The import tariffs of US President Donald Trump meet the American sporting goods manufacturer Nike harder than previously expected. The group is now expecting a burden of $ 1.5 billion for the current financial year. Three months ago, Nike had expected additional costs of one billion dollars.
The tariffs imposed by the US President for the import of goods to the USA are striking through American companies because many products are manufactured in Asia. This is particularly common in the sporting goods industry. So far, it is unclear to the extent to which manufacturers and dealers will pass on the higher costs from the tariffs to US consumers.
Homemade crisis
Meanwhile, Nike is on the way out of a crisis in which the company had maneuvered itself. The group had put a lot on direct sales in recent years at the expense of retail. As a result, Nike Regalplatz brands, especially in the important US market, were able to lose competing brands in the shops – and suffered from sales.
Nike also focused on fashion articles and neglected the model series geared towards sports. Around a year ago, the former top manager Elliott Hill was brought back from retirement as a boss to pull the rudder around. Now Hill pointed out of current quarterly figures that the three running model rows of Vomero, Structure and Pegasus had been renewed and that the sales in this category have recently increased by more than one fifth.
Numbers better than expected
In the end of August, the first quarter of the current financial year rose NIKE turnover by one percent to $ 11.7 billion per year. Analysts had expected an average of eleven billion dollars. The bottom line was that the quarterly gain fell by $ 727 million.
