Nike Beats Estimates Despite 12% China Sales Drop in Q4
Nike topped Wall Street expectations even as China revenue fell 12%, and the company expects a $986 million tariff refund.
Nike delivered stronger-than-expected quarterly results Thursday, surpassing analyst estimates despite a 12% decline in sales from China, as the athletic apparel giant pushes forward with a high-stakes turnaround strategy aimed at reversing months of revenue erosion.
The sneaker maker's ability to beat forecasts marks a notable moment in its recovery effort, which has been closely watched by investors skeptical about whether leadership can reverse a prolonged sales slump. China, one of Nike's most critical international markets, continued to weigh on overall performance, posting a double-digit revenue drop that underscores the competitive and macroeconomic pressures the brand faces in the region.
Read more Hop-on's Digitalage App Wins Apple App Store Approval →
Among the more significant disclosures, Nike said it anticipates receiving a $986 million tariff refund — a substantial financial cushion that could provide meaningful relief as the company navigates elevated trade costs and restructures its business model. The refund figure highlights how tariff policy continues to ripple through major U.S. retailers with deep global supply chains.
Nike has been working to rebalance its sales channels, reduce dependence on wholesale partners, and reconnect with consumers through direct retail — a strategy that has faced headwinds in a challenging spending environment. The quarterly beat suggests early signs that the turnaround may be gaining traction, even if full recovery remains a work in progress.
Continue reading at US Top News and Analysis.
