Nike (NKE) stock fell 5% Thursday in after-hours trading after the retailer announced fiscal fourth quarter revenue that fell short of Wall Street's expectations.
The company has been trying to reignite sales growth in what has been a lackluster year for the stock so far.
The company reported quarterly revenue of $12.61 billion, below Wall Street's estimates for $12.86 billion, while Nike's $0.99 earnings per share was above analysts' expectations of $0.66.
Nike's gross margins increased to 44.7% in the fourth quarter, up from 43.6% in the same period a year ago, but came in below analyst expectations for 45.3%.
The company's stock entered the release down more than 17% over the last year, a far cry from the S&P 500's (^GSPC) 26% gain, as investors grew wary of slowing growth at the retailer.
Wall Street has been closely watching Nike's product pipeline as the Oregon-based company works to fend off competition in its core athletic footwear market from rivals like Adidas (ADDYY) and relative upstarts like On (ONON) and Deckers' (DECK) Hoka brand.
Bank of America's Lorraine Hutchinson noted she doesn't expect potential benefits from innovation to impact metrics in the first half of Nike's fiscal year 2025 (which already began on June 1).
"Building evidence of Nike's innovation pipeline would bolster confidence in a [second half of 2025] turnaround," Hutchinson wrote ahead of the earnings release.
Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
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