According to multiple published reports, Nike, three months after suspending operations in Russia, has decided to exit the country altogether. Slated to report its fourth quarter and full fiscal year results on Monday, Nike’s planned withdrawal follows that of other U.S. firms, such as Coca-Cola, McDonald’s and Google, who have already announced exits from Russia. The move will not be material to Nike’s topline, given Russia and Ukraine account for less than 1 percent of the company’s annual revenues.
Beyond symbolic, Nike’s decision to withdraw and eventually shutter an estimated 100 stores in the market, including 37 doors through its largest Russian franchisee in Inventive Retail Group, may have been accelerated by the prospect of new Russian laws in the coming weeks, Reuters reported. That pending legislation will allow Moscow to seize assets and levy criminal penalties on any foreign companies attempting to leave the country due to the ongoing war in Ukraine.
Adidas shuttered its Russian stores, paused online sales there in March, and reportedly has no plans to re-start its business. Puma and Reebok each suspended their respective Russian operations in the same month, with Reebok currently negotiating the sale of its 100 stores there to Turkish shoe retailer Flo Magazacilik, Reuters said.
