Nike will raise prices on a wide range of products as soon as this week
Nike will raise prices on a wide range of footwear, apparel and equipment as soon as this week as the retail industry braces for tariffs to hit its profits, CNBC has learned.
Prices for Nike apparel and equipment for adults will increase between $2 and $10, a person familiar with the matter said. Footwear priced between $100 and $150 will see a hike of $5, while sneakers priced above $150 will see a $10 increase, the person said.
The price hikes will be in effect by June 1, but could be seen on shelves as soon as this week, the person said. The increases cover a large portion of Nike's assortment, but many products will remain the same price.
The prices of children's products will not increase, nor will items priced under $100, according to the person. The company is trying to be cognizant of the financial challenges families are facing and doesn't want parents to see higher prices when shopping for their children during the back to school season.
Further, Nike's Air Force 1 shoe will remain $115, the person said.
"It's a shoe that people in the workplace wear," the person said. "It's comfortable, accessible."
Jordan brand apparel and accessories also won't see increases, but Jordan sneakers will.
Nike said in a statement that "e regularly evaluate our business and make pricing adjustments as part of our seasonal planning." The company did not say the decision was related to tariffs.
While it is common for retailers to regularly adjust their pricing structure, the footwear industry has been particularly hard hit by President Donald Trump's new tariffs.
Currently, Nike manufacturers about half of its footwear in China and Vietnam, which Trump has hit with his new levies. Chinese goods face a new 30% tariff, while imports from Vietnam are currently subject to a 10% duty. Trump cut the tariff rate on Vietnamese goods from 46% for 90 days in early April.
Tariffs are expected to hit Nike's profit margin and it can offset the effect through price increases, especially as the sneaker giant works through a turnaround that's taking longer than expected. Nike's profits were already under pressure before tariffs took effect because it has needed to rely on discounting to move product.
The price hikes will be the MSRP rate that consumers see at Nike stores and on its website. It has sent a note out to wholesale partners about the price increases, but how they'll show up at places like Dick's Sporting Goods and Foot Locker isn't immediately clear.
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