Nike’s efforts to reduce discounting, streamline inventory, and diversify its supply chain are early but promising signs of a turnaround.

Key TakeawaysNike shares surged 15% Friday after the shoe and athletic apparel maker beat estimates for the fourth quarter.Sales and profit fell less than expected year-over-year as new CEO Elliott Hill's turnaround plan progresses.

Historically, NKE stock has decreased 65% of the time after earnings announcements, with a median one-day drop of 6.8% and a maximum observed decline of 20%.