Nike’s stock surged at the market open Friday after the company announced plans to move some production away from China. However, Nike also warned that tariffs imposed by the Trump administration are expected to cost the company around $1 billion before it can implement internal adjustments, which will include targeted price increases in the U.S. starting this fall.
Nike isn’t alone in signaling price hikes as the back-to-school shopping season approaches. Walmart also recently said customers will face higher prices this month and next due to increased costs from tariffs.
Nike is reducing its production in China—which currently accounts for about 16% of the footwear it imports to the U.S.—to a high-single-digit percentage by the end of fiscal 2026, as it shifts manufacturing to other locations, CFO Matthew Friend said during a Thursday conference call.
Late Thursday, President Donald Trump and Commerce Secretary Howard Lutnick announced a trade agreement with China but did not disclose details.
Earlier in April, Nike, along with Adidas, Under Armour, Puma, and 72 other companies, signed a letter urging Trump to exempt footwear from reciprocal tariffs, warning that these taxes would significantly impact family budgets at the cash register.
Friend explained that Nike will introduce “surgical” price hikes as part of its regular seasonal planning beginning this fall.
Concerns over rising prices due to tariffs have worried many families, especially those who already spend heavily on sports equipment.
On Thursday, Nike reported a quarterly profit of $211 million (14 cents per share) and revenue of $11.1 billion, both slightly exceeding Wall Street’s expectations.
Despite maintaining its status as a leading sportswear brand, Nike is facing a slowdown in consumer spending, with some customers showing signs of fatigue with the brand. Neil Saunders, Managing Director of GlobalData, noted that in markets like China, where growth has cooled, Nike faces similar challenges, compounded by some rising anti-U.S. brand sentiment, which is hard to counter.
Shares of Nike, headquartered in Beaverton, Oregon, jumped 15% at Friday’s opening bell.
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