The U.S. Supreme Court ruled Trump cannot impose tariffs under the International Emergency Economic Powers Act. Trump’s workaround of implementing worldwide tariffs of 10%-15% was met with positivity by the market. This decision benefits major consumer-facing companies like Nike, Target, and Home Depot.

Nike, Target, and Home Depot saw modest stock increases after the ruling. Nike, in particular, has faced challenges connecting with growth investors. The company has only seen double-digit revenue growth once in the past decade, with declining margins and profitability.

Nike outsources production to Asia, with Vietnam as its largest manufacturing hub. The tariff war has impacted Nike’s profits, adding to its ongoing struggles. Target and Home Depot also face challenges beyond tariffs, with Target experiencing negative sales growth and Home Depot facing a sluggish housing market.

The Supreme Court’s decision could alleviate some of the challenges faced by Nike, Target, and Home Depot. Target has reduced its exposure to China in recent years, but a significant portion of its products are still sourced overseas. Home Depot relies heavily on imported products, with fresh financials expected soon.

Despite the positive news, all three stocks kept their gains in check. If revised tariffs lead to wider margins for these companies, further upticks could be on the horizon. Investors should consider the broader challenges each company faces beyond the recent tariff developments.

Read more at Yahoo Finance: Nike, Target, and Home Depot Stocks Just Got a Massive Win From the Supreme Court. Here’s What Investors Need to Know.