Nike shares dropped low since October on Friday, after the company's pandemic recovery was disrupted last quarter by supply-chain issues that stopped goods from hitting North America, which is its largest market.

The athletic wear behemoth missed Wall Street expectations with its latest performance. In the third quarter, sales were $10.4 billion, just below analysts' expectations of $11 billion. Its revenue in Europe was also depressing since many shops there are still closed due to the pandemic.

Nike shares dropped as much as 4.3 percent to $137 in New York trading Friday. Until Thursday's close, the stock had risen 1.2 percent this year. Its revenue in Europe was also depressing. The fact that many shops are still closed due to the pandemic. Nike shares dropped as much as 4.3 percent to $137 in New York trading Friday. Until Thursday's close, the stock had risen 1.2 percent.

Nike's recovery has been inconsistent throughout the world. Sales in China have been strong. They increased by 51% in the quarter ended February 28. Revenue in North America dropped 10% as a result of port congestion and container shortages.

“Nike could achieve management's guidance of 75 % revenue growth in fiscal 4Q, above consensus' 65% rise, as the business captures missed sales from 3Q supply constraints and grows shares across innovation and sports,” according to Poonam Goyal, a retail analyst at Bloomberg Intelligence.

The problems with shipping started in late December. This resulted in late shipments and a supply shortage for wholesalers. With merchandise trapped in transit, Nike's fulfillment centers saw a 20% drop in inventory.

Despite the sales deficit, Nike's profits exceeded expectations. The organization made a profit of 90 cents per share, against a forecast of 76 cents. It had a gross margin of 45.6%, which was more than a percentage point higher than the usual forecasted figure of 44.4 %.

Nike could withstand the Covid-19 storm, thanks to e-commerce. Digital sales of the Nike brand increased by 59% last quarter, with strong growth in every country.

In a statement, Chief Financial Officer Matt Friend said, "We continue to see the importance of a straightforward, digitally-enabled approach, fueling greater potential for Nike over the long term."

Many brands have seen a spike in e-commerce orders as a result of pandemic-related lockdowns, but Nike has been particularly aggressive in moving sales to online outlets and company-owned stores – rather than the retail partners on whom it depended for decades.

However, the plan had several setbacks. In recent weeks, Nike attracted the wrath of sneakerheads when Bloomberg BusinessWeek reported that the son of a top executive had a booming footwear resale business. Ann Hebert, Nike's North American president, stepped down and was succeeded by Sarah Mensah, who previously headed the company's Asia Pacific and Latin America division.