Nike Inc. (NKE) experienced a sharp after-hours plunge of 5.02% on Tuesday, following the release of its fiscal fourth-quarter results.

The athletic wear giant reported earnings that significantly surpassed Wall Street estimates, but the beat was largely attributed to a one-time benefit from an expected tariff recovery. Excluding this 52-cent per share benefit, the underlying business showed persistent challenges, including a 1% year-over-year decline in total revenue to $10.97 billion. Sales in the critical Greater China region fell 12%, while direct-to-consumer revenue dropped 7%, highlighting ongoing top-line headwinds.

Investor sentiment soured as the results underscored concerns about the pace of Nike's multi-year turnaround effort under CEO Elliott Hill. Despite progress in North America, the company continues to grapple with weak consumer demand, intense competition, and operational missteps. The market reaction reflects growing impatience with the timeline for recovery, overshadowing the temporary profit boost from the tariff refund.