Nike Inc. reported a significant decline in its fiscal third quarter earnings, with net sales dropping by 9% to $11.27 billion and an EPS of $0.54. The company also forecasted a steeper-than-expected revenue drop in the fourth quarter, projecting a decline in the mid-teens range. This downturn is attributed to several factors, including tariffs imposed by the Trump administration on imports from China and Mexico, and a general weakening of consumer spending. Nike's footwear revenue reached a decade-low at $7.208 billion, marking a 12% decrease year-over-year. Sales in China fell by 17% and in North America by 4%. The company's Chief Financial Officer, Matt Friend, highlighted the challenges of clearing out old inventory, which is expected to impact gross margins by 400 to 500 basis points in the next quarter. The company's efforts to refocus on sports and restore relationships with retail partners are facing hurdles due to these economic pressures. FedEx Corp. also reported its quarterly earnings, missing estimates with an EPS of $4.51 and revenue of $22.2 billion. The company cut its full-year profit and revenue forecasts, citing ongoing economic uncertainty and weakness in the U.S. industrial economy. FedEx's shares fell 11% at the open, marking the biggest drop since September, as the company also pointed to the impact of Trump's tariffs on its business. The stock was downgraded to sell by Loop Capital. Both Nike and FedEx's performances reflect broader economic concerns, with investors reacting negatively to the companies' outlooks. Nike's shares dropped 8.1% to fall below $100 billion in market value, while FedEx's downgrade added to the market's unease about the health of the U.S. economy.