The sneaker giant Nike shares dropped 3% on Thursday after the company reported the quarter 1 revenue. The company also announced that the Supply chain havoc is affecting the business.
Nike has lowered its fiscal 2022 outlook to account for longer transit times, labor shortages and prolonged production shutdowns in Vietnam. The company expects the sales to rise in the next quarter. The company noticed a flat line sale in the second quarter. According to Refinitiv data, analysts are looking for revenue growth of 12% for the year, as well as a 12% increase for the second quarter.
The sneaker giant Nike anticipates facing a short term inventory shortage. Chief Financial Officer Matt Friend said that the company tries to manage the shutdown of the Vietnam factory. Nike manufactured nearly 50% of footwear and 30% of apparel. Nearly 80% of the factories in Vietnam remained closed. Revenue in North America rose 15% to $4.88 billion. That was short of the $5.05 billion that analysts polled by FactSet were looking for. Digital sales for the Nike brand rose 29% year over year.