By Kelly Cloonan
Nike recorded another sales decline in the latest quarter as it continued to hit hurdles with weakness in China.
The sneakers and apparel company said the results were in line with its expectations, despite facing what it called an increasingly challenging operating environment where sell-through remains under pressure.
"While we continue to face top-line headwinds, we're encouraged by progress in performance product and are focused on consistent execution, improved profitability and scaling our wins to realize our full potential," Chief Executive Elliott Hill said.
Nike has been working through a turnaround plan under Hill, who rejoined the company in 2024. It's made progress in some areas--including with its running, wholesale and North American businesses--but its hit hurdles in China, as well as with its Converse brand and sportswear offerings.
Nike on Tuesday posted a fourth-quarter profit of $1.07 billion, or 72 cents a share, up from $211 million, or 14 cents a share, a year earlier. The recent quarter's per share figure includes a 52 cent boost related to the expected recovery of IEEPA tariffs.
Analysts polled by FactSet forecast earnings of 12 cents a share.
Fourth-quarter revenue ticked down 1% to $10.97 billion, from $11.1 billion, compared with analyst estimates of $10.85 billion.
Wholesale revenue rose 4% while direct revenue fell 7%.
Sales rose 3% in North America and 1% in the Asia Pacific and Latin America market, though fell 1% in the Europe, Middle East and Africa region. The company had a particularly steep decline in China, where sales slid 12%.
The results come after Nike named a new chief financial officer last week. David Denton, currently CFO at Pfizer, is set to take on the top finance role at Nike on Aug. 17, succeeding Matthew Friend.
Write to Kelly Cloonan at kelly.cloonan@wsj.com