NEW YORK, June 28, 2022 (AFP) - Lower sales in North America and China dented
Nike's quarterly results as the sports giant on Monday projected modest
revenue growth amid the strong dollar, rising inflation and other headwinds.

The Oregon company -- which has enjoyed strong pricing at times during the
pandemic but also faced Covid-19 factory lockdowns in Asia that have crimped
its inventories -- reported lower profits for its fiscal fourth quarter.

For the quarter ending May 31, Nike reported profits of $1.4 billion, down
five percent from the prior year on a one percent dip in revenues to $12.2
percent.

Neil Saunders, managing director of GlobalData, a retail consultancy, said
the results were "reasonably good" but with some unfortunate "devils in
details."

These include the tough North American inflationary environment, which has
led some consumers to cut back on discretionary investments.

Another issue is China where lockdowns "are creating sudden swings in
consumer behavior," Saunders said in a note.

"In theory there should be a recover as China reopens, but this could quickly
be reversed if further lockdowns are imposed."

Shares retreated as Nike forecast revenues of flat to "slightly up" in the
coming quarter.

Nike Chief Financial Officer Matthew Friend said the company was monitoring
consumer behavior over "implications of high inflation" and adopting a
"cautious approach" to Greater China given the country's restrictive Covid-19
policies.

Friend also said the forecast reflects a drag from the strong dollar in
overseas markets, as well as the continued hit from lofty freight costs and
supply chain investments.

Shares dropped 3.0 percent to $107.20 in after-hours trading.