The cost of shares for the Oregon-based the athletic footwear giant Nike dipped after the company lowered its revenue forecast for the 2022 fiscal year because of COVID-related supply chain issues.
According to CNBC, Nike shares dropped roughly 3% after company officials showed concerns about inventory shortages due to factory shutdowns in Vietnam where about half of the company's sneakers are made. The government there has tried to mitigate coronavirus through closures, which has halted the Nike inventory being produced.
"We've already lost 10 weeks of production, and that cap will continue," Nike CFO Matt Friend told analysts, CNBC reported. "It's going to take several months to ramp back to full production."
Company officials said they're also dealing with shipping delays which only make matters worse, according to CNBC. Friend said it now takes roughly 80 days for its goods to arrive in North America from Asia.
Nike had a mixed first-quarter earnings report where officials reported $12.25 billion in sales, but that fell short of expectations of $12.46 billion, CNBC reported.
According to CNBC, Nike reported a strong demand for its footwear and athletic wear, but the supply shortages will hurt its short-term financial performance.