Nike expected to report poor Q4 results due to Trump's import tariffs, but innovation may help

From CNBC: 2025-06-26 12:00:00

Nike is expected to report poor quarterly results as global markets brace for the impact of U.S. President Donald Trump’s import tariffs. The company warned investors about the low point of its turnaround in the fiscal fourth quarter, worsened by a 30% tariff on goods imported from China. Nike’s efforts to offload inventory have been tough, with profits potentially falling further.

Despite challenges, Nike’s innovative styles are resonating with consumers, and price increases may offset tariff costs. Consumer sentiment has rebounded, benefiting Nike’s sales in April. However, a decline in U.S. retail sales in May poses a challenge. Analysts expect earnings per share of 13 cents and revenue of $10.72 billion for the fourth quarter.

Nike CEO Elliott Hill is focused on rebuilding wholesale partnerships after a decline in sales under the previous direct selling strategy. Monthly visits to Nike stores improved in May after a decline in April. Investors are keen on Nike’s guidance, turnaround timeline, product pipeline, and potential expense cuts. The company aims to attract more female shoppers and compete with athletic apparel rivals.



Read more at CNBC:: Nike (NKE) Q4 2025 earnings