Latest news with #MatthewFriend
Yahoo
5 hours ago
- Business
- Yahoo
Nike says Trump tariffs could raise its costs by $1bn
Nike says US President Donald Trump's tariffs on key trading partners could add around $1bn (£730m) to it costs this year. Company executives also said the 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. Nike's shares jumped by more than 10% in extended trading after the firm 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 Nike 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 manufacturers 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. In April, 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 an 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. Commerce Secretary Howard Lutnick later told Bloomberg that the agreement with China formalised terms laid out in trade talks, which included a commitment from Beijing to deliver rare earths minerals used in everything from planes to wind turbines. 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 both 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 to critical magnets and rare earths, after concerns about access had risked re-igniting 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? 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
Malay Mail
5 hours ago
- Business
- Malay Mail
Nike to shift US-bound production out of China as Trump tariffs bite
BEAVERTON, June 27 — Nike said it would cut its reliance on production in China for the US market to mitigate the impact from US tariffs on imports, and forecast a smaller-than-expected drop in first-quarter revenue, sending its shares up 11 per cent in extended trading. US President Donald Trump's sweeping tariffs on imports from key trading partners could add around US$1 billion (RM4.2 billion) to Nike's costs, company executives said on a post-earnings call after the sportswear giant topped estimates for fourth-quarter results. China, subject to the biggest tariff increases imposed by Trump, accounts for about 16 per cent of the shoes Nike imports into the United States, Chief Financial Officer Matthew Friend said. But the company aims to cut the figure to a 'high single-digit percentage range' by the end of May 2026 as it reallocates China production to other countries. Consumer goods is one of the most affected areas by the tariff dispute between the world's two largest economies, but Nike's executives said they were focused on cutting the financial pain. Nike will 'evaluate' corporate cost reductions to deal with the tariff impact, Friend said. The company has already announced price increases for some products in the US 'The tariff impact is significant. However, I expect others in the sportswear industry will also raise prices, so Nike may not lose much share in the US,' said David Swartz, analyst at Morningstar Research. Running finds its footing CEO Elliott Hill's strategy to focus product innovation and marketing around sports is beginning to show some fruit with the running category returning to growth in the fourth quarter after several quarters of weakness. Having lost share in the fast-growing running market, Nike has invested heavily in running shoes such as Pegasus and Vomero, while scaling back production of sneakers such as the Air Force 1. 'Running has performed especially strongly for Nike,' said Citi analyst Monique Pollard, adding that new running shoes and sportswear products are expected to offset the declines in Nike's classic sneaker franchises at wholesale partner stores. Marketing spending was up 15 per cent year-on-year in the quarter. On Thursday, Nike hosted an event in which its sponsored athlete Faith Kipyegon attempted to run a mile in under four minutes. Paced by other star athletes in the glitzy and live-streamed from a Paris stadium, Kipyegon fell short of the goal but set a new unofficial record. Nike forecast first-quarter revenue to fall in the mid-single digits, slightly better than analysts' expectations of a 7.3 per cent drop, according to data compiled by LSEG. Its fourth-quarter sales fell 12 per cent to US$11.10 billion but still beat estimates of a 14.9 per cent drop to US$10.72 billion. China continued to be a pain point, with executives saying a turnaround in the country will take time as Nike contends with tougher economic conditions and competition. The company's inventory was flat year-over-year at US$7.5 billion as of May 31. — Reuters
BBC News
6 hours ago
- Business
- BBC News
Trump tariffs: Nike says US trade policies could cost it $1bn
Nike says US President Donald Trump's tariffs on key trading partners could add around $1bn (£730m) to it costs this executives also said the the sportwear giant would cut its reliance on producing goods in China to ease the impact of US trade 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 shares jumped by more than 10% in extended trading after the firm 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 announced fourth quarter revenue of $11.1bn - the lowest since the third quarter of financial officer Matthew Friend said Nike would move some production from China, which was hit with the biggest tariff increases, to other countries in response to Trump's currently manufacturers 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 announced sweeping "Liberation Day" tariffs on most goods from countries around the world on 2 April, 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 remarks at the White House on Thursday, Trump maintained that talks were going well, pointing to an 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 Secretary Howard Lutnick later told Bloomberg that the agreement with China formalised terms laid out in trade talks, which included a commitment from Beijing to deliver rare earths minerals used in everything from planes to wind turbines. 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 both 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 to critical magnets and rare earths, after concerns about access had risked re-igniting trade tensions between the two economic 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 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.
Japan Today
7 hours ago
- Business
- Japan Today
Nike profits sink but company says it is turning a corner
Nike says it is implementing a 'surgical' price increase in the United States to defray tariff costs Nike reported sharply lower quarterly profits Thursday, 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 Thursday's 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 nine 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. The comments elaborated on Nike's May 21 announcement of the price increase due to tariffs. The biggest hit to earnings from tariffs will be in the upcoming quarter, the first of Nike's fiscal 2026, Friend said. "We're confident in our ability to fully mitigate these over time," he said. Chief Executive Elliott Hill said recent collaborations with wholesalers Dick's Sporting Goods and JD Sports had resulted in improved sales. "Momentum and confidence are building in North America and EMEA (Europe Middle East Africa)," said Hill, who described progress in some other countries as slower. "China will take longer," he said. Shares of Nike rose 4.7 percent in after-hours trading. © 2025 AFP
Business Times
8 hours ago
- Business
- Business Times
Nike profits sink but company says it is turning a corner
[NEW YORK] Nike reported sharply lower quarterly profits on Thursday, but signalled it was past the worst stage of a corporate retooling as it implements 'surgical' US price increases to defray tariff costs. The Oregon-based sportswear company, beset with oversupply of merchandise that fell flat with consumers, reported profits of US$211 million in its fiscal fourth quarter, down 86 per cent from the year-ago period. Revenues fell 12 per cent to US$11.1 billion, with the steepest declines in Nike's Greater China region. The company had previously telegraphed that Thursday's results would be poor as it implements the 'Win Now' initiative to revamp the organisation, 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 US$1 billion in costs from the US tariffs in place right now. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The company aims to lower its share of footwear imported from China to the United States to nine 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. The comments elaborated on Nike's May 21 announcement of the price increase due to tariffs. The biggest hit to earnings from tariffs will be in the upcoming quarter, the first of Nike's fiscal 2026, Friend said. 'We're confident in our ability to fully mitigate these over time,' he said. Chief executive Elliott Hill said recent collaborations with wholesalers Dick's Sporting Goods and JD Sports had resulted in improved sales. 'Momentum and confidence are building in North America and EMEA (Europe Middle East Africa),' said Hill, who described progress in some other countries as slower. 'China will take longer,' he said. Shares of Nike rose 4.7 per cent in after-hours trading. AFP
