Nike, the global athletic apparel giant, reported a mixed performance in its fourth quarter results. While the company surpassed earnings estimates, its revenue fell short of expectations. The news sent shares down more than 5% in after-hours trading.

According to Morningstar senior equity analyst David Swartz, the revenue miss was the main concern for investors. Nike reported adjusted earnings of $1.01 per share, outperforming the estimated $0.85. However, its revenue of $12.61 billion fell short of the projected $12.86 billion.

One area of slight optimism was China, where Nike reported slightly better-than-expected revenue numbers. However, Swartz believes that these numbers are still relatively low compared to Nike's potential in the Chinese market. He suggests that the company's sales recovery in China is taking longer than anticipated.

Nike's sales growth is expected to be reignited through the introduction of new products. However, Swartz believes that the impact of these new releases will not be felt until late in fiscal 2025.

The company recently opened a significant retail store, the "House of Flight," in Beijing, highlighting its focus on the Chinese market. Nike has also invested heavily in marketing efforts in China. However, the progress of Nike's recovery in the country appears to be slower than expected.

To reinvigorate sales growth, Nike is banking on product innovation. The company has several new running shoes and technologies in the pipeline, including releases timed around major sporting events such as the Olympics. However, the impact of these new products on sales is not expected to be significant until late in fiscal 2025.

The economic environment, including discretionary spending and high inflation, may also affect Nike's performance. The sportswear market overall has been uneven, with companies like Puma, Adidas, and Under Armour also facing challenges.

As Nike prepares for its upcoming earnings call, investors will be looking for management insights regarding the gross margin, sales outlook, and recovery in major regions such as North America, Western Europe, and China. Nike strives to achieve double-digit sales growth in China, while aiming for positive growth in North America and Western Europe.

Overall, Nike's mixed Q4 results indicate a revenue miss and slower sales recovery in China. The company's focus on product innovation and marketing campaigns in key markets will be key factors to watch as it works towards reigniting sales growth.

Note: This news article is based on the information provided and may not include all relevant details or future developments.