The sports giant, which is eyeing a big promotional stretch with the upcoming World Cup and other major competitions, acknowledged disappointment with the pace of turnaround after a difficult run in recent years.

“Our comeback is taking longer than we would like,” chief financial officer Matthew Friend said on a conference call with analysts.

Profits fell 35% to US$520 million while revenues were unchanged at US$11.3 billion for the quarter ending March 31.

Nike has been plagued in recent years with consumer product mismatches that have left it with excess inventories, leading to profit-reducing price cuts.

The company’s sales have been particularly weak in greater China, while executives have also faced questions about product innovation.

Revenues in Greater China fell again in Tuesday’s batch of results, this time by 7%.

Executives also cautioned about soft demand in the Europe, Middle East Africa region, where traffic disruption due to the Middle East war also looms as a negative factor.

Nike executives cautioned that they would see a rise in inventories in EMEA in the fourth quarter.

Shares of Nike sank 9.1% in after-hours trading.