Nike posts lowest sales in years as it warns of $1bn tariff hit

Nike has seen fourth quarter revenues fall by 11% to $11.1bn (£8.08bn), its lowest sales figure since Q3 in 2022, as it warned that Trump’s tariffs could cost it an extra $1bn (£730m).

In its final quarter, the sportswear retailer also saw net income plunge 86% to $211m (£530.6m).

In addition, for the full year ended 31 May 2025, revenues fell by 10% to $46.3bn (£33.7bn).

The company now expects its own costs to rise around $1bn (£730m) as a result of the tariffs imposed by Donald Trump.

As a result of the tariffs, the company will also be reallocating supply from China. While the Chinese market makes up 16% of the footwear Nike imports into the US, the company expects to reduce that figure to the high single-digit range by the end of fiscal 2026.

Despite the negative results the company’s share price actually rallied more than 10% in after hours trading as the results came in better than analysts expected.

Matthew Friend, executive vice president and CFO, confirmed that the brand would be implementing “surgical” price rises to combat the tariffs.

Friend said: “The fourth quarter reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here. I am confident in our ability to navigate through this current dynamic and uncertain environment by focusing on what we can control and executing our Win Now actions.”

Elliott Hill, president and CEO, NIKE, Inc, added: “While our financial results are in-line with our expectations, they are not where we want them to be. Moving forward, we expect our business to improve as a result of the progress we’re making through our Win Now actions.

“As we enter a new fiscal year, we are turning the page and the next step is aligning our teams to lead with sport through what we are calling the sport offense. This will accelerate our Win Now actions to reposition our business for future growth.”