Nike raises tariff related incremental cost estimate to $1.5B from $1.0B

CFO Friend says: “Since our last earnings call, new reciprocal tariff rates have been increased for certain countries. And so with the new rates in effect today , we now estimate the gross incremental cost to Nike (NKE) on an annualized basis to be approximately $1.5 billion, up from the $1 billion we shared 90 days ago . Given the magnitude and timing of the most recent rate increases , we now expect the net headwind in fiscal 26 to increase from approximately 75 basis points to 120 basis points to gross margin. We continue to evaluate and implement the actions I described last quarter to mitigate these new costs. We are monitoring developments closely, and I remain confident in our ability to leverage our strengths, our scale and the deep experience of our leadership team to navigate through this disruption.”