Nike announced plans to reduce its dependence on Chinese production to lessen the financial impact of US tariffs, expecting a minor revenue drop. With CEO Elliott Hill's focus on product innovation and marketing, Nike's shares rose 15% after its earnings report. The company aims to decrease imports from China from 16% to a high single-digit percentage by 2026, and executives suggested general price increases across the industry, anticipating minimal loss in market share due to these adjustments. Cost cuts and a strategic sourcing mix are key to coping with tariff challenges.
Nike is cutting reliance on Chinese production to mitigate US tariffs, forecasting a smaller-than-expected drop in revenue, boosting shares by 15%.
Nike aims to reduce imports from China from 16% to a high single-digit percentage by May 2026 as a response to US tariffs.
Despite the significant tariff impact, Nike plans product price increases but expects limited share loss in the US due to industry-wide adjustments.
CEO Elliott Hill plans to enhance product innovation and marketing, focusing on sports to navigate the challenges posed by the tariff situation.
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