Nike Risk Report

🛡️ financial & liquidity

Financial challenges are significant for Nike, with substantial costs anticipated due to geopolitical impacts. Trump's tariffs are a pressing issue, potentially costing the company $1 billion. Nike's innovation and marketing strategies remain robust, but these efforts are hampered by external economic pressures.

• Nike anticipates a $1 billion cost from Trump's tariffs as of 🗓 2025-06-29.
• Financial outlooks are stressed by tariff impacts and potential shifts in consumer pricing as of 🗓 2025-06-27.
• Nike projects significant expenses due to tariffs, signaling operational cost adjustments as of 🗓 2025-06-28.

⚖️ legal & regulatory

Nike faces multiple legal challenges, from allegations of financial misconduct to intellectual property disputes. A significant class action lawsuit related to their NFT platform illustrates legal vulnerabilities, while regulatory compliance remains crucial amidst global trade constraints.

• Users of Nike's shuttered NFT platform RTFKT filed a class action lawsuit for $5 million as of 🗓 2025-04-29.
• Nike is embroiled in a lawsuit related to its NFT platform shutdown as of 🗓 2025-04-28.
• Ongoing legal proceedings continue from a sex discrimination lawsuit initially settled back in 🗓 2025-02-19.

👥 labor & workforce

Nike is experiencing notable challenges within its workforce, highlighted by layoffs and labor unrest globally. With significant reductions in employment figures, the organization is also addressing disputes over fair wages in various international markets.

• Nike laid off workers in its tech division in the face of operational restructuring as of 🗓 2025-05-20.
• Based in Türkiye, Nike workers initiated a strike over wage disputes and changes in operational policies as of 🗓 2025-03-11.
• Job cuts in Portland, Oregon, marked a significant drawdown in workforce, exceeding previous expectations as of 🗓 2024-10-23.

🏗️ operational & business continuity

Nike's operational adjustments are geared towards weathering increased tariffs and supply chain disruptions. Strategic shifts include price adjustments and marketing investments, essential to balancing profitability with external economic pressures.

• Nike plans a 'surgical price increase' to counteract tariff costs and sustain operations as of 🗓 2025-06-27.
• Nike reorganized its supply chain to alleviate the $1 billion tariff impact, enhancing resilience as of 🗓 2025-06-27.
• Marketing investments rose by 15% to bolster brand staying power amid shifting operational dynamics as of 🗓 2025-06-27.

📜 innovation & r&d

Nike continues to invest in innovation, focusing on enhancing athletic performance through technology and product design. These efforts seek to sustain competitive advantage and address emerging market demands, despite fiscal adversities.

• Nike introduced the S.T. Flare, a basketball shoe designed for the Chinese market, showcasing their focus on product innovation as of 🗓 2025-05-23.
• The Nike Structure 26 represents advancements in support technology, emphasizing comfort and performance for athletes, launched on 🗓 2025-05-22.