A Nike bag is displayed at the entrance to the Nike store at Siam Center mall on April 3, 2025 in Bangkok, Thailand. Lauren DeCicca/Getty Images

Nike on Tuesday reported a surprise rise in first-quarter revenue and beat profit expectations as the storied sportswear brand’s turnaround effort gained traction despite weakness in China and tariffs pressuring margins.

Nike (NKE) shares rose more than 3% on Wednesday after the company also managed to clear some of its bloated inventory and wholesale revenues returned to growth in a sign of early success for CEO Elliott Hill’s plan to get Nike back to its former glory.

Executives warned the recovery was still a way off.

Nike now expects tariffs to cost it about $1.5 billion this year, compared with the $1 billion expected earlier . The

See Full Page