Updates

** Nike Inc NKE.N shares rise ~3% to $42.23, recovering earlier losses as investors welcomed early signs of improvement in profit margin

** Co beats Q4 revenue and profit expectations and forecasts first-quarter gross margin to be slightly positive

** Q4 revenue in North America, its largest market, rose 3%, while sales in Greater China, its third-largest market, fell 17% compared to co's previous expectations of a 20% fall

** However, persistent weakness in China and a forecast of further overall revenue drop through the first half of fiscal 2027 signal a prolonged turnaround

** "We expect FY28 to be the first 'normal' year with both top-line growth and continued margin improvement from cost initiatives and improved full-priced selling," say analysts at Bernstein

** As of last close, stock has dropped about 35.6% YTD