Nike stock soars 15% as company forecasts smaller sales, profit drops while tariff costs near $1 billion
From Yahoo Finance: 2025-06-27 16:07:00
Nike’s stock surged after announcing profit and sales declines would narrow this quarter, with costs from tariffs nearing $1 billion. Gross margins fell 4.4% in Q4 and are expected to drop further. The company plans to reduce reliance on Chinese manufacturing and implement price increases in the US.
Shares rose 15.2% on Friday, reducing year-to-date losses to under 5%. Nike aims to mitigate tariff impacts, expecting a $1 billion cost increase. The company plans to cut reliance on China for US goods and implement price hikes in the fall.
Nike reported a 12% revenue decline in Q4, beating Wall Street forecasts. Adjusted earnings per share were lower than last year. CEO Elliott Hill expressed optimism for business improvement. Same-store sales at Nike-owned stores rose 2%.
Facing tariffs and consumer confidence challenges, Nike competes with rivals like On and Hoka. Stock is down 6% this year but rebounded from April lows. Innovations like Vomero 18 and collaborations with Kim Kardashian are part of Nike’s strategy to recover.