Though slightly better, Nike’s (NKE) trouble in China continues. In its latest 10-Q, Nike updated investors on its performance across different geographies, including China, where Covid-19 related lockdowns are closing stores and preventing consumers from leaving their homes. While quarterly sales in the U.S. rose 8.9%, in Greater China they fell 5.2%.

Though slightly better than the 5.8% decline in the nine months ending February 28, 2022, caution is still warranted. The lockdowns imposed have increased since Nike’s quarter ended, suggesting the impact will spill into the coming quarter and possibly beyond unless there’s a significant policy change:

“On a currency-neutral basis, Greater China revenues for the third quarter of fiscal 2022 decreased 8%, reflecting impacts from supply chain constraints, government restrictions due to COVID-19 as well as ongoing marketplace dynamics. The decrease in revenues was primarily due to lower revenues in Men’s. NIKE Direct revenues decreased 11% due to digital sales declines of 19%, comparable store sales declines of 10%, in part due to reduced physical retail traffic as a result of government restrictions due to COVID-19 as well as ongoing marketplace dynamics, partially offset by the addition of new stores.”