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1. The *dogs'* tails were wagging.
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Furthermore, pay close attention to the impact of inflation and currency fluctuations on margins. Inflation can increase production costs. This can squeeze profit margins if Nike cannot raise prices to match. Also, a strong US dollar can affect the profitability of Nike's international sales. This is because when converting foreign currency revenue into dollars, the profits might appear lower. Nike will often provide explanations in the report. They often detail the impacts and strategies to mitigate these risks. Look for any discussions about their efforts to improve efficiency or reduce costs. Nike might be investing in automation, supply chain optimization, or other initiatives to boost their profitability. Such investments can affect the short-term margins, but they should yield long-term benefits.
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