Nike’s revenue rose one per cent in the second quarter. The company expects a low single-digit rise in third-quarter revenue but is confident of easing supply chain issues in its next fiscal year. Nike’s second quarter sales in North America, its largest market, jumped 12 per cent as a reopening US economy and the roll out of vaccines gave people the confidence to rush back to stores and splurge on sneakers for running and hiking.

Its direct-to-consumer business had record Black Friday sales in North America despite supply constraints heading into the holiday season due to months-long factory closures in Vietnam, where about half of all Nike footwear is manufactured. Those supply issues and fresh Covid lockdowns led to a 20 per cent fall in Nike’s revenue in Greater China in the second quarter. Nike’s weekly footwear and apparel production is at roughly 80 per cent of pre-closure volumes at its now fully open factories in Vietnam. The closures caused Nike to cancel production of roughly 130 million units.

Covid continues to impact the global supply chain and create transportation disturbances. Like Nike, German groups Adidas and Puma are dealing with closures at their Vietnamese suppliers’ factories in recent months and with difficulties in shipping goods from Asia to the rest of the world.