"Nike is cutting reliance on Chinese production to mitigate US tariffs, forecasting a smaller-than-expected drop in revenue, boosting shares by 15%."
"Nike aims to reduce imports from China from 16% to a high single-digit percentage by May 2026 as a response to US tariffs."
"Despite the significant tariff impact, Nike plans product price increases but expects limited share loss in the US due to industry-wide adjustments."
"CEO Elliott Hill plans to enhance product innovation and marketing, focusing on sports to navigate the challenges posed by the tariff situation."
Nike announced plans to reduce its dependence on Chinese production to lessen the financial impact of US tariffs, expecting a minor revenue drop. With CEO Elliott Hill's focus on product innovation and marketing, Nike's shares rose 15% after its earnings report. The company aims to decrease imports from China from 16% to a high single-digit percentage by 2026, and executives suggested general price increases across the industry, anticipating minimal loss in market share due to these adjustments. Cost cuts and a strategic sourcing mix are key to coping with tariff challenges.
Read at www.aljazeera.com
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