Nike is set to implement price increases on a broad range of its footwear, apparel, and equipment as early as this week. This development comes as retailers prepare for the potential impact of tariffs on their profit margins, according to information obtained by Finance Newso.
According to a source familiar with the situation, prices for adult apparel and equipment will rise between $2 and $10. Footwear currently priced between $100 and $150 is expected to see a $5 increase, while sneakers priced above $150 will be subject to a $10 hike.
The new pricing structure will take effect by June 1, though consumers may start noticing the changes on store shelves as soon as this week. Notably, the price increases will affect a substantial portion of Nike’s product lineup, although many items will retain their current pricing.
Children’s products and items priced below $100 will not see any increases, as the company aims to be sensitive to the financial pressures faced by families, particularly during the back-to-school shopping season.
Additionally, Nike’s popular Air Force 1 sneakers will maintain a price of $115, reflecting their status as a comfortable and accessible option for many consumers in the workplace.
While Jordan brand clothing and accessories will not face price hikes, there will be increases for Jordan sneakers, as per the source.
Nike released a statement indicating that the company regularly reviews its business operations and adjusts pricing as part of its seasonal planning, but did not explicitly link the decision to ongoing tariffs.
Retail price adjustments are routine; however, the footwear industry is experiencing significant challenges due to the recent tariffs implemented by President Trump. Currently, Nike produces about half of its footwear in China and Vietnam, with Chinese imports facing a new 30% tariff and those from Vietnam a 10% duty. In April, Trump temporarily reduced the tariff on Vietnamese goods from 46% for a 90-day period.
The tariffs are anticipated to affect Nike’s profit margins, prompting the company to adjust prices to mitigate potential losses, particularly as it navigates a more protracted turnaround process than expected. Prior to the imposition of tariffs, Nike’s profits were already under strain due to reliance on discounting strategies to facilitate product sales.
The price increases will apply to the Manufacturer’s Suggested Retail Price (MSRP) visible at Nike stores and on its website. The company has communicated the adjustments to its wholesale partners; however, the extent to which this will impact retailers like Dick’s Sporting Goods or Foot Locker remains unclear.
