Overview

• CEO Tom Foley told the Financial Times that Intersport is evaluating moving a significantly larger share of its private-label production back to China to leverage available capacity and lower manufacturing costs.
• The proposal runs counter to industry leaders Nike and Adidas, which have cut their China output to roughly 16 percent and relocated production to Vietnam, Indonesia and Bangladesh.
• Foley has set a goal of increasing private-label revenue from 10 percent to 20 percent of group sales within five years, using Intersport’s cooperative network of 5,500 stores in 42 countries.
• US tariffs on Chinese imports have left many Chinese factories underutilized, creating price advantages that Intersport sees as an opportunity for its European and global supply chains.
• As part of IIC-Intersport International Corporation, the cooperative generated €14 billion in revenue last year and currently sources goods from China, Bangladesh, Vietnam and Cambodia.