nowadays, a major sector of the fashion industry is the sportswear category. Many of the top companies, such as Adidas and Nike, have shut down their retail stores for several weeks in order to help contain the spread of the virus. On top of that, many sports venues and events, such as the 2020 Tokyo Olympics, March Madness, PGA Tour, NBA League, NHL League, and local gyms have been either temporarily closed or postponed, putting a further strain on many activewear companies. 

However, during this period, many top companies have also been encouraging their customers to stay active, which is helping boost their sales and increase their shares. Whilst in quarantine, people have been getting into the idea of home workouts and staying active, and at-home workouts keep up the demand for sportswear and active clothing. For instance, the well-known company Nike has said that closing many of its retail stores and pausing production has resulted in a decrease in revenue, despite the high supply of product. Overall, the activewear and sportswear department has experienced a decline during this crisis, as have many other businesses.

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