(Alliance News) - Nike Inc shares eased after hours on Thursday after the company reported weaker fourth quarter results, though revenue declined by less than forecast.

Shares in the Beaverton, Oregon-based athletic wear company traded 1.1% lower after hours in New York on Thursday. They had earlier closed up 2.8% at USD62.54

In its fourth quarter ended May 31, net income tumbled 86% to USD211 million from USD1.50 billion a year prior, or to USD0.14 from USD0.99 on a basic per-share basis.

Revenue was USD11.10 billion, up 12% from USD12.61 billion. Of this, Nike Brand revenue declined 11%, driven by falls globally. Nike Direct revenue fell 14% due to a 26% drop in Nike Brand Digital, partially offset by a 2% increase in Nike-owned stores.

The decline in headline revenue was less than the 15% expected by LSEG-cited analyst consensus.

Gross margin was 40.3% in the quarter, compared to 44.7% a year ago.

"While our financial results are in-line with our expectations, they are not where we want them to be," said Chief Executive Officer Elliott Hill.

"Moving forward, we expect our business to improve as a result of the progress we're making through our Win Now actions. As we enter a new fiscal year, we are turning the page and the next step is aligning our teams to lead with sport through what we are calling the sport offense. This will accelerate our Win Now actions to reposition our business for future growth."

For 2025, net income declined 44% to USD3.22 billion from USD5.70 billion, or to USD2.17 from USD3.76 on a basic per-share basis. Revenue fell 10% to USD46.31 billion from USD51.36 billion.

2025 gross margin was 42.7%, down from 44.6% in 2024.

Nike said of the new strategy: "The sport offense realignment will focus on driving distinction within key sports, building a complete product portfolio, creating stories to inspire and connect with consumers, and elevating and growing the entire marketplace."

Nike has declared a fourth quarter dividend of USD0.40, up from USD0.37 last year. This brings the total 2024 payout to USD1.57 per share, up from USD1.45.

The company did not provide guidance in its report.

By Aidan Lane, Alliance News reporter

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