Nike details further fallout from tariffs as it marks nearly one year under CEO Elliott Hill.

This story was first published by Digiday sibling Modern Retail

Nike yesterday revealed that it expects $1.5 billion in gross incremental costs, on an annualized basis, because of tariffs. That’s a 50% increase from Nike’s last estimate, provided in June, of $1 billion. Meanwhile, Nike’s gross margin for its first fiscal quarter of 2026 decreased 320 basis points, in part due to “increased product costs, including new tariffs, and channel mix headwinds,” EVP and CFO Matthew Friend said on a call with analysts.

Friend stated that Nike is revising its numbers because, since the company’s last earnings call, “new reciprocal tariff rates have been increased for certain countries.”

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