Nike stocks soared Friday, despite a 12% revenue slump in the fourth quarter. CEO Elliott Hill told analysts Thursday he expects a better fiscal year ahead, albeit one that begins with a tariff-fueled cost increase estimated at $1 billion.

Nike’s shares jumped at the opening bell Friday after the company said it’s shifting some production away from China. But it also warned that tariffs imposed by the Trump administration will cost it about $1 billion before it makes internal changes,

Nike warned on its post-earnings call that if President Donald Trump’s tariff policies were to remain at their current level, they could cost the company nearly $1 billion.