The results were better than analyst expectations but the struggling company's share price nevertheless sank by more than four percent in after-hours trading.

The Oregon-based sportswear manufacturer posted revenues of $11.3 billion for the quarter ended on February 28, down from the same period last year.

On a currency-neutral basis, revenues fell seven percent.

Nike's direct-to-consumer business, which include Nike-owned stores, recorded a steeper decline, with revenues dropping 12 percent to $4.7 billion. Online sales were particularly hit, plunging 15 percent.

The progress made on strategic priorities "reinforces my confidence that we are on the right path," said Elliott Hill, President and CEO of Nike.

Hill took charge of Nike in mid-October, replacing John Donahoe, who retired. Hill had held several senior positions at Nike before retiring in 2020, after a 32-year career.

Since his return, the CEO has implemented the "Win Now" strategic plan to turn around the equipment manufacturer, which has been in decline for several years.

Despite the downturn, the company returned approximately $1.1 billion to shareholders during the quarter through dividends and share repurchases.

Nike's wholesale business fared slightly better than its direct channels, declining seven percent on a reported basis to $6.2 billion.

Converse, a Nike subsidiary, saw an 18 percent revenue decline to $405 million.

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NIKE