Nike Is Raising The Price Of Several Notable Products
The retail industry is currently bracing for the impending tariffs associated with imported goods, and one popular company is set to increase prices on many notable items.
CNBC reports that Nike will raise prices on "a wide range of footwear, apparel and equipment," and that those price increases could be reflected as soon as this week.
Apparel and equipment for adults is expected to increase between $2 and $10, while sneakers will see an increase of either $5 or $10 depending on their original price point.
The price of children's items will not increase, and the same will be true for items that are already priced under $100.
CNBC's source says that the company wants to recoup lost profits, but that they don't want parents to get sticker shock when buying back-to-school clothes later in the summer.
The source used the Air Force 1 as an example, noting that it will retain its price of $115.
“It’s a shoe that people in the workplace wear,” the source said. “It’s comfortable, accessible.”
Nike did not mention tariffs directly in a statement announcing the impending price changings, saying only that "we regularly evaluate our business and make pricing adjustments as part of our seasonal planning.”
The company currently manufactures roughly half of its footwear in China and Vietnam, two countries that will be hit by some of the most strict tariffs.
China is set to face a 30% rate for imported goods to the United States, while Vietnam's rate is currently set at 10%.
The price changes will take effect at Nike's own retailers first, but the changes to MSRP will take time at retailers like Finish Line and Dick's Sporting Goods.
Nike was already dealing with a decrease in profits, relying on discounts to move merchandise over the last year. Shoppers have moved to the perceived higher-quality of athleisure brands like Lululemon, Alo, Vuori and more.
Rivals like Adidas and Under Armour challenge Nike in the footwear space as the company continues to rely on nostalgia with retro Jordan and Nike basketball releases.
We'll see how the tariffs and the impending price increases affect Nike's bottom line over the next few months.