Nike is raising prices on some products, including sneakers and apparel that cost more than $100, an industry source confirmed to Front Office Sports.
“We regularly evaluate our business and make pricing adjustments as part of our seasonal planning,” a Nike spokesperson told FOS.
Nike is not raising prices on any kids products, Jordan apparel and accessories, Air Force 1 sneakers, or items under $100. Prices on footwear between $100 and $150 will see increases up to $5, and footwear above $150 will cost up to $10 more. Prices of apparel and equipment will also climb between $2 and $10. Price increases will come by June 1.
As companies spanning all industries reel from tariffs on U.S. imports imposed by the Trump Administration, a number have said they plan to pass on costs to consumers, including retail behemoth Walmart.
Adidas CEO Bjorn Gulden said on the earnings call following its first-quarter results last week that it is not planning any price increases yet, but would have to pass along increases if the currently paused tariffs end up going through. The German sportswear company reported 13% higher sales compared with a year ago, but said uncertainty around U.S. tariffs kept it from updating its full-year guidance. Last month Skechers withdrew its full-year guidance because of broad economic uncertainty stemming from tariff policies.
On also plans to raise prices on certain products it sells in the U.S., but said tariffs aren’t to blame. Rather, the Swiss sportswear company touted its strong premium positioning.
Over the last few months the erratic trade war has rattled markets and worried already vulnerable consumers.
The size of Nike’s price increases, though, may not have much of an impact. Price hikes will hit Nike’s most expensive products—the Air Max Dn8, for instance, which sells for $190. “The buyers of these products are not that price-sensitive, so I doubt that a few dollars will make much difference,” Morningstar analyst David Swarts tells FOS. “Nike’s management knows where it can raise prices without affecting share. Prices have been rising on the high end, and consumers have been willing to pay them.”
Typically, companies can respond to tariffs by passing on the increased cost to consumers, absorbing it, negotiating with their suppliers, or a combination of all three. When Trump imposed tariffs on imports from China during his first term, much of the retail industry responded by reworking supply chains and moving manufacturing operations from China to other countries. Vietnam was the biggest beneficiary of that shift.
According to its fiscal 2024 annual report, Nike manufactures most of its Nike brand footwear and apparel in Vietnam, Indonesia, China, and Cambodia.
On April 2, President Trump announced he would impose tariffs on countries the U.S. has steep trade imbalances with, but he instituted a 90-day pause a week later. There is, instead, a universal reciprocal tariff of 10% on imports from nearly all countries. This month Trump also paused the 145% tariff rate on Chinese imports, cutting it to 30%.
Nike is scheduled to report fiscal fourth-quarter earnings in June.
