<h1>Athletic footwear company reports $211M quarterly profit, warns $1B tariff impact while shifting production from China</h1> The athletic footwear company reported quarterly profits of USD 211 million on USD 11.1 billion revenue, exceeding Wall Street projections. The company is shifting production away from China to avoid tariffs, reducing Chinese production from 16% to high-single-digits by fiscal 2026. However, the company warned tariffs will cost approximately USD 1 billion before internal adjustments take effect. The company plans surgical price increases beginning fall as part of seasonal planning. Shares jumped 15% following the announcement, though the company faces reduced consumer spending and brand perception challenges in key markets.