Nike could be a big beneficiary of Trump tariff refunds. Just how big it will be depends on whether customers also get some relief. Piper Sandler said the anticipated payback could be a major tailwind for Nike, whose stock is down more than 30% this year. The analysts estimate that a reimbursement would boost Nike’s earnings per share (EPS) and earnings before interest and taxes (EBIT) by 36%. “From a capital allocation standpoint, we expect the cash to be used for debt reduction, share buybacks, and investment spend, with no price reductions for consumers,” said analysts in a Sunday note to clients. The sneaker and apparel company has paid roughly $1 billion in tariffs since President Donald Trump imposed them in early 2025 under the International Emergency Economic Powers Act. However, in February, the Supreme Court ruled against the tariffs, opening the door for companies like Nike to recoup funds. According to estimates, as much as $175 billion worth of refunds could be sought from U.S. companies. On Friday, the president appealed the Supreme Court’s ruling. Further complicating matters: On Friday, consumers filed a class action lawsuit against Nike, arguing that the company should not be allowed to keep refunds on tariffs, which it passed on to consumers through higher prices. In the suit, consumers said Nike should not be allowed to keep the “significant” refunds it expects, according to a Reuters report . Despite the legal actions, Piper is viewing the refunds, likely to come in July and August, according to Customs and Border Patrol, as a positive catalyst for Nike. Nike could use all the help it can get. Shares plunged 15% after the company issued a disappointing forecast when it reported earnings in March , and are now down about 45% from their 52-week closing high of $79.24. NKE YTD mountain Nike YTD Last Friday, Wells Fargo analysts downgraded the stock to a hold rating due to concerns about Nike’s slow turnaround and cited a preference for apparel over footwear. The Club also downgraded the stock after its last earnings report. Jim Cramer has previously expressed frustration with Nike’s stalled turnaround under CEO Elliott Hill. But his confidence was bolstered after Hill and Apple CEO Tim Cook bought another $1 million in Nike shares each last month. Jim has decided to give the company until the fall to show signs of improvement. (Jim Cramer’s Charitable Trust is long NKE. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.