NKE is falling as steep tariffs hit the company's China and Vietnam manufacturing bases
Nike Inc (NYSE:NKE) stock is under heavy pressure following President Donald Trump’s sweeping tariff announcement. The athletic apparel giant, which manufactures roughly half its footwear in China and a significant portion of its apparel in Vietnam, is now facing steep levies of 54% and 46%, respectively, on goods from those countries.
In response, NKE was last seen 11.3% lower at $57.62, as investors digest the long-term impact of rising supply chain costs on the company’s margins. The stock is set to snap a three-day win streak, extending its late-March post-earnings bear gap and hitting its lowest level since November 2017. Nike stock now carries a 23.5% year-to-date deficit.
Meanwhile, options traders are piling in following the news. More than 72,000 calls and 82,000 puts have changed hands -- 5 times the average intraday volume -- with fresh positions opening at the most popular contract, the April 55 put.