Higher Tariffs and Production Costs: Is NIKE Ready to Adapt?

Key Takeaways NKE faces $1.5B in annualized costs from higher U.S. tariffs, pressuring margins.Gross margin fell 300 bps to 40.6% in Q2 FY26 as EPS dropped 32% year over year.NIKE targets efficiency gains to offset tariffs, expecting Q3 margin down 175-225 bps.NIKE, Inc. (NKE) , like other industry players, remains exposed to the impact of rising tariffs and production costs. Management highlighted rising tariffs as a major structural headwind affecting the financial performance and cost structure. Higher t ...