Nike gets stomped as new Vietnam tariffs slam the company’s sneaker-making pipeline

Nike shares have lost nearly a third of their value over the past year.

4/3/25 7:33AM

Nike’s stock took a pounding Thursday, sliding over 11% in premarket trading, after President Donald Trump announced a steep 46% tariff on imports from Vietnam — Nike’s manufacturing backbone.

The sneaker giant has spent years shifting production to Vietnam to dodge US-China trade tensions, but the new tariffs could unravel that strategy. In fiscal 2024, half of all Nike footwear and 28% of its apparel came from Vietnamese factories, by far its biggest supplier. Trump also added tariffs to major sportswear manufacturers Cambodia (49%), Bangladesh (37%), and Indonesia (32%).

The timing couldn’t be worse. Nike shares have already been limping, falling 7% last month after the company warned of slowing sales and shrinking margins before tariffs even entered the picture. Consumer fatigue and weaker spending have also weighed on its performance in the US and China, two key markets.

Analysts aren’t too optimistic: last month, UBS slashed its price target on Nike from $73 to $66, saying the company hasn’t done enough to refresh its product lineup or marketing to turn the tide. The tariff shockwave also hit the broader sneaker market, with shares of rivals Adidas, Skechers, and Puma all sliding on the announcement.

Matt Phillips5h

ServiceNow slips despite beating Q4 earnings expectations

Cloud software giant ServiceNow delivered better-than-expected Q4 sales and earnings after the close of trading on Wednesday, though the shares slipped in after-hours trading.

The company reported:

Revenue of $3.57 billion, higher than the $3.53 billion analyst consensus estimate published by FactSet.
Adjusted earnings of $0.92 per share vs. the $0.88 analysts expected.
Subscription revenue of $3.47 billion vs. the $3.42 billion predicted.
Raised guidance for Q1 subscription revenues of between $3.65 billion and 3.655 billion, compared to the $3.58 billion FactSet consensus estimate.
Non-GAAP gross margins of 80.5%, a little light compared to the 81.1% FactSet consensus estimate.

Despite the better-than-expected results, the stock was down after-hours. ServiceNow also announced an expanded AI partnership with Anthropic, in which it will enmesh Anthropic’s Claude models more deeply into its products, alongside its financial results.

Such efforts to more closely associate itself with the AI boom have fizzled so far. ServiceNow shares have plunged 45% over the last year. And investors clearly remain skeptical after the Q4 numbers.

IBM beats Q4 earnings expectations, stock rises

Here’s what big blue reported.

Matt Phillips6h

Max Knoblauch6h

Southwest climbs on stronger-than-expected 2026 earnings guidance

Southwest Airlines posted its fourth-quarter and full-year earnings after the bell on Wednesday. Its shares climbed more than 4% in after-hours trading.

The airline, one of the big four US carriers, guided for revenue per seat mile to climb “at least 9.5%” in the first quarter, and costs per seat mile to rise 3.5%. It forecast a 1% to 2% boost in capacity for Q1.

For the full year ahead, Southwest said it expects adjusted earnings of $4 per share, ahead of Wall Street estimates of $3.22.

The carrier, which flew its last open-seating flight on Tuesday, posted Q4 adjusted earnings of $0.58 per share, slightly above the $0.57 per share expected by Wall Street analysts polled by FactSet. Southwest’s passenger revenue rose 7.6% to $6.79 billion in the fourth quarter, beating estimates of $6.77 billion.

Rani Molla

Tesla beats on EPS and revenue, says it has invested $2 billion into xAI

Tesla reported Full Self-Driving subscription numbers and a list of cities where it says Robotaxi is expanding in the first half of 2026.