Shares of Nike Inc. slipped 1 percent to $62 on Thursday afternoon following fourth-quarter 2025 results, which were in-line with expectations, but not as high as the company would like.

Net income at the Beaverton, Ore.-based company in the fourth quarter fell 86 percent to $211 million from $1.5 billion in the year-ago period. Diluted earnings per share dropped to 14 cents from 99 cents. And sales tallied $11.1 billion, down 12 percent from $12.6 billion.

The company’s fourth-quarter results narrowly beat Wall Street’s best guess. Analysts, on average, were expecting earnings per share of 13 cents, according to LSEG.

By business segment, the company said Nike brand’s fourth-quarter revenues were $10.8 billion, down 11 percent, driven by declines across all geographies. Nike Direct revenues were $4.4 billion, a decline of 14 percent, due to a 26 percent decrease in Nike Brand Digital. That was was partially offset by a 2 percent increase in Nike-owned stores.

As for Nike’s wholesale channel, which the company has steadily worked on rebuilding, revenues in the quarter were $6.4 billion, off 9 percent.

Nike said footwear revenues dropped 13 percent to $7.2 billion. Apparel sales in the fourth quarter fell 10 percent to $3 billion.

Elliott Hill, who took on the role of president and chief executive officer of the company in October, said in a statement that while the company’s financial results are in-line with its expectations, “they are not where we want them to be.”

“Moving forward, we expect our business to improve as a result of the progress we’re making through our Win Now actions,” Hill said.

Matthew Friend, executive vice president and chief financial officer of Nike, added that the fourth quarter “reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here.”

“I am confident in our ability to navigate through this current dynamic and uncertain environment by focusing on what we can control and executing our Win Now actions,” Friend added.

Looking ahead, Nike did not provide guidance for fiscal 2026, but said that its sport offense realignment next year “will focus on driving distinction within key sports, building a complete product portfolio, creating stories to inspire and connect with consumers, and elevating and growing the entire marketplace.”

“As we enter a new fiscal year, we are turning the page and the next step is aligning our teams to lead with sport through what we are calling the sport offense,” Hill added. “This will accelerate our Win Now actions to reposition our business for future growth.”

Looking at the full fiscal year, Nike reported revenues of $46.3 billion, down 10 percent. Net income dropped 44 percent to $3.2 billion

By business segment, the company said Nike brand revenues for the year were $44.7 billion, down 9 percent, driven by declines across all geographies. Nike Direct revenues were $18.8 billion, down 13 percent on a reported basis, due to a 20 percent decrease in Nike Brand Digital, while Nike-owned stores were flat.