Nike's emphasis on its sports business is showing early signs of paying off, though performance in China remains a drag on the company, Jefferies analysts write. The sportswear group's fiscal fourth-quarter results were better than feared, the analysts say. A renewed emphasis on sporting goods under Chief Executive Elliott Hill's "sport offense" was validated by a return to growth in Nike wholesale, the analysts say. However, weakness in direct sales through Nike stores and the company's app, as well as weakness in China, are the main challenges Nike faces. Shares fall 3.3% premarket, while European sports retailers also fall following the earnings. Adidas shares are down 1.3%, while Puma and JD Sports' London-listing drop 1.5% and 1.4%, respectively. (josephmichael.stonor@wsj.com)