Sportswear giant Nike reported an 85 per cent decline in Q4, FY25 net profit to $211 million as against $1.5 billion in the same period last year. This decline was a result of the steep contraction in the brand’s sales, an expensive organizational overhaul, and a substantial $1 billion impact from US tariffs.
Of all regions, Greater China experienced the most significant sales decline while North America and the EMEA region showed more promising signs of recovery.
Mathew Friend, Chief Financial Officer, says, these results reflect the largest financial impact from the company's ongoing ‘Win Now’ reorganization initiative. Nike also plans to implement ‘surgical’ price increases in the US starting this fall to offset additional tariffs imposed by President Trump's administration, Friend affirms.
A part of what Trump terms ‘Liberation Day’ trade policy, the current tariff system could increase the company’s costs by approximately $1 billion this year. To mitigate this, Nike plans to reduce its footwear production in China destined for the US from 16 per cent to high single digits by May 2026.
