04:54 PM EDT, 06/27/2024 (MT Newswires) -- Nike ( NKE ) late Thursday reported a surprise decline in fiscal fourth-quarter revenue even as its earnings outperformed estimates.

The athletic footwear and apparel maker's revenue fell to $12.61 billion during the three months ended May 31 from $12.83 billion a year earlier. Analysts polled by Capital IQ had expected sales to rise to $12.86 billion.

The stock was down 6.3% in after-hours trading.

Earnings rose to $0.99 per share from the year-ago period's $0.66, topping the Street's GAAP view of $0.83.

Revenue for the Nike brand slipped 1% year over year to $12.15 billion as footwear fell 4%. Consolidated North American sales dropped 1%, while Europe, the Middle East and Africa reported a 2% decrease.

Gross margin improved 110 basis points year over year to 44.7% in the fourth quarter in part due to pricing actions, as well as lower ocean freight rates and logistics costs, Nike ( NKE ) said.

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