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.
Iran is reviewing a U.S. response to Tehran's proposal to reopen the Strait of Hormuz within seven days, with Foreign Minister Abbas Araghchi s...
AnewZ has premiered its new documentary film Kontrapunkt in Berlin, exploring more than two centuries of shared German-Azerbaijani hist...
Central Asian countries have agreed on water withdrawal limits and reservoir operating plans for the 2026-2027 non-growing season, with inflows int...
Russia's health watchdog said on Tuesday that no cases of plague had been detected among anyone who had come into contact with a Siberian plague institute laboratory worker who died last week, and locals said their lives had barely been disrupted.
Russia struck Ukraine overnight in one of the biggest attacks of the conflict, killing at least 19 people, Kyiv's Foreign Ministry said on Wednesday. Around 70 missiles were fired at Ukraine during the attack, as well as drones, the Ministry said.
The Saudi-led coalition says it has carried out a series of military operations against Houthi targets in Yemen after attacks on two Saudi airports left three people dead and dozens injured.
Azerbaijan and the five Central Asian states have signed two key documents at the 8th Consultative Meeting of Heads of State in Turkmenbashi, formalising a broader framework for regional cooperation in transport, trade, energy, digitalisation and security.
An investigation into August Hanning, the former head of Germany’s Federal Intelligence Service (BND), has no connection to Azerbaijan, informed sources have told AnewZ.
Uzbekistan and Russia have a portfolio of more than 200 joint projects worth almost $6 billion, as the two countries continue to expand regional and business ties. The projects were discussed during the third meeting of the Council of Regions of Russia and Uzbekistan, held in Fergana, Uzbekistan.
In the marshlands of Malluba in southern Azerbaijan, Kamil Mammadov follows a routine that has been passed down through generations. His family has worked with medicinal leeches for centuries, harvesting and breeding a species known as Hirudo orientalis, or the Caucasian medicinal leech.
Baku is hosting the second Azerbaijan International Investment Forum (AIIF 2026) and it’s attracting more interest this year, Azerbaijan’s Deputy Prime Minister told AnewZ. “The agenda is very impressive. More guests, more interest,” he said.
Warren Buffett has stepped down as chairman of Berkshire Hathaway, marking the end of one of the most influential leadership tenures in corporate history and completing a succession process that has been years in the making.
Nigerian billionaire Aliko Dangote launched Africa's biggest-ever share sale on Monday, opening the oil refinery that has remade the country's fuel market to public ownership for the first time.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment