Expect Nike to show revenue and margin hits this quarter, says SW Retail's Stacey Widlitz
Stacey Widlitz, SW Retail Advisors president, joins 'Power Lunch' to discuss Nike's quarterly earnings results.
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Yahoo
an hour ago
- Yahoo
Nike pledges to cut reliance on Chinese factories
Nike says US President Donald Trump's tariffs on key trading partners could add around $1bn (£730m) to its costs this year. Company executives also said the sportwear giant would cut its reliance on producing goods in China to ease the impact of US trade policies. Last month, Nike said it would raise prices on some trainers and clothing in the US from early June, weeks after rival Adidas warned it would have to hike the cost of goods due to tariffs. Separately, both the US and China say they have agreed on how to implement a trade agreement they reached earlier this month. It involves Beijing sending more rare earth metals to the US in return for the lifting of export restrictions. Shares in Nike jumped by more than 10% in extended trading after it forecast a smaller drop in first quarter revenue than many analysts had expected. The company's earnings for the last three months also topped estimates, despite being its worst quarterly figures for more than three years. Nike announced fourth-quarter revenue of $11.1bn - the lowest since the third quarter of 2022. Chief financial officer Matthew Friend said the firm would move some production from China, which was hit with the biggest tariff increases, to other countries in response to Trump's tariffs. China currently manufactures 16% of Nike footwear that ends up in the US. Mr Friend said that figure would be cut to a "high single-digit percentage range" by the end of May 2026. Trump announced sweeping "Liberation Day" tariffs on most goods from countries around the world on 2 April. Those plans included tariffs of 46% on goods from Vietnam and 32% on items from Indonesia, even bigger manufacturing hubs for Nike than China. Later that month, he suspended most of those tariffs to allow for talks with the affected countries, with one top adviser promising "90 deals in 90 days". The move dropped tariffs to 10%, instead of the far higher rates that goods from many trading partners faced. What tariffs has Trump announced and why? The White House is now facing growing questions about what the president is planning to do about tariffs, as the 90-day pause is due to expire on 9 July. In remarks at the White House on Thursday, Trump maintained that talks were going well, pointing to the agreement reached with China and saying there was another "coming up with India, maybe". But he also warned: "We're not going to make deals with everybody. "Some we're just going to send them a letter, say, 'Thank you very much. You're going to pay 25, 35, 45%.' That's the easy way to do it," he said. "My people don't want to do it that way. They want to do some of it, but they want to make more deals than I would do," he added. Treasury Secretary Scott Bessent has previously raised the possibility that Trump could extend the deadline, depending on how talks are going. On Thursday, White House spokesperson Karoline Leavitt said that the deadline was "not critical" and that Trump was prepared to present countries with "deals" that would set new tariff rates. The US and China announced an agreement earlier this month aimed at ensuring US supply of critical magnets and rare earths, after concerns about access had risked reigniting trade tensions between the two economic superpowers. At the White House on Thursday, Trump said he had "signed" a deal with China without giving further details. "The administration and China agreed to an additional understanding for a framework to implement the Geneva agreement," a White House official said later. Trade between the two sides was nearly shut down after Trump raised tariffs and China hit back in a barrage of tariffs in April that had nearly shut down trade between the two countries. The US and China subsequently agreed to reduce - but not eliminate - those tariffs. What tariffs has Trump announced and why?
Yahoo
an hour ago
- Yahoo
US–China deal fuels stock gains, Nike soars, Nvidia nears $4T
Yahoo Finance's John Hyland takes a closer look at some of the top stories of the trading day on Yahoo Finance's Market Minute. Renewed optimism about trade deals sends US stocks (^DJI, ^GSPC, ^IXIC) higher. Nike (NKE) stock soars after reporting earnings that signal successful turnaround efforts from CEO Elliott Hill. Nvidia's (NVDA) market capitalization could hit $4 trillion after the chipmaker's stock hits several record highs. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. It's time for Yahoo! Finance's Market Minute. US stocks are pushing higher today and looking to close out at all-time highs as the S&P 500 and Nasdaq trade in record territory. The stock rally gaining momentum after the US and China confirmed their trade deals and as economic data eased concerns about the impact of tariffs. Plus, Nike shares surging today as the company's turnaround gains traction. The retailer is forecasting a smaller than expected drop in revenue for the current quarter. Before today's gains, the stock had lost a third of its value over the past 12 months. And Nvidia shares pushing higher today after closing out at a new record high in Thursday's trade. The company is on a path to be valued at $4 trillion. It would be the first company to ever reach that valuation. And that's your Yahoo! Finance Market Minute. For more on what's trending on Yahoo! Finance, scan the QR code below to track the best and worst performing stocks of the trading session. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
an hour ago
- CNBC
The 'Halftime' Investment Committee weigh in on Nike shares surging and how to trade the move
Stephanie Link and Brian Belski debate how to trade Nike shares as the stock surges following their Fiscal Q4 report.
