Nike Maneuvers Around Tariff Challenges to Boost Market Position
Nike faces potential cost increases due to U.S. tariffs but plans to mitigate impact by reducing reliance on Chinese production, partnering with suppliers, and raising prices. The company's strategic focus on innovation and marketing around sports is expected to aid growth despite current challenges, particularly in the running market.
Nike is poised to face a $1 billion increase in costs due to U.S. tariffs on imports, the company announced on Thursday. To counteract this, it plans to reduce reliance on Chinese manufacturing and shift production to other countries by May 2026.
The sportswear giant intends to adjust its partnerships and raise prices to minimize consumer impact. Despite anticipated revenue decline, Nike's shares climbed 11% following better-than-expected revenue and profit forecasts driven by its strategic focus under CEO Elliott Hill.
Nike aims to regain market share by bolstering its running shoe lineup and enhancing sports-focused marketing efforts. China's market remains challenging, but executives remain optimistic about long-term growth linked to product innovation.
(With inputs from agencies.)
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