Nike earnings, revenue top estimates even as China sales drop 12%
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- Nike posted fiscal fourth-quarter adjusted EPS of 20 cents, running well ahead of the 13-cent consensus estimate from LSEG analysts
- Nike reported Q4 revenue of $10.97 billion, beating the $10.86 billion analysts had expected
- Nike's gross margin rose 8.9% during the quarter, with nearly $986 million of the lift coming from an expected tariff refund
- Analysts at LSEG had deliberately excluded the $986 million tariff refund gain from their earnings expectations, meaning the headline beat compares against an artificially lower bar
- Even with the top-line beat, Nike's China market sales fell 12% in the quarter, marking another decline in that key region
Why it matters: The standout 20-cent EPS versus a 13-cent estimate looks decisive, but because analysts excluded the $986 million tariff refund from expectations, the reported margin strength inflates the comparison; investors will likely push next quarter to see whether underlying margins hold without that one-time boost, while the 12% China drop shows the company's biggest structural challenge isn't going away.
