Back
Nike beats Q4 estimates as weak China demand clouds turnaround

Nike beats Q4 estimates as weak China demand clouds turnaround

Adjusted earnings and revenue topped expectations, helped by a $986 million tariff refund, but double-digit China sales declines and a warning of further revenue drops through the first half of fiscal 2027 weighed on sentiment.

Fact Check
Both the CNBC primary earnings report and Fortune independently confirm every element of the claim: adjusted EPS of $0.20 (beating the $0.13 estimate), revenue of $10.97B (beating $10.86B), a tariff refund (~$986M) boosting margins (gross margin up 8.9%), and CEO Elliott Hill's turnaround showing firmer progress in North America (+3% sales) than China (−12% sales). The figures and narrative align precisely across two independent sources.
    Reference: 12
Summary

Nike reported fiscal fourth-quarter adjusted earnings of 20 cents a share on $10.97 billion in revenue, beating Wall Street expectations of 13 cents and $10.86 billion, with a $986 million tariff refund boosting gross margin. But investors remained unconvinced that CEO Elliott Hill's turnaround is firmly taking hold, sending Nike shares down 3.5% in premarket trading as the company reported a 1% revenue decline, double-digit sales declines in China and warned revenue would fall further through the first half of fiscal 2027. Analysts said Nike is prioritizing marketplace health and inventory clearing over near-term sales, with clearer progress in North America than in China.

Terms & Concepts
  • gross margin: The percentage of revenue left after accounting for the direct cost of goods sold.
  • premarket trading: Share trading before regular market hours.
  • inventory glut: An excess of unsold goods that can force discounting and weigh on margins.