Nike's stock took another hit Wednesday, sliding to a 52-week low in premarket trading after the sneaker giant reported quarterly results that beat Wall Street's expectations but came with a sobering warning: the slump in its once-dominant streetwear business isn't going away anytime soon.

The company's fourth-quarter revenue of $10.97 billion edged past the $10.86 billion analysts were looking for, and adjusted earnings of 20 cents per share topped the 13-cent estimate. But investors zeroed in on the cautious outlook and the continued weakness in Nike's lifestyle categories — the very products that fueled its growth for years.

Nike's biggest headache right now is its Sportswear and Jordan Streetwear businesses, both of which posted double-digit sales declines during the quarter. Executives pointed to a volatile macroeconomic environment and pressured consumer spending, which are weighing on discretionary purchases. In other words, people are still buying sneakers, but they're not buying as many of the high-margin lifestyle shoes that Nike has long relied on.

Overall revenue fell 1% from a year earlier on a reported basis and 4% in constant currency. Modest growth in North America was offset by weaker sales in Greater China, Europe, the Middle East and Africa, and at Converse. Nike Brand revenue was flat at $10.7 billion, while Nike Direct revenue dropped 7% to $4.1 billion. Wholesale revenue, however, grew 4% to $6.6 billion, suggesting that retail partners are picking up some of the slack.

The bright spots were in performance categories. Running, training and football all posted mid-single-digit growth. Nike said its running business delivered five consecutive quarters of double-digit growth, adding about $1 billion in revenue during fiscal 2026. That's a clear sign that athletes and fitness enthusiasts are still loyal to the brand, even if fashion-conscious consumers are cooling on the latest Jordans.

One notable item in the quarter was a one-time $986 million benefit from the recovery of tariffs imposed under the International Emergency Economic Powers Act. More than $300 million of that has already been received in cash, with the rest recorded as accounts receivable. That tariff recovery helped lift gross margin by a whopping 890 basis points to 49.2%.

Looking ahead, Nike's outlook remains cautious. The company expects revenue to decline by a low- to mid-single-digit percentage over the coming quarters. Management warned that the second quarter is likely to be weaker than the first, thanks to tough year-over-year comparisons, elevated promotional activity in Europe, the Middle East and Africa last year, and the timing of North American wholesale shipments.

As for the streetwear business, don't expect a quick turnaround. Nike said Sportswear and Jordan Streetwear sales will remain negative throughout fiscal 2027 before improving in the second half of the year. That's a long time to wait for a recovery in what was once the company's crown jewel.

On the plus side, Nike now expects gross margin expansion to begin in the first quarter of fiscal 2027, earlier than previously anticipated. The company's outlook assumes an additional 10% tariff through July, increasing to 15% afterward. Management also expects growth to expand beyond running into training, basketball and ACG during fiscal 2027. And to help revive its Sportswear business, Nike plans to introduce more than a dozen new footwear models in the second half of the fiscal year.

Nike is also investing in its stores. The company refreshed more than 15,000 wholesale retail locations globally and upgraded more than 150 Nike Direct stores with sport-focused formats. It plans to modernize half of its company-owned store fleet by the end of fiscal 2027.

For now, though, the market is focused on the negatives. Nike (NKE) shares were down 3.36% at $39.67 in premarket trading Wednesday, hitting a new 52-week low. The stock has been under pressure for months as investors wait for signs that the streetwear slump has bottomed out. Today's report suggests they'll have to keep waiting.