Nike has announced a shift of its production capacity to Southeast Asia, a move that is beneficial for Taiwanese manufacturers and has driven up related stock prices. In the latest quarterly report released on the 26th, Nike reported a decline in revenue for the period from March to May 2025, though the performance exceeded expectations and indicated that operations have passed their lowest point. This triggered a post-market surge of 11% in share prices.

The company reported revenue of $11.097 billion for the quarter, an 11% year-on-year decline. With the shift of production, Taiwanese firms such as Feng Tai (9910), Bao Cheng (9904), and Zhi Qiang-KY (6768) saw significant stock price increases, with Feng Tai reaching a maximum price of 125.5 TWD.

Looking forward, Nike expects a decrease in gross margin this season due to tariff impacts but believes that operations will stabilize in the second half of the fiscal year 2026. Additionally, Nike plans to adjust product pricing and shift some of its production from China to countries like Vietnam, Indonesia, and India, aiming to reduce the share of Chinese manufacturing to single digits by mid-2026, which also presents opportunities for Taiwanese shoe manufacturers.