NIKE, Inc. (NYSE:NKE) shares were trading more than 5% lower Tuesday afternoon following the company’s reported Q4 results.

Revenue declined 1% year-over-year to $12.2 billion, above the Street estimate of $12.07 billion, as strong trends in Europe, Middle East, Africa (EMEA), and the Asia Pacific and Latin America (APLA) helped offset weakness in China and softer results in North America.

While EPS of $9.90 came in better than the Street estimates, it was driven by below-the-line items as EBIT dollars missed the Street by 8% due to weaker gross margin performance. The company took specific actions in order to manage supply and demand in Greater China following the Covid-related disruption which resulted in a gross margin shortfall along with elevated freight and logistics costs.