STORY: Nike shares tumbled in extended trade Tuesday, after it forecast a surprise drop in fourth-quarter sales.
The sportswear giant blamed weakness in China and slow progress in clearing older inventory.
That outlook sent its stock down more than 9%.
Nike's revenue was flat at just under $11.3 billion in the third quarter, but just above analyst estimates.
However, CFO Matt Friend projected a drop of up to 4% in current-quarter sales.
Sales in China fell 10% and Friend said they are expected to fall 20% in the fourth quarter.
He cited volatility from rising oil prices and ongoing fighting in the Middle East as factors.
The company has struggled in its second-largest market, which accounts for 15% of annual sales.
It has faced market share losses versus local competitors Anta and Li Ning.
Nike is also expecting to end the fourth quarter with excess inventory.
Under CEO Elliott Hill, it has pulled back promotions, stepped up innovation and refocused on core franchises like running.
The move comes as the company works to reset the business after years of excess inventory and uneven demand across North America and China.
