Nike announced new pricing strategies to counter a $1 billion increase in tariffs expected in fiscal year 2026. CFO Matthew Friend described these tariffs as a significant financial challenge, leading the company to implement a "surgical price increase" starting in fall 2025, without specifying which products would see price hikes. Nike plans to lower its import dependency on China from 16% to the high single digits within a year. Despite a 10% drop in 2025 revenue, Nike beat market expectations, indicating potential for stabilization amid ongoing tariff pressures.
Nike is implementing a strategy to combat rising tariff costs that includes a phased price increase in the US, starting in the fall of 2025.
CFO Matthew Friend noted, 'These tariffs represent a new and meaningful cost headwind,' as they aim to mitigate a $1 billion impact on profitability.
As part of its response, Nike plans to decrease its dependence on China for production, which currently supplies 16% of US footwear imports.
Despite a 10% revenue drop in fiscal 2025, Nike managed to exceed Wall Street's expectations, setting a path to recover as it navigates tariff pressures.
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