Core Insights - Nike Inc. is facing significant financial challenges due to new U.S. tariffs, which are expected to cost the company $1.5 billion annually, a 50% increase from previous estimates [2][3] - Despite these challenges, Nike is celebrating a successful partnership with Kim Kardashian's SKIMS, which has positively impacted its sportswear portfolio [4] Financial Performance - Nike reported first-quarter revenue of $11.72 billion, exceeding analyst expectations of $11 billion, and earnings of 49 cents per share, surpassing estimates of 27 cents [6] - The company anticipates a decline in revenue for the second quarter by low single digits and a significant drop in gross margins by 300 to 375 basis points due to tariffs [7] Strategic Developments - The collaboration with SKIMS debuted with 58 silhouettes and received a strong consumer response, aligning with CEO Elliott Hill's "Win Now" strategy [4] - The Running division experienced over 20% growth in the quarter, and North American business revenue increased by 4% [4] Market Challenges - Nike's business in Greater China declined by 10%, and direct-to-consumer digital sales fell by 12% as the company reduced promotions [5] - The overall recovery is expected to take time, with Hill indicating that the journey back to greatness has just begun [6] Stock Performance - Nike's stock closed at $69.73 per share, up 0.26% on Tuesday, but has declined 5.35% year-to-date and 21.77% over the past year [9]