Nike NYSE:NKE shares fell about 3% on early Wednesday after the sportswear company reported fiscal fourth-quarter revenue and earnings that exceeded Wall Street expectations, while warning that sales may continue to face pressure in the current quarter.
Nike reported revenue of $11 billion, down 1% from a year earlier, while adjusted earnings came in at $0.72 per share. The company said results included a $0.52-per-share benefit tied to expected recoveries from tariffs under the International Emergency Economic Powers Act, which may make year-over-year comparisons less straightforward.
Nike said revenue in Greater China exceeded analysts' estimates, though sales in the region still declined 12% from the prior year.
For the fiscal first quarter, Nike expects revenue to decline in the low- to mid-single-digit percentage range and projects gross margin to be slightly positive. The company said its outlook assumes 10% incremental tariffs through July, rising to 15% afterward, as it continues efforts to improve performance amid ongoing demand challenges.