Nike Inc. reported profit that fell just short of analysts’ expectations as inventories continued to climb. The sportswear giant’s sales outpaced estimates.

Global revenue rose 5% to $12.8 billion in the fiscal fourth quarter ended May 31, above Wall Street’s expectation of $12.6 billion. Gross margin — a key gauge of profitability — was also higher than expected, while earnings per share fell a cent short of Wall Street’s average estimate.

Chief Executive Officer John Donahoe and Nike’s management have been working through excess merchandise with discounts, which has weighed on margins. Inventories rose slightly in the quarter compared with the prior year period.

Performance in the Greater China region improved as Nike slowly recovers in the crucial growth market where it has struggled for the past two years. Revenue in the country was $1.8 billion for the quarter, topping analysts’ projections.

The shares alternated between losses and gains in late trading on Thursday in New York. The stock has fallen 3.1% this year through Thursday’s close.