Currency Volatility: Since the majority of Nike’s sales are generated outside of the United States, the company is exposed to significant currency fluctuations. The recent strengthening of the U.S. Dollar has hurt reported results, due to the foreign amounts being translated into U.S. dollars for reporting purposes. While the company does have certain hedges in place, they are designed to lessen the impact of unfavorable exchange rates, not fully eliminate the risk. The Dollar is expected to continue to strengthen in the coming months, so this will remain a concern for the near term.