Nike Inc. reported quarterly sales that fell short of expectations — adding urgency to the world’s largest sportswear company’s efforts to strengthen ties with its retail partners and speed up its product development. 

Revenue fell 1.7 per cent to US$12.6 billion for the fiscal fourth quarter ended May 31, missing the average of analyst estimates. Greater China revenue for the quarter was $1.86 billion, beating the average estimate, while earnings per share also surpassed expectations. 

Nike shares fell 6 per cent at 5 p.m. in extended New York trading. The stock has declined 13 per cent this year through Thursday’s close. 

The results show the weakness Nike has reported in recent quarters is persisting. Sales via the company’s website, app and stores declined 8 per cent and fell short of Wall Street’s expectations. Converse, known for its Chuck Taylor sneakers, saw revenue plummet 18 per cent due to soft sales in both North America and Western Europe. 

The company will update its outlook for this fiscal year, Chief Financial Officer Matt Friend said in the company’s earnings statement, citing unspecified challenges from the previous quarter.

“We are taking actions to reposition Nike to be more competitive, and to drive sustainable, profitable long-term growth,” Friend said. Nike traditionally gives its outlook during its call with analysts following the release of results. 

Bloomberg Intelligence analyst Poonam Goyal said the underperformance at Nike’s own sales channels “comes by surprise and is a reason for concern, as the activewear giant could be turning its core shoppers away due to lack of newness.” She added that the performance in wholesale, which beat estimates, is a “positive indicator for its revived and existing wholesale relationships.”

Nike Chief Executive Officer John Donahoe is cutting $2 billion in costs and slashing 2 per cent of the workforce, with layoffs recently hitting the company’s European headquarters near Amsterdam and its Boston-based Converse brand. 

Amid a wave of competition from upstarts such as On Holding AG and Deckers Outdoor Corp.’s Hoka running shoes, Donahoe has said he’ll prioritize sports, new products and wholesale partners that had largely received less attention from the company as it sought to boost its own stores and websites.