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