As it struggles with a steep drop in sales, an expensive organisational makeover, and a $1 billion impact from US tariffs, Nike has revealed an 86% collapse in quarterly profits.
As revenues dropped 12% to US $ 11.1 billion, the lowest since Q3 2022, the sportswear behemoth reported a net profit of US $ 211 million in its fiscal fourth quarter, down from US $ 1.5 billion the year before.
While North America and EMEA showed more promising indications of recovery, Greater China witnessed the biggest decline in sales.
According to Matthew Friend, chief financial officer, the outcomes showed the “largest financial impact” from the company’s ongoing Win Now reorganisation initiative. Additionally, he affirmed that in order to counteract the additional tariffs imposed by President Trump, the company would be enacting “surgical” pricing hikes in the US beginning this fall.
According to the brand, the present tariff system, which is a component of Trump’s “Liberation Day” trade policy, may increase its costs by about US $ 1 billion this year. Nike intends to lessen the impact by reducing its production from 16% to high single digits in China by May 2026 for footwear headed to the US.
