Nike reports ongoing sales declines amid weak China demand

Nike’s shares dropped 7% after it reported another sales decline in its fourth quarter as it navigates an increasingly challenging operating environment, particularly in China.

The sportswear giant posted a fourth-quarter profit of $1.07 billion, while revenue fell 1% to $10.97 billion from $11.1 billion, topping Wall Street forecasts.

Wholesale revenue grew 4%, but direct revenue declined 7%.

Regionally, sales rose 3% in North America and 1% in Asia Pacific and Latin America. However, sales fell 1% in Europe, the Middle East, and Africa, while China recorded the steepest decline, with sales plunging 12%.

Notably, sales in China plunged 12%.

Amid these mixed results and an ongoing turnaround plan, Nike named Pfizer’s David Denton as its new CFO, effective August 17.