Nike (NKE) reported mixed fourth quarter results. The athletic apparel giant reported adjusted earnings of $1.01 per share compared to the $0.85 estimate. However, revenue of $12.61 billion fell short of the $12.86 billion estimate.

Morningstar senior equity analyst David Swartz thinks it was the revenue miss that sent shares lower in after-hours trading. The company reported slightly better-than-expected revenue numbers in China. Swartz thinks "the China numbers are still pretty low compared to what Nike should be doing and can do in China," adding that its sales recovery in the country is likely taking longer than many had hoped.

On what could cause Nike to reignite sales growth, Swartz thinks new products will help, but that the impact likely won't be felt until late into fiscal 2025.

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This post was written by Stephanie Mikulich.