Nike shares rise despite the decrease in revenues and the costs of Trump’s tariff

Still, stocks Rise 15 % on Friday after a quarterly report is better than fear. The arrow’s profits were set, decreased by 86 % to 14 cents, overcoming Wall Street’s expectations by a penny. Revenue decreased by 12 % to $ 11.1 billion, above views of $ 10.7 billion.

CEO Elliot Hill He said On the call with analysts that the profits were “not reaching the Nike Standard”, but it is optimistic about the company’s transformation strategy.

Meanwhile, CFO MATT Friend estimated that the costs of customs tariffs would be about one billion dollars and analysts told Nike “will completely reduce this amount over the coming fiscal year by reducing American imports of China’s products, and implementing price increases starting from autumn, and reducing corporate costs.

The company said that the total margins declined in the fourth quarter, due primarily to more severe discounts, and NIKE expects that margins for the 2026 fiscal year decrease further, “with a greater impact in the first half.”

President Donald Trump and Minister of Commerce Howard Lootnick Declare On Thursday, the administration reached a commercial deal with China, although 30 % will remain definitions.

Currently, about 16 % of Nike shoe imports come from China, and this Friend expects this “decrease to high numbers by the end of 26 years 26, with the re -customization from China to other countries around the world.”

He added: “Despite the current high definitions of Chinese products imported to the United States, the ability of manufacturing and ability in China is still important to our global base.”

In a note after the profit report, Goldman Sachs wrote that they were “increasingly encouraged” by Nike Better-Rever-Jernt and Lipers’s Hill strategic. But the brand skeptics remain.

“Nike ended a difficult fiscal year in a somewhat incompatible note,” wrote Nile Sonders, the administrative director of Globaldata. “Although the giant of the sportswear has won expectations, it has put a frequent sales performance indicating that he is still falling into preference with consumers.”