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.
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Nike is stepping back from China-based production for its U.S. market to dodge tariff-related costs, aiming to shift its sourcing strategy by 2026.
A notorious hacking group known as “Scattered Spider” has breached the networks of several airlines in the US and Canada this month, according to the FBI and cybersecurity experts.
Severe storms overnight triggered mass flight cancellations and delays at Atlanta’s Hartsfield-Jackson Airport, just as the busy 4th of July travel period begins.
France will impose its toughest outdoor smoking restrictions starting Monday, banning smoking at beaches, parks, playgrounds, and bus stops.
Russia’s Culture Minister Olga Lyubimova arrived in North Korea on Saturday with a large delegation, calling cultural ties between Moscow and Pyongyang stronger than ever.
The U.S. Senate advanced President Donald Trump’s sweeping tax-cut and spending bill after Republicans resolved concerns over rural hospitals and state tax deductions.
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