Nike says US President Donald Trump's tariffs on key trading partners could add around $1bn (£730m) to its costs this year.

Company executives also said the the sportwear giant would cut its reliance on producing goods in China to ease the impact of US trade policies.

Last month, Nike said it would raise prices on some trainers and clothing in the US from early June, weeks after rival Adidas warned it would have to hike the cost of goods due to tariffs.

Nike's shares jumped by more than 10% in extended trading after the firm forecast a smaller drop in first quarter revenue than many analysts had expected.

The company's earnings for the last three months also topped estimates, despite being its worst quarterly figures for more than three years.

Nike announced fourth quarter revenue of $11.1bn - the lowest since the third quarter of 2022.

Chief financial officer Matthew Friend said Nike would move some production from China, which was hit with the biggest tariff increases, to other countries in response to Trump's tariffs.

China currently manufacturers 16% of Nike footwear that ends up in the US. Mr Friend said that figure would be cut to a "high single-digit percentage range" by the end of May 2026.

Trump announced sweeping "Liberation Day" tariffs on most goods from countries around the world on 2 April.

Later that month, he suspended most of those tariffs to allow for talks with the affected countries, with one top adviser promising "90 deals in 90 days".

The move dropped tariffs to 10%, instead of the far higher rates that goods from many trading partners faced.

Nike says Trump tariffs could raise its costs by $1bn