Core Insights - Nike's costs are projected to increase by $1 billion this year if current tariffs imposed by the US government remain unchanged [1] - The company plans to reduce its footwear production in China from 16% to a "high single digit" percentage, reallocating supply to other countries [2] - Nike reported its lowest quarterly revenue in over three years at $11.1 billion, attributed to challenges in direct-to-consumer sales and reliance on fashion trends [5] Financial Performance - Nike's revenue for the latest quarter was $11.1 billion, marking the lowest figure since Q3 2022 [5] - The company is facing price increases for consumers starting in the autumn due to tariffs [5] Management Insights - Nike's CEO Elliott Hill indicated that the worst impacts of the trade wars have already occurred, suggesting that challenges may begin to ease [9]
Nike says Trump tariffs could cost it $1bn