Nike (NKE) to Raise Prices on Sneakers and Athletic Wear This Week

Nike (NKE) says it plans to raise prices on a wide range of footwear, athletic wear, and equipment as soon as this week as the sneaker giant grapples with the impact of tariffs.

Prices for Nike apparel and equipment for adults will increase by $2 to $10, while footwear priced between $100 and $150 will see a price hike of $5. Sneakers that sell for more than $150 will see a $10 increase, according to media reports.

The price increases on Nike products will go into effect by June 1, but could be seen on store shelves as soon as this week. The increases cover a large portion of Nike’s products, including its signature running shoes, although some items will remain at their current price level.

No Price Hikes on Kids’ Products

Nike is reserving the price increases for adult footwear, athletic wear, and equipment. The prices charged on children’s products will not increase, nor will items priced under $100. The company does not want to risk alienating families or face a consumer backlash among cash-strapped parents, especially during back to school shopping season later in the summer.

Additionally, Nike’s popular Air Force 1 sneaker will remain priced at $115. Michael Jordan branded apparel and accessories won’t see any price increases, but Jordan sneakers will, according to the company. In a written statement, Nike said of the price hikes, “we regularly evaluate our business and make pricing adjustments as part of our seasonal planning.”

Currently, Nike manufacturers about half of its footwear in China and Vietnam, which Trump has hit with steep import duties. Chinese goods face a 30% tariff, while imports from Vietnam are currently subject to a 10% duty. Tariffs are expected to hit Nike’s profit margin in coming quarters, and the company can offset that impact through price increases. NKE stock has declined 20% this year.

Is NKE Stock a Buy?

Nike stock has a consensus Moderate Buy rating among 29 Wall Street analysts. That rating is based on 14 Buy and 15 Hold recommendations assigned in the last three months. The average NKE price target of $77.17 implies 28.66% upside from current levels.

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