Nike expects $1.5B in tariff costs this year, CFO says

Core Insights - The company reported higher-than-anticipated tariff costs during its fiscal 2026 Q1 earnings call, leading to a revenue of $11.7 billion, which is a 1% increase year-over-year. However, gross margin decreased by 320 basis points to 42.2% due to increased product costs and higher discounts in stores [3][7]. Group 1: Financial Impact of Tariffs - Nike expects to incur $1.5 billion in tariff costs for the year, an increase from the previous estimate of $1 billion, attributed to new reciprocal tariff rates [7]. - Other companies, such as General Motors and Stellantis, have also reported significant financial impacts from tariffs, with GM citing a $1.1 billion cost in Q2 and a projected total impact of $4 billion to $5 billion by year-end, while Stellantis reported a net loss of approximately $2.7 billion for the first half of 2025 due to tariffs [4]. Group 2: Industry Context - The term "tariff" was mentioned in 361 earnings calls of S&P 500 companies from June 15 to September 12, reflecting a quarter-over-quarter decline of 21%, yet it remains the second-highest occurrence in the past decade [5].