Adidas, the German sportswear behemoth, revealed a dip in first-quarter profits on Friday, blaming widespread coronavirus lockdowns for hurting operations in crucial market China.

The group’s continuing operations net profit declined to 310 million euros ($326 million) from 502 million euros the previous quarter.

The setback was accompanied by a three-percent drop in sales across the board, the group said in a statement.

Adidas estimated that “supply constraints as a result of last year’s lockdowns in Vietnam”, where the group has production facilities, had suppressed as much as 400 million euros in revenues in the first quarter.

At the same time, “Covid-19-related lockdowns” in China and other Asian markets have held back demand for its wares.

The drastic health restrictions added to a “challenging market environment” for Adidas in China, with revenues in the first quarter falling by 35 percent year-on-year.

The German sports outfitter “will return to growth” in the Asia-Pacific market region, where revenues fell by 16 percent in the first quarter, Adidas CEO Kasper Rorsted said in a statement.

The group’s difficulties in China were however expected “to continue”, Rorsted added.

The struggles in Asia contrasted with Adidas’s stronger revenue growth elsewhere, with sales in North America up 12.8 percent.

Markets in Europe, the Middle East and Africa “were most impacted by the supply shortages”, the group said, limiting sales growth in the region to 9.1 percent.

The kit-maker also had to fight a “significant increase” for the transport and sourcing of its materials, which put pressure on its profit margins.

Adidas maintained its guidance for 2022, but said the “severe impact” of Chinese lockdowns would keep revenue growth towards the lower end of its 11-to-13-percent range.

The same can be said for the group’s annual net income, which is now forecast to be closer to 1.8 billion euros than 1.9 billion euros.