Key facts
- Nike reported Q4 revenue of $10.97 billion, beating estimates of $10.86 billion.
- The company projected a revenue drop through the first half of fiscal 2027.
- Nike's Q4 revenue fell 1%, with double-digit sales declines in China.
- Shares fell 3.5% in premarket trading.
- CEO Elliott Hill is prioritizing marketplace health over near-term sales.
Nike shares fell in premarket trading after its latest quarterly results were overshadowed by a cautious sales outlook and weak demand in China. The sportswear giant reported fourth-quarter revenue of $10.97 billion, slightly exceeding analyst estimates of $10.86 billion, but projected further revenue declines through the first half of fiscal 2027. The company's revenue fell 1% in the fourth quarter, with double-digit sales declines in China, a market that accounts for about 15% of Nike's annual revenue. Analysts noted that Nike is prioritizing marketplace health over near-term sales, a strategy that may hinder rapid stock recovery. The stock has already fallen about 35% this year.