Nike Q1 Revenue Falls 4% to $11.2B as China Sales Slide 26%

Nike's revenue fell 4% on a reported basis to $11.2 billion in its fiscal first quarter, the company said Thursday, as the sportswear giant's turnaround remains a work in progress.

Net income came in at $0.7 billion, down 2% year over year, according to the company's results.

Greater China was one of the biggest drags on Nike's topline. Sales in the region dropped 26% year over year during the quarter. Two other major weak spots were Nike's sportswear business and the Jordan brand.

For the full year, Nike projects revenue will decline by high single digits.

Despite the gloomy overall results, the company is seeing signs of promise in one of its core categories: running. The category stood out as a bright spot in an otherwise difficult quarter for the brand.

The running performance matters for Nike because it sits at the heart of the company's product and brand strategy, and strength there could signal where the broader turnaround is heading. With Nike forecasting a high single-digit revenue decline for the full fiscal year, the question for marketers and retail partners is whether momentum in running can offset continued weakness in China, sportswear and Jordan.