Nike reported stronger-than-expected fourth-quarter earnings and revenue on Tuesday, despite a sharp decline in sales in its Greater China market.

According to CNBC, the sportswear giant posted adjusted earnings of 20 cents per share on revenue of $10.97 billion, beating analysts' forecasts of 13 cents per share and $10.86 billion in revenue.

The company said its results were boosted by an expected tariff refund worth nearly $986 million after the US Supreme Court struck down many of President Donald Trump's global tariffs.

According to CNBC, the refund added 52 cents per share to Nike's quarterly earnings, although analysts had excluded the gain from their estimates.

Nike's net income rose to $1.07 billion from $211 million a year earlier, while revenue slipped 1 per cent compared with the same period last year.

Sales in North America, Nike's biggest market, increased 3 percent to $4.83 billion. However, revenue in Greater China fell 12 per cent to $1.30 billion.

Chief executive Elliott Hill said the company remains focused on improving its performance in China.

He said: "Overall, the results aren’t there yet."

Hill added: "We know we’re not living up to our full potential, particularly in Nike sportswear and Jordan streetwear, where sell through remains challenged, impacting both current discounting and future order books."

Nike also said it expects earnings to remain broadly flat during the first half of fiscal 2027 as it continues its turnaround strategy.