What happened 

Shares of Nike (NKE -3.15%) fell 6.2% on Friday following the release of the sports apparel titan's fiscal 2022 first-quarter earnings results and subsequent conference call.

So what 

Nike's revenue rose 16% year over year to $12.2 billion. The gains were fueled by a 28% jump in Nike's direct sales -- which include company-owned physical retail stores and digital channels -- to $4.7 billion. 

"Nike's strong results this quarter are continued proof of our deep consumer connections, unrelenting innovation pipeline, and a digital advantage that fuels our brand momentum," CEO John Donahoe said in a press release. 

A person is pointing to a stock chart that rises sharply and then falls.

Nike's stock price fell despite posting solid earnings growth metrics. Image source: Getty Images.

Better still, gains in Nike's higher-margin, direct-to-consumer businesses helped to boost its overall gross margin by 1.7 percentage points, to 46.5%. That contributed to a 22% increase in the company's earnings per share, to $1.16.

"Our Q1 results illustrate how Nike's consumer direct acceleration strategy continues to fuel growth and transform our long-term financial model," Chief Financial Officer Matt Friend said. 

Now what 

Investors, however, appeared to focus on Nike's reduced full-year sales forecast. Friend said during a conference with analysts that coronavirus-related closures in Vietnam and other countries are causing delays in its supply chain. These production challenges will likely result in inventory shortages in the coming months. Management, in turn, now expects Nike's revenue growth to increase by "mid-single digits" rather than its previous estimate of low double-digit growth.

Yet these supply chain troubles are expected to be transitory, and management remains confident in Nike's long-term future. "Our competitive advantages, including our innovative product, brand strength fueled by compelling storytelling, our roster of the world's best athletes, and increasingly our industry-leading digital experiences at retail, will continue to create separation," Donahoe said.