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

Nike shares surged 13.3% on Friday as an encouraging forecast on the back of its turnaround effort and plans to reduce China production for U.S.-bound goods bolstered investor confidence.

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.

Nike said it would cut its reliance on production in China for the U.S. market to mitigate the impact from U.S. tariffs on imports, and forecast a smaller-than-expected drop in first-quarter revenue,

Nike investors finally have an answer from CEO Elliott Hill about how long its turnaround plan will take, boosting confidence that upside is ahead.