Nike has beaten quarterly revenue expectations, but warned its turnaround will take longer than hoped as weak trading in China and cautious consumer spending continue to impact the business.

The retailer reported fourth-quarter revenue of £8.3bn, down one per cent on a reported basis and four per cent on a currency-neutral basis, ahead of analyst expectations of £8.2bn.

Nike said full-year revenue came in at £35bn, flat on a reported basis and down two per cent on a currency-neutral basis.

The Nike brand generated fourth-quarter revenue of £8.1bn, flat on a reported basis but down three per cent on a currency-neutral basis, as growth in North America was offset by declines in Greater China and EMEA.

Wholesale revenue rose four per cent to £5bn, helped by growth in North America, as Nike continues to rebuild relationships with retail partners following its previous push into direct-to-consumer.

However, Nike Direct revenue fell seven per cent to £3.1bn, driven by a 12 per cent drop in Nike brand digital sales and a seven per cent decline across Nike-owned stores.

The retailer’s Converse division also remained under pressure, with revenue plunging 32 per cent to £184m as sales fell across all territories.

Nike posted net income of £830m for the quarter, up sharply on last year, while diluted earnings per share came in at 72 cents. The result was boosted by an expected £743m recovery linked to tariffs, which added 52 cents to earnings per share.

Chief executive Elliott Hill, who returned to lead the business in 2024, said Nike had made “meaningful structural improvements” during the year, but admitted the business continued to face top-line pressure.

“We’re encouraged by progress in performance product and are focused on consistent execution, improved profitability and scaling our wins to realise our full potential,” he said.

Reuters reported that Hill told analysts Nike was “not living up to our full potential”, with progress in its recovery plan still uneven.

Greater China remains one of Nike’s biggest challenges, with sales in the region falling 17 per cent on a constant-currency basis in the fourth quarter. The decline deepened from the previous quarter as the brand faced weaker demand, excess inventory and growing competition from local rivals including Anta and Li Ning.

Nike said North America, its largest market, offered a brighter spot, with revenue rising three per cent during the quarter.

Chief financial officer Matthew Friend said the operating environment became more difficult through the quarter and was not expected to improve over the next six months.

The company also forecast a further revenue decline through the first half of its 2027 financial year, as it works through excess stock and continues to reset parts of the business.

Nike shares fell in extended trading following the update, as investors looked for clearer evidence that the sportswear group’s recovery plan was beginning to gain traction.

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