US Edition
Nike says tariffs will cost it $1 billion before price increases, supply chain shifts
- Nike Inc. disclosed during its recent fourth-quarter earnings call that tariffs imposed under President Trump will add around $1 billion to its costs this year and plans price hikes starting fall 2025.
- This cost increase results from Trump's tariff policies announced in April and earlier, which sparked retaliatory tariffs and trade tensions primarily with China, now partly eased by a recent US-China agreement.
- Nike reported fourth-quarter revenue of $11.1 billion, the lowest since 2022, while planning to shift some production away from China to reduce tariff exposure, with Chinese imports currently representing 16% of US footwear supply.
- Chief Financial Officer Matthew Friend explained the company will implement phased price increases, optimize sourcing, partner with suppliers and retailers, and evaluate cost cuts, aiming to offset tariff impacts over time.
- These developments imply ongoing price pressures on consumers, supply chain shifts in the footwear industry, and continued uncertainty amid evolving US trade policies, despite partial tariff suspensions and negotiated deals.
159 Articles
159 Articles
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Nike Will Raise Prices, Shift Production From China Amid Tariff Hits
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Sales and sales in decrease but better than the expectations of the market: the stock flies on the Stock Exchange (+15%). The group intends to decrease the production in China
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