Nike reported a sharp increase in quarterly profit, boosted by a significant tariff reimbursement, although the sportswear giant continues to face headwinds across key markets.
For the fourth quarter of its fiscal year, Nike posted net income of $1.1 billion, supported by a $986 million reimbursement related to customs duties. The exceptional gain helped strengthen earnings despite softer operating performance.
Revenue declined by 1% year-over-year to $10.97 billion, reflecting ongoing challenges in consumer demand and regional markets.
China remained a major drag on performance, with sales in the country falling 12% during the quarter. Meanwhile, Converse experienced an even steeper decline, with revenue dropping 32%.
Investors reacted cautiously to the results, sending Nike shares down nearly 5% in after-hours trading as concerns persist over the company’s growth trajectory and recovery prospects in key international markets.