Nike sales continue to tumble as Trump tariffs take toll on costs

For the full year to May 31, 2025, Nike reported a 10% fall in revenue on a reported basis and a 9% decline on a currency-neutral basis to $46.3bn (£33.7bn).

Sales during the fourth quarter also fell 12% to $11.1bn (£8.08bn), while Nike Direct sales tumbled 14% and wholesale revenues were also down 9% during the quarter.

The sportswear giant’s revenue for the fourth quarter exceeded expectations despite being its lowest quarterly figures for more than three years.

In a call with analysts, Nike president and chief executive Elliott Hill outlined initiaitves to focus on developing product line for crucial sports in the industry and said: “When we focus on sport, we win.”

The retailer also estimated that its costs will increase by around $1bn (£727m) under new tariff rates.

Executives at Nike also said the business would cut its reliance on the production of goods in China in a bid to ease the impact of US trade policies moving forward.

To date, China represents 16% of the footwear Nike imports into the US, but this is expected to reduce to the “high single-digit range” by the end of fiscal 2026.

Despite the fall during the quarter and full year, Nike’s shares were up more than 10% as its revenue guidance for the upcoming quarter is slightly improved and it expects revenues to be down by mid to single digits.

Hill said there are “encouraging signs” in North America and EMEA and the business hailed “building momentum” in its wholesale partners including the likes of JD Sports and Dick’s Sporting Goods.

Hill added: “While our financial results are in-line with our expectations, they are not where we want them to be. Moving forward, we expect our business to improve as a result of the progress we’re making through our Win Now actions.

“As we enter a new fiscal year, we are turning the page and the next step is aligning our teams to lead with sport through what we are calling the sport offense. This will accelerate our Win Now actions to reposition our business for future growth.”

Nike executive vice president and chief financial officer Matthew Friend said: “The fourth quarter reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here.

“I am confident in our ability to navigate through this current dynamic and uncertain environment by focusing on what we can control and executing our Win Now actions.”