Nike on Tuesday posted quarterly earnings and revenue that topped Wall Street expectations, despite another sales decline in its key China market.

Here’s what Nike reported for its fiscal fourth quarter compared with analysts expectations, according to consensus estimates from LSEG:

• Earnings per share: 20 cents adjusted vs. 13 cents expected
• Revenue: $10.97 billion vs. $10.86 billion expected

The company said its gross margin increased 8.9% during the quarter, largely due to an expected tariff refund of nearly $986 million after the Supreme Court struck down many of President Donald Trump‘s global duties. The tariff refunds contributed 52 cents to Nike’s earnings per share for the quarter.

Analysts excluded that gain from their adjusted earnings expectations.

Nike posted net income of $1.07 billion, or 72 cents per share, compared with $211 million, or 14 cents per share, a year earlier.

Revenue climbed to $10.97 billion, down 1% from $11.10 billion in the prior-year period.

Nike’s revenue in North America, its largest market, climbed 3% to $4.83 billion. It fell short of analysts’ expectations of $4.88 billion, according to StreetAccount.

Sales in Nike’s Greater China market dropped 12% to $1.30 billion. Even so, the company beat Wall Street’s expectations of $1.24 billion in revenue.

“While we continue to face top-line headwinds, we’re encouraged by progress in performance product and are focused on consistent execution, improved profitability and scaling our wins to realize our full potential,” CEO Elliott Hill said in a statement.

Shares of Nike dropped more than 4% in extended trading Tuesday.

For the full fiscal 2026, Nike reported net income of $3.11 billion, or $2.10 per share, compared with $3.22 billion, or $2.16 per share, in the prior year.

The earnings come as Hill has been trying to reposition Nike for growth amid slumping sales. The company previously warned its turnaround would not be linear as certain parts of the business improve at different rates.

Hill previously said that the segments that Nike initially focused on turning around are beginning to see “momentum.”

The turnaround effort is also placed against macroeconomic uncertainty, fueled by tariffs, the war in the Middle East, soaring gas prices and more. CFO Matt Friend said on the third-quarter earnings call with analysts that Nike could face unexpected impacts from the broader backdrop, including volatility from rising oil prices and lowered consumer confidence.

In April, Nike instituted a sweeping round of layoffs, cutting 1,400 roles across the organization in its second workforce reduction of the year.

Last week, the company announced a planned CFO transition, with former Pfizer executive David Denton taking over for Friend effective Aug. 17.

Still, Nike has seen a boom from the World Cup, hosted across North America this summer. While it’s not an official sponsor, the company saw its advertisements massively outpace sneaker rival Adidas and gain significant traction across social media.