By Jinjoo Lee

Nike's enduring popularity means it can command full prices--both for its Air Jordans and its shares, it seems. Being cash rich certainly doesn't hurt.

The company reported weak results Thursday. Revenue declined by 38% from a year earlier in its fourth fiscal quarter, ended May 31. That was worse than the 28% drop that analysts had expected. The company swung to a net loss, also a surprise. Inventories were up 31% compared with the prior year. Still, shares were only down around 4% in after-hours trading.

Management placed great emphasis on e-commerce in the earnings call late Thursday, even though it wasn't enough to offset store closures. Digital sales grew 75% last quarter compared with a year earlier and accounted for roughly 30% of total revenue. The company is planning to double down on digital investments as part of its broader effort to shift more toward direct-to-consumer selling, which yields better margins than wholesale.

One bright spot was the swift recovery in China, one of Nike's fastest-growing markets. Revenue there actually grew 1% from a year earlier excluding currency changes. That's a good sign for other geographies that began reopening their stores later. For the current fiscal year ending next May, Nike said revenue growth in the second half should offset weakness in the first half--leading to full-year revenue that is flat or up compared with the prior year.

What seems clear is that Nike continues to have better brand power than its peers. On a Wednesday conference call with equity research firm BTIG, an executive for retailer Academy Sports + Outdoors indicated that Nike sales declined less than other brands and rebounded faster. Meanwhile, Nike's name holds strong value in China. In a survey of Chinese consumers conducted by Citigroup, the highest percentage of respondents--23%--said they wished to purchase Nike over the next several months, over other foreign brands like Abercrombie & Fitch and Versace. The runner-up brand was Adidas at 14%.

Despite weakness in sales, Nike kept launching new products last quarter--including Jordan Retro 5's--all of which sold out on its SNKRS app, BTIG's Camilo Lyon noted in a research report. For investors, Nike's strong cash position means they continue to get dividends. The shares yield just 1%, but that is better than Adidas, which had to halt its dividend as a condition to access a revolving credit facility. Lululemon, one of the strongest performers in apparel, doesn't have a dividend policy.

Nike still has to prove it can rebound in the coming months. But it remains well ahead of the competition.

Write to Jinjoo Lee at jinjoo.lee@wsj.com