Nike Beats Q4 Revenue Estimates; China Weakness Persists

Nike's fiscal fourth-quarter revenue of £8.3bn beat analyst forecasts. The 1% reported decline and 4% currency-neutral drop were less steep than some had anticipated. The company told investors its turnaround is progressing more slowly than planned. Greater China remained the biggest headwind, with sales in the region continuing to weaken.

Sales in Greater China have been under pressure for several quarters. Local sportswear brands such as Anta and Li-Ning have gained share, and consumer sentiment has stayed subdued. Management cited the region as the primary reason the recovery is delayed. CEO Elliott Hill, who took over late last year, has been cutting costs and simplifying the product lineup, shifting focus toward direct-to-consumer channels.

Cautious spending patterns were not limited to China. In North America and Europe, shoppers reduced discretionary purchases in footwear and apparel. Wholesale partners placed smaller orders, and Nike's own digital sales did not fully compensate. The combination left the company with limited near-term momentum.

Local competitors in China have invested heavily in marketing and design, narrowing the gap with Nike. Nationalistic sentiment has boosted demand for domestic labels. Nike has responded with localised products and marketing campaigns, results have been mixed so far.

The restructuring is expected to continue through the rest of the year. Nike did not provide specific guidance for the current quarter. The back-to-school season and the holiday quarter will be the next major tests. Management said the turnaround will take longer than initially expected, without offering a revised timeline. Some investors said the cautious tone means the stock may not recover until there are clearer signs of stabilisation in China.