Nike is forecasting a rebound from slow sales and profits in the last quarter and despite $1 billion in added tariff costs on foreign goods of its sneakers and athletic gear. The company, headquartered in Beaverton,

Sales declined 12% in the quarter that ended May 31, the company’s fifth consecutive quarter of slipping sales. Nike hasn’t reported a sales drop larger than 12% since 2000, except for a quarter during COVID,

Nike reports a significant shift in production away from China, leading to a surge in stock price. However, the company warns of a $1 billion hit from tariffs, prompting concerns over higher prices. Discover the latest on Nike's strategy and its impact on consumers and the sportswear market.

The ailing US sportswear company reported falling revenues and income. Its fiscal guidance for the current quarter nonetheless gave investors a glimmer of hope, pushing the share price up around 10% in after-hours trading in the US.

Nike stocks soared Friday, despite a 12% revenue slump in the fourth quarter. CEO Elliott Hill told analysts Thursday he expects a better fiscal year ahead, albeit one that begins with a tariff-fueled cost increase estimated at $1 billion.

Nike is forecasting it will have to pay $1 billion in additional costs because of President Donald Trump’s tariffs, the activewear giant announced Thursday.

Nike has warned that tariffs introduced by President Donald Trump could raise its costs by $1 billion this year.

Company executives say the sportwear giant will cut its reliance on producing goods in China to ease the impact of US trade policies.