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Nike is permanently exiting the Russian market, one of the first major US sportswear brands to pull out completely.
“Nike, Inc. has made the decision to leave the Russian marketplace,” a Nike spokesperson said in an emailed statement yesterday. “Our priority is to ensure we are fully supporting our employees while we responsibly scale down our operations over the coming months.” Reuters first reported the news.
The European Union and the UK today outlined details of new luxury sanctions on Russia.
Russia and Ukraine account for less than 1 per cent of the company’s total revenue, chief financial officer Matthew Friend said in Nike’s most recent earnings call. Last year, Nike sales reached $44.5 billion. Nike first suspended business in Russia in early March, temporarily closing its stores and pausing all e-commerce operations. It also said at the time it would be donating $1 million to relief efforts.
Other fashion brands have paused business operations in Russia, including Chanel, Louis Vuitton, Gucci, Hermès and Prada, citing challenges and concerns about staff welfare. Nike is among the first to permanently exit the market, following McDonald’s and Renault. In May, Farfetch CEO José Neves said the company had “no plans” to reinstate business in Russia for the foreseeable future.
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