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2d ago

Nike Tops Q4 Estimates, Forecasts Further Revenue Decline

Despite beating Q4 earnings estimates, Nike contends with a forecast mid-single-digit revenue decline alongside tariffs set to add roughly $1 billion to its costs

A'ja Wilson of the Las Vegas Aces wears a pair of her Nike A'One Everlasting player exclusive signature shoes in the fourth quarter of a game against the Washington Mystics at Michelob ULTRA Arena on June 26, 2025 in Las Vegas, Nevada.
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Nike is getting walloped with tariffs, with the company forecasting a $1 billion hit.

Overview

  • Nike’s Q4 revenue fell 12% to $11.1 billion and EPS reached $0.14, topping consensus forecasts of $10.7 billion and $0.13
  • Management projects a mid-single-digit decline in Q1 revenue, slightly less severe than analysts’ expectations of a 7.3% drop CFO Matthew Friend said Trump’s 30% tariffs could add about $1 billion in costs, prompting plans to cut China’s manufacturing share to high single digits by May 2026
  • The Win Now turnaround strategy delivered its largest financial headwinds in Q4 but is expected to moderate moving forward
  • Nike has initiated phased US price increases this fall to help offset cost pressures while facing double-digit sales declines in North America and China