Catenaa, Friday, June 27, 2025- Nike shares jumped by over 15% on Friday after the company said it’s shifting some production away from China and warned of $1 billion loss from US tariffs.
Nike is not the first retail company to warn of price hikes. Walmart said last month that its customers will start to see higher prices this month and next when the back-to-school shopping season goes into high gear.
Nike is shifting production to avert looming tariffs in China. Production in China represents about 16% of the footwear that Nike imports into the US.
Chief Financial Officer Matthew Friend said during a conference call late Thursday that production will be cut to the high-single-digit range by the end of fiscal 2026 as Nike shifts production elsewhere, he said.
President Donald Trump and his Commerce Secretary Howard Lutnick said late Thursday that the US and China have signed an agreement on trade, but provided no details.
Nike, Adidas, Under Armour, and Puma were among 76 companies that signed on to a letter in April addressed to Trump, asking for a footwear exemption from reciprocal tariffs. The letter warned that tariffs would “become a major impact at the cash register for every family.”
Nike said that it will begin to implement “surgical” price increases as part of its regular approach to seasonal planning, beginning this fall.
The potential for higher prices from Trump’s tariffs has raised alarms for families, notably those who already spend a good chunk of money on equipment needed to participate in sports.
Also on Thursday, Nike reported a quarterly profit of $211 million, or 14 cents per share. Revenue totalled $11.1 billion. Both edged out Wall Street projections.
