Nike Inc. shares experienced significant volatility on Friday, closing down 0.32% at $65.40 after an intraday swing of approximately 8%. The stock traded as low as $63.33 and reached a high of $68.49 during the session, with roughly 33.4 million shares changing hands. This movement followed a landmark U.S. Supreme Court decision that invalidated the bulk of former President Donald Trump's emergency tariffs, ruling the administration overstepped its authority under the 1977 International Emergency Economic Powers Act.
Market Reaction and New Tariff Timeline
The immediate market response was positive, with Nike shares initially surging 4.4% after the ruling announcement. However, those gains quickly reversed as traders digested the implications and awaited clarity on the administration's next steps. The White House subsequently announced that a new 10% global tariff will take effect at 12:01 a.m. Eastern time on Tuesday, February 24, 2026, creating fresh uncertainty for import-dependent companies.
Mike Dickson, head of research and quantitative strategies at Horizon Investments, noted, "Today is a removal of some uncertainty, and we're on to the next phase." Broader U.S. stock markets closed higher on Friday despite mixed economic data showing slowing growth alongside slightly higher inflation.
Financial Implications for Nike
Tariffs represent a substantial cost factor for Nike. According to Jefferies analysts, the company's fiscal 2026 outlook already incorporates an estimated 7.7% tariff impact, translating to approximately $1.5 billion in additional costs. The analysts suggested the recent court ruling could potentially ease some of this margin pressure, though the introduction of a new tariff regime complicates the picture.
A critical unresolved issue involves potential refunds for duties already paid. Michael Townsend, Schwab's managing director for legislative and regulatory affairs, highlighted this concern, stating, "It's a huge unresolved question" regarding whether companies will receive money back. He estimated resolving this could take "years." Schwab's Liz Ann Sonders pointed to research indicating "more than 90%" of tariff costs have been borne by U.S. importers—Nike's core customer base.
Sector Performance and Competitive Landscape
Apparel and footwear stocks displayed mixed performance amid the news. Lululemon Athletica closed up 2.4%, Under Armour jumped 5.2%, and VF Corporation gained 2.0% on Friday. This divergence underscores how company-specific positioning and supply chain exposures are driving individual stock movements within the sector rather than a uniform industry response.
Upcoming Catalysts for Investors
Nike has several immediate milestones on the calendar. The company declared a quarterly dividend of $0.41 per share, payable on April 1 to shareholders of record as of March 2. The primary focus, however, shifts to the upcoming earnings release scheduled for March 19, 2026, as confirmed by the Yahoo Finance earnings calendar.
The week beginning Monday, February 23, will be dominated by the market's reaction to the implementation of the new 10% global tariff on Tuesday. Investors will monitor whether the tariff holds as announced or undergoes modifications. Beyond this regulatory overhang, Nike shareholders will return their attention to fundamental business metrics: consumer demand trends, pricing discipline, and whether any tariff relief ultimately benefits margins or is competed away in the marketplace.
The Supreme Court's decision represents a significant shift in trade policy enforcement, but its net effect on Nike remains uncertain. While the ruling eliminates one set of tariffs, the immediate replacement with a new levy maintains cost pressures. The company's ability to navigate this evolving landscape, manage supply chain costs, and maintain brand strength will be closely scrutinized in the March earnings report and subsequent guidance.
