Nike said Tuesday that its quarterly profit had fallen 31 percent, to $700 million, despite a slight rise in revenue.
The footwear company, which is based in Beaverton, Ore., has spent the past year trying to stabilize its business under its chief executive, Elliott Hill. Since taking the helm a year ago, Mr. Hill has initiated a broad turnaround strategy aimed at reversing recent losses of market share.
Inventories in the quarter that ended in August fell 2 percent from a year earlier because of increased product costs and higher tariffs, the company noted.
Nike executives acknowledged that the company’s recovery would take a while to materialize.
“Progress will not be linear,” Nike’s finance chief, Matthew Friend, said in a statement. “While we navigate several external headwinds, our teams are focused on executing against what we can control.”
Following the quarterly report, shares of Nike rose 1.3 percent in after-hours trading.
When Nike announced its previous quarterly results in June, executives acknowledged that restructuring efforts had taken a short-term toll on financial performance. However, the company expressed optimism that the decline in profit would ease in the coming quarters.
Nike also said Tuesday that its wholesale revenue had increased 7 percent in the latest quarter. The company has been trying to rebuild trust with wholesale partners and streamline its supply chain, both of which suffered amid prior strategic shifts.
Under Mr. Hill’s immediate predecessor as chief executive, John Donahoe, Nike reorganized teams based on consumer categories like men’s and women’s, rather than by sport. That change was meant to boost Nike’s lifestyle business, but critics argue that it caused the brand to lose its edge in core areas like running and training.
Mr. Hill has reversed course. In June, he announced that Nike would return to a sports-centric structure, and by late August, the company had begun realigning internal teams. As part of the overhaul, about 1 percent of the work force was cut, and most employees were reassigned by late September.
Kailyn Rhone is a Times business reporter and the 2025 David Carr fellow.
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