Nike’s earnings for the quarter were affected by lower sales in two regions | Business

The Oregon-based company on Monday reported lower fourth-quarter earnings for the fiscal quarter.

Nike reported earnings of $ 1.4 billion for the quarter ended May 31st. US dollar profit – 5 percent. less than in the same period last year, at that time revenue shrank by 1 percent. up to 12.2 billion USD.

Retail analyst Neil Saunders of GlobalData said the results were “good enough”, but some factors were “not pleasant”.

Such factors include the challenging inflationary environment in North America, which has led some consumers to cut costs.

Another problem is China, where restrictive measures to stop the spread of COVID-19 are “causing a sudden change in consumer behavior,” Saunders said.

“Theoretically, the recovery should be observed when China reopens, but that could change quickly if further quarantine is introduced,” the analyst said.

The company’s share price rose as Nike forecast revenue to “rise slightly” in the next quarter.

Matthew Friend, chief financial officer of Nike, said the company monitors consumer behavior for the “effects of high inflation” and takes a “cautious approach” to the Chinese market.

Friend also said the forecast reflects a decisive halt in yields in a strong dollar in foreign markets, as well as the continued impact of high freight costs and supply chain investments.