Nike said on Thursday that US-imposed commercial tariffs will generate an additional cost of approximately $ 1 billion in the 2026 fiscal year revenue before implementing price increases and adjustments in its supply chain.
The company pointed out that, despite the financial impact, it works to mitigate these effects over time, adjusting suppliers and raising prices.
Currently, about 16% of its production chain is in China, but the goal is to reduce this percentage for the high digit interval by the next summer of the northern hemisphere, seeking to diversify its sources of manufacture.
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Despite the difficulties, Nike presented quarterly results higher than market expectations, with revenue of US $ 11.10 billion and profit of US $ 211 million.
Still, sales fell about 12% over the same period of the previous year, reflecting the effects of a restructuring strategy that includes discounts and returning to wholesale sales model, impacting profit margins.
The company also faces a reduction in customer traffic in its physical stores, although data indicates signs of recent improvement.
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The company reinforced its commitment to stabilize business, even in the face of a challenging scenario, including high tariffs and strong competition in the sportswear market.
The CEO, Elliott Hill, said the most difficult phase of the recovery process is passing, and that the results are expected to improve in the next quarters.
High tariffs are expected to have an impact of up to 1 percentage point on the gross margin, especially in the first half.
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The supplier diversification strategy and the focus on expanding their presence in the female segment are priorities for Nike, which seeks to recover its market share against competitors such as Lululemon and Alo Yoga.
The company also works in partnership with Kim Kardashian’s underwear line, which was postponed to the end of the year, as well as betting on product innovation and expanding digital commerce.
Despite the obstacles, Nike’s actions reacted positively to the news, rising about 10% during the conference conference with investors.
