Nike reported fiscal Q4 net income of $1.069 billion, up from $211 million a year earlier. Nearly all of the increase came from a refund of $986 million in tariffs the company had already paid.
The refund added $0.52 to diluted earnings per share, which came in at $0.72. Greater China revenue fell 12%.
How it works: The U.S. Supreme Court ruled that tariffs under the IEEPA were unauthorized. Nike said during Q4 that a refund was “probable” and booked the full $986 million.
Most of it is not yet cash. About $300 million had arrived by year-end. The remaining $686 million is still owed. Nike said the gain “largely offsets” tariffs it had expensed earlier in the year.
Where it landed: The company booked almost all of the benefit to one region. North America received $965 million, and Converse $21 million.
In China: Greater China revenue fell to $1.297 billion, down 12% or 17% on a currency-neutral basis. Regional operating profit fell 20%. CEO Elliott Hill said Nike has staffed a “Greater China Local Product creation team” to design and make products in-country. He also said sell-through “remains challenged” in sportswear and Jordan streetwear.
How peers handled it: Companies that collected IEEPA refunds have taken different paths.
Nike booked its refund to earnings. Total revenue fell 1% to $10.97 billion.
