The Ratings Game
The sporting-apparel giant is one of only a few companies to include an estimate for how margins will trough due to tariffs on China and Mexico
Published: March 21, 2025 at 12:24 p.m. ET
Nike Inc.’s stock fell sharply Friday, to put it on track for a five-year low, as Wall Street grappled with the apparel giant’s warning that higher tariffs on imports from China and Mexico will eat into its profit margins in the coming quarter.
While many companies are taking more of a wait-and-see approach to tariff costs, Nike NKE said it expects gross margins to drop by 400 to 500 basis points in its fourth quarter, due partly to trade-policy factors. Wall Street analysts had expected a gross margin decline of about 360 basis points.
About the Author
