Nike Shares Fall 7% Amid Tariff Concerns

Shares of NIKE, Inc. fell nearly 8% following the release of its Q3 2025 earnings, despite beating analysts' expectations with $11.3 billion in revenue and an EPS of 54 cents. The decline is attributed to investor concerns over the company's warning of a challenging Q4, exacerbated by President Trump's tariffs on imports, which could significantly affect profit margins. CFO Matthew Friend indicated that these tariffs impact about 24% of Nike's suppliers, potentially dropping gross margins by 400 to 500 basis points. Additionally, the company reported a 17% decrease in sales from China, driven by tariffs and reduced consumer demand. New CEO Elliott Hill emphasized the need to strengthen Nike’s focus on sports and manage inventory challenges while navigating the complex geopolitical landscape. Despite these challenges, the company is diversifying its manufacturing to reduce reliance on China, aiming for long-term stability.