👟 NIKE FACES 1 BILLION USD IN TARIFF COSTS, PLANS TO RESTRUCTURE SUPPLY CHAIN, REDUCE PRODUCTION IN CHINA

– Nike stated that revenue and profit will slow down in the upcoming period

– Chief Financial Officer Matt Friend said: “With the new tariffs, we estimate additional costs of around 1 billion USD in fiscal year 2026”

– The company will “fully mitigate” that cost by adjusting the supply chain, working with factories and retail partners, and increasing product prices

– The share of the supply chain from China currently accounts for 16% and is expected to drop below 10% before next summer

– Gross margin for fiscal year 2026 is expected to decrease by 0.75%, primarily impacting the first half of the year