Core Insights - Nike reported better-than-expected first-quarter results, indicating progress in its "Win Now" turnaround campaign, with a 5% year-over-year increase in wholesale revenue and a 20% rise in running gear sales [2][3] - The company is facing challenges from rising tariff expenses, now expected to reach $1.5 billion annually, up from a previous estimate of $1 billion [5] - Nike's shares have seen a positive response from investors, rising approximately 5% and nearing an average analyst target of $83 [3] Financial Performance - The "Win Now" campaign is showing positive results, with significant increases in both wholesale revenue and running gear sales [2] - Robust spring wholesale orders and a strong response to collaborations, such as with Kim Kardashian, are contributing to the company's momentum [3] Tariff and Production Challenges - Nike's annual tariff expenses are projected to increase significantly due to evolving trade policies, impacting overall costs [5] - The company is reducing production in China, where tariffs are currently at 54%, and is working with partners to manage costs while also increasing prices [6] Market Position - Approximately 51% of Nike's footwear was produced in Vietnam, 28% in Indonesia, and 17% in China last fiscal year, highlighting the company's reliance on Asian manufacturing [6] - Despite the challenges, Nike's shares are regaining favor with investors after a difficult period [4][7]