Nike shares surged 13.3% on positive forecast and plans to reduce China production

From Yahoo Finance: 2025-06-27 03:33:00

Nike shares surged 13.3% following a positive forecast and plans to reduce China production for U.S.-bound goods. Major brands, including Nike, are shifting away from Chinese factories due to political tensions and import tariffs. Nike plans to decrease imports from China to absorb anticipated tariff-related costs.

CEO Elliott Hill’s focus on innovation and marketing has boosted Nike’s running category with the success of the Vomero 18 shoes line. Analysts believe the worst may be over for Nike, attributing the positive change to a shift in leadership from John Donohoe to Nike veteran Hill. The company is also returning to a multi-channel sales approach.

Nike’s inventory clearing strategy and focus on athletes have put the company in a strong position for the first half of fiscal 2026. The delay in launching a product with Kim Kardashian’s brand Skims indicates a refocus on sports and athletes. Other sportswear retailers like Adidas, Puma, and JD Sports also saw stock increases.

Nike reported its worst sales drop in five years, falling 12% to $11.10 billion in the fourth quarter. Despite this, the company beat estimates and forecasted a mid-single-digit revenue drop for the first quarter. Nike shares are down 17.4% this year, with at least 11 brokerages raising their target price on the stock.



Read more at Yahoo Finance: Nike rallies on efforts to tackle tariff costs as turnaround takes shape