Nike Shares Surge Despite Tariff Woes and Sales Slump

Nike's stock soared more than 10% in after-hours trading despite forecasting a $1 billion hit from U.S. tariffs on Chinese imports and posting its steepest quarterly sales drop in three years. The athleticwear giant beat Wall Street's revenue and earnings forecasts for fiscal Q4 2025, even as sales fell 12% year-over-year to $11.1 billion and profits collapsed 86% amid aggressive inventory clearance discounts.

New CEO Elliott Hill is steering Nike's most ambitious restructuring in years, telling analysts "we expect our business results to improve" during Thursday's earnings call. The market responded enthusiastically to his turnaround roadmap, which includes reducing Chinese manufacturing dependence from 16% to single-digit percentages by May 2026 through production shifts to other regions.