Nike on Friday is forecasting a rebound from slow sales and profits in the last quarter and despite $1 billion added tariff costs on foreign goods of its sneakers and athletic gear.

Sales declined 12% in the quarter that ended May 31, the company’s fifth consecutive quarter of slipping sales. Nike hasn’t reported a sales drop larger than 12% since 2000, except for a quarter during COVID,

Nike is taking action to combat a $1 billion cost increase from tariffs, including “a surgical price increase” in the U.S. starting this fall.

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, which include “surgical” price increases in the U.S. starting this fall.