Updated version 1 - Nike’s quarterly sales missed expectations, with a weak Chinese market and intensified competition as the main reasons.

Added share price and background information in the second paragraph, with additional details in the fourth paragraph.

Reuters, October 1 - Nike NKE.N reported quarterly revenue on Thursday that fell short of analysts' expectations, as the company continues to face weak demand in the Chinese market and mounting competitive challenges, causing investors to worry about CEO Elliott Hill's pace in driving business transformation.

Like many U.S. retailers, Nike is grappling with cautious consumer spending amid persistently high inflation. However, analysts say its difficulties mainly stem from strategic missteps and the failure to launch enough attractive new products, resulting in increased promotions and discounts. Its share price fell 4% in after-hours trading.

According to data compiled by London Stock Exchange Group (LSEG), the sportswear giant posted first-quarter sales of $11.2 billion, below the analysts’ average estimate of $11.32 billion.

However, thanks to lower warehousing and logistics costs, gross margin for the quarter ended August 31 increased by 60 basis points to 42.8%.

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