Nike plans to reduce its reliance on China for U.S.-bound products to offset the financial blow from President Donald Trump’s new tariffs, as the sportswear giant posted better-than-expected fourth-quarter results and a milder revenue forecast.
Facing rising costs from U.S. tariffs on imports, Nike said on Thursday it would significantly cut its dependence on China for U.S. production. China currently accounts for about 16% of the company’s imported footwear to the U.S., but that share will drop to the "high single-digit percentage range" by May 2026, according to Chief Financial Officer Matthew Friend.
The announcement came after Nike topped estimates for its fiscal fourth quarter and projected a smaller-than-expected revenue decline for the first quarter, pushing shares up 11% in extended trading.
“We will optimize our sourcing mix and allocate production differently across countries to mitigate the new cost headwind into the United States,” Friend said on a post-earnings investor call, adding that Nike may also cut corporate costs and has already raised product prices in the U.S.
Analysts estimate that Trump's sweeping tariff regime could add $1 billion to Nike's costs. Still, industry experts believe Nike may retain its market share as price increases are expected across the sportswear sector.
Nike’s renewed focus on performance categories such as running is beginning to pay off. The company saw a return to growth in running shoes in Q4, led by popular models like the Pegasus and Vomero, while scaling back production of casual sneakers like the Air Force 1.
While Nike expects a mid-single-digit revenue drop in Q1—less severe than the 7.3% decline forecast by analysts—China remains a challenge due to economic headwinds and intensifying competition. The company’s Q4 revenue declined 12% to $11.10 billion, beating expectations of a 14.9% drop.
President Donald Trump has filed a defamation lawsuit against the BBC over edited footage of a speech that made it appear he encouraged supporters to ...
Ford Motor Company said on Monday it will take a $19.5 billion writedown and scrap several electric vehicle (EV) models, marking a major retreat from ...
Schools across Cambodia and Thailand were forced to close on Monday as border clashes between the two countries escalated, with the death toll reachin...
Police in Providence are going door to door for home surveillance footage as the hunt continues for the shooter who killed two Brown University studen...
Ukrainian President Volodymyr Zelenskyy engaged in high-level talks in Berlin from 14-15 December, with German Chancellor Friedrich Merz, U.S. envoys,...
President Donald Trump has filed a defamation lawsuit against the BBC over edited footage of a speech that made it appear he encouraged supporters to storm the U.S. Capitol, marking an international extension of his ongoing battle against media coverage he deems inaccurate or biased.
Ford Motor Company said on Monday it will take a $19.5 billion writedown and scrap several electric vehicle (EV) models, marking a major retreat from its battery-powered ambitions amid declining EV demand and changes under the Trump administration.
Schools across Cambodia and Thailand were forced to close on Monday as border clashes between the two countries escalated, with the death toll reaching at least 40 and hundreds of thousands of people displaced, according to officials and local media.
Ukrainian President Volodymyr Zelenskyy engaged in high-level talks in Berlin from 14-15 December, with German Chancellor Friedrich Merz, U.S. envoys, and European leaders, focusing on security guarantees and the framework for a potential peace deal with Russia.
Russia’s human rights commissioner, Tatyana Moskalkova, has said that Ukraine has not provided Moscow with a list of thousands of children it alleges were taken illegally to Russia, despite the issue being discussed during talks in Istanbul.
An explosive device found in a vehicle linked to one of the alleged attackers in Bondi shooting has been secured and removed according to Police. The incident left 12 people dead.
Syrian President Ahmad al-Sharaa has offered condolences to President Donald Trump following an ISIS attack near the ancient city of Palmyra that killed two U.S. soldiers and a civilian interpreter, Syrian and U.S. officials said Sunday.
At least 17 people, including students, were killed and 20 others injured after a school bus fell off a cliff in northern Colombia on Sunday, authorities said.
At least 14 people have died and 32 others were injured after flash floods swept through Morocco’s Atlantic coastal city of Safi on Sunday, authorities said.
Iran has rolled out changes to how fuel is priced at the pump. The move is aimed at managing demand without triggering public anger.
U.S. stock markets closed lower at the end of the week, as investors continued to rotate out of technology shares, putting pressure on major indices.
The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) cut its benchmark interest rate by 25 basis points to a range of 3.50% to 3.75% following its two-day policy meeting, according to an official statement issued on Wednesday, 10 December.
China has carried out a major test of a new “super wireless” rail convoy, a technology that could reshape the future of heavy-haul transport.
Paramount Skydance (PSKY.O) has launched a $108.4 billion hostile takeover bid for Warner Bros Discovery (WBD.O). The escalation follows a high-stakes battle that had appeared to end last week when Netflix secured a $72 billion deal for the studio giant’s assets.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment