By Kelly Cloonan


Nike logged lower profit in its latest quarter as sales in China continued to decline, posing an obstacle for the company's turnaround strategy.

The sneaker and athletic apparel company on Tuesday posted a fiscal third-quarter profit of $520 million, or 35 cents a share, compared with $794 million, or 54 cents a share, a year earlier. Analysts polled by FactSet forecast earnings of 29 cents a share.

Revenue was roughly flat at $11.28 billion, compared with analyst estimates of $11.23 billion.

Wholesale revenue rose 5% to $6.5 billion, while direct revenue fell 4% to $4.5 billion.

Sales ticked up in North America as well as in the Europe, Middle East and Africa region and in the Asia Pacific and Latin America market. Sales slid 7%, though, in China.

The results come as Nike looks to stoke a turnaround, including efforts to rebuild its wholesale channel, grow its running business, clear out old inventory and refocus on the performance sportswear it's known for.

Chief Executive Elliott Hill said the pace of progress is different across Nike's portfolio, and the areas the company prioritized first continue to drive its momentum. The company said its turnaround efforts will continue to affect results this calendar year.

"The work is not finished, but the direction is clear, our teams are moving with focus and urgency, and our foundation is getting even stronger to build the future of Nike," Hill said.

Shares fell 2.7%, to $51.38, in after-hours trading. Through market close, the stock has fallen 17% over the past year.

The company's turnaround strategy, dubbed Win Now, has hit some snags in recent months. Continued weak demand in China, tepid growth in North America and added tariff costs posed further hurdles.

Nike has also been looking to trim costs lately, saying earlier this month it expects to record $300 million in pre-tax charges due to cost-cutting efforts, including job eliminations. The company said earlier this year it would lay off about 775 workers, primarily at distribution centers in Tennessee and Mississippi, as it ramps up its use of advanced technology and automation.


Write to Kelly Cloonan at kelly.cloonan@wsj.com


(END) Dow Jones Newswires

03-31-26 1655ET