Nike expects to incur $1 billion in additional costs due to President Donald Trump’s tariffs, but the company remains bullish on its turnaround plans. The activewear giant is reducing its supply chain reliance on China and passing the costs onto customers through price increases.
The impact of tariffs and decreased consumer spending was evident in Nike’s fourth-quarter net income, which fell 86% to $211 million. However, CEO Elliott Hill expressed optimism about his plans to “aggressively rightsize” three key franchises: Air Force 1, Dunk, and Jordan labels.
Hill prioritized sports, shifting focus back from the brand’s former emphasis on celebrity collaborations. He stated that Nike’s sport-obsessed teams will create innovative products for specific athletes, making the company more competitive and driving growth.
Analysts, including Neil Saunders of GlobalData, have expressed confidence in Nike’s recovery, noting the brand’s significant market share in sportswear. Despite challenges, Nike has a solid foundation to build upon, and Hill’s plans aim to accelerate growth and defend the company’s market share.
Source: https://edition.cnn.com/2025/06/27/investing/nike-earnings-tariffs