What's going on?

Nike reported better-than-expected profit late on Thursday, but there�s a problem: the sportswear giant�s supply chain just won�t play ball.

What does this mean?

All these lockdowns have created a conveyor belt of runners, yogis, and crossfitters, and they all want to pursue their newfound passion in the finest Nike gear. Trouble is, most of the company�s Vietnamese factories have been shut down due to coronavirus outbreaks, losing the company around 10 weeks� worth of production time. Those factories aren�t expected to reopen until October, and even then it�ll take a few months to fully ramp back up. And even then it�ll take twice as long to transport products overseas from Asia as it did before the pandemic. Nike�s keenly aware: the company slashed its revenue outlook for this year and next, which might be why investors initially sent its shares down more than 4%.

Why should I care?

The bigger picture: No discounts for you.
At least Nike�s bottom line is looking pretty healthy: its profit was up 23% from the same time last year, which could be because it was selling fewer of its products via discount-happy wholesale partners and offering fewer markdowns of its own. Nike�s investment in ecommerce likewise seems to be paying off, with revenue in the segment up 29%.

Zooming out: Even Costco�s increasing prices.
Costco�s been having a pretty crap time with production too: the American wholesaler has been limiting the sale of toilet paper and similar products to avoid selling out completely, having struggled to get its hands � and tush, presumably � on the supply it needs. Odds are that�ll impact no one more than shoppers, with Costco estimating that the price of its products will climb by around 4% over the next few quarters.