Nike has reported a strong Q4 sales and earnings ahead of Wall Street expectations, but tariffs negatively impacted its sales and related earnings in China, causing a 7% drop in sales. The company's gross margin decreased from 41.5% to 40.2%, largely due to tariff costs in North America. Nike's stock was down slightly in after-hours trading following the news. The firm has been in a slump since its previous CEO, John Donahoe, focused on reversing its strategy of too many retro sneakers and selling directly to consumers.