Nike's stock fell 5.5% due to concerns about Trump tariffs impacting next quarter's revenue

From Yahoo Finance: 2025-03-21 09:34:00

Nike beat earnings expectations under new CEO Elliott Hill, but investors worry about Trump tariffs. Shares fell 5.5%, with revenue of $11.27B surpassing estimates. Q4 revenue expected to drop. CFO warned of impacts from tariffs, gross margins down. Competitors gaining market share, inflation fears rising. Nike diversifying manufacturing base. Analysts see potential for growth with focus on core sports offerings. Nike is making changes to its strategy by focusing on iconic brands like Jordan and Nike Dunks, making them more exclusive and reducing promotions on Nike Digital. They are also rebuilding partnerships with retailers like JD Sports, Dick’s Sporting Goods, and Foot Locker after a focus on direct-to-consumer led customers to other brands.

Read more: Nike stock tumbles as tariffs are expected to hit next quarter’s results