Nike is facing a significant $1 billion cost increase due to tariffs, prompting the company to implement a 'surgical price increase' strategy as outlined by CFO Matthew Friend. Despite a 12% drop in quarterly revenue to $11.1 billion, Nike's earnings beat forecasts, indicating resilience amid challenges. The company is also diversifying its sourcing and production locations to reduce reliance on China. CEO Elliott Hill, now focusing on sports, aims to reshape the brand's direction while keeping up with trends like the Snoafer.
Nike's CFO described the urgent need for a 'surgical price increase' strategy to offset a massive $1 billion cost spike due to tariffs affecting its supply chain.
Nike is focused on diversifying its sourcing and reallocating production away from China, with plans in place to drop its import share significantly by 2026.
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