Nike profits sink but company says it is turning a corner
NEW YORK
Nike reported sharply lower quarterly profits, but signaled it was past the worst stage of a corporate retooling as it implements "surgical" U.S. price increases to defray tariff costs.
The Oregon-based sportswear company, beset with oversupply of merchandise that fell flat with consumers, reported profits of $211 million in its fiscal fourth quarter, down 86 percent from the year-ago period.
Revenues fell 12 percent to $11.1 billion, with the steepest declines in Nike's Greater China region.
The company had previously telegraphed that the results would be poor as it implements the "Win Now" initiative to revamp the organization, promote innovation and improve relations with wholesalers.
"The fourth quarter reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here," said Chief Financial Officer Matthew Friend.
Friend estimated a gross impact of $1 billion in costs from the U.S. tariffs in place right now.
The company aims to lower its share of footwear imported from China to the United States to 9 percent from the current 16 percent by the end of its fiscal 2026, Friend said.
Nike has also begun "a surgical price increase" in the United States, with "phased implementation" beginning in the fall, said Friend, who added that the company is working with retail and suppliers to minimize the impact on consumers.
