Nike (NKE) shares dropped over 2% in early trading on Friday after reporting earnings that missed estimates as its margins were sq🗹ueezed by higher costs and markdowns amid a pullback in consumer spending.

The sports apparel retailer reported net income of $5.07 billion, down 16% from a year ago, and 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) of $3.27, down 15% from a year earlier. Both were short of analyst projections.

The company reported that its 澳洲幸运5官方开奖结果体彩网:gross margin fell 140 ba꧒sis points to 43.6% on the heels of “higher product input costs and elevated freight and logistics costs, higher markdowns and continued unfavorable changes in net foreign currency exchange rates.”

Some bright spots for Nike inc𒉰luded sales growth in the Greater China region as COVID-19 lockdowns eased, with sales there reaching $1.8 billion for the quarter, up 16% year-over-year (YoY). Nike’s global football business also grew 25% YoY, while revenue from its clothing and sneaker line, Jordan, stood at $6.5 billion, recording a 29% YoY increase.

Nike President & CEO John Donahoe said he expects that the company’s partnerships with popular athletes like Erling Haaland and LeBron James could provide a "great opportunity" for the company. 

Shares of Nike were down more than 4% year-to-date after Friday's decline.