Nike Repositions: Striding Away from Chinese Production
Nike plans to reduce dependency on Chinese production due to U.S. tariffs, aiming to cut Chinese imports to a single-digit percentage. The company expects a smaller drop in first-quarter revenue than predicted. Nike invests in innovation, focusing on running shoes to bounce back from a challenging market.
Nike has announced plans to lessen its dependence on Chinese manufacturing for U.S. markets in an effort to counter the impact of tariffs imposed by President Trump's administration. The move is part of a strategic shift that saw the brand's shares spike by 11% during after-hours trading.
Chief Financial Officer Matthew Friend revealed that China, currently responsible for 16% of Nike’s imports into the United States, will see its share decrease to a ‘high single-digit percentage range’ by May 2026. Nike plans to reallocate its production across various countries to mitigate the financial hit from tariffs.
Amidst a tariff tangle affecting consumer goods between the U.S. and China, Nike is proactively cutting costs while expecting to see revenue slightly outperform forecasts. Despite this challenge, the brand continues to invest in growth areas, particularly in running, as it launches innovative products to reclaim market share.
(With inputs from agencies.)
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