Latest news with #Nike-specific
Business Mayor
25-05-2025
- Business
- Business Mayor
Adidas, Puma expected to hike sportswear prices following Nike as US tariffs hit
LONDON: Adidas and Puma are likely to hike prices for running shoes and sportswear in the United States, following Nike's lead, analysts and investors said on Thursday, as U.S. tariffs on imports drive costs up for retailers. Nike on Wednesday said it would raise prices next week, charging up to $10 more for shoes currently costing more than $150, while keeping prices stable for products under $100. It is the biggest sportswear company by sales and market cap. 'That was the moment Adidas and Puma were waiting for,' said Robert Krankowski, sporting goods analyst at UBS. Both German sportswear brands recently said they would not be the first movers in raising prices, instead waiting to see what rivals do. 'We should probably expect a similar decision from both Adidas and Puma because … this is not Nike-specific, it is an industry issue. Everyone will be impacted by the tariffs,' Krankowski added. U.S. President Donald Trump has imposed a blanket 10% tariff on all imports, and hit China with a higher tariff of 30%. More worrying for sportswear brands, the key footwear and clothing manufacturing hub of Vietnam faces the threat of a steep 46% tariff returning in July. Nike described the announced price increases as part of its normal seasonal planning, without mentioning tariffs. Puma said on Thursday it is in talks with its U.S. partners but has not decided whether or how it would adjust prices. Adidas did not immediately reply to a request for comment on its pricing plans. 'Historically, when the leading brand adjusts its prices, competitors tend to follow suit shortly thereafter,' said Federico Borin, an analyst at Janus Henderson. How high other brands raise prices will depend on their assessments of U.S. shoppers' willingness to pay, which varies based on how in-demand their sneakers or running shoes are. Adidas, which has enjoyed a surge in sales thanks to trendy vintage shoes such as the $100 Samba and $120 Gazelle, could easily raise prices, said Simon Jaeger, portfolio manager at Flossbach von Storch in Cologne, Germany, which holds shares in Adidas and Nike. Nike's price increases are relatively modest, Jaeger added, but 'what concerns me more is that the U.S. consumer in general is not as strong as a couple of years ago.' U.S. consumer sentiment slumped further in May while one-year inflation expectations surged, according to the University of Michigan Surveys of Consumers on Friday. Given weaker demand, sportswear brands will have to carefully manage their inventories at retailers, Jaeger said, to avoid oversupplying and being forced to discount. Puma, whose sales in the U.S. have been slowing, may have less room to hike prices than Adidas, said UBS' Krankowski. Puma has said it aims to sell 4 million to 6 million pairs of its $100 Formula 1-inspired Speedcat sneaker this year but sales have been slower than expected, raising the question of whether it should hike the shoe's price. 'Puma doesn't have a massive first-mover advantage because the other brands are taking more momentum,' Krankowski said. Read More Prada not looking at M&A, CEO says More expensive brands are also adapting as Nike hikes prices. Running-focused On, whose adult sneakers sell for $130 and up, plans to increase prices in July on certain products in the U.S., saying this is part of its ambition to be the 'most premium' global sportswear brand and not a reaction to tariffs.
RTÉ News
23-05-2025
- Business
- RTÉ News
Adidas, Puma expected to hike prices after Nike as US tariffs hit
Adidas and Puma are likely to hike prices for running shoes and sportswear in the US, following Nike's lead, analysts and investors said today, as US tariffs on imports drive costs up for retailers. Nike earlier this week said it would raise prices next week, charging up to $10 more for shoes currently costing more than $150, while keeping prices stable for products under $100. It is the biggest sportswear company by sales and market cap. "That was the moment Adidas and Puma were waiting for," said Robert Krankowski, sporting goods analyst at UBS. Both German sportswear brands recently said they would not be the first movers in raising prices, instead waiting to see what rivals do. "We should probably expect a similar decision from both Adidas and Puma because this is not Nike-specific, it is an industry issue. Everyone will be impacted by the tariffs," Krankowski added. US President Donald Trump has imposed a blanket 10% tariff on all imports, and hit China with a higher tariff of 30%. More worrying for sportswear brands, the key footwear and clothing manufacturing hub of Vietnam faces the threat of a steep 46% tariff returning in July. Nike described the announced price increases as part of its normal seasonal planning, without mentioning tariffs. Puma yesterday said it is in talks with its US partners but has not decided whether or how it would adjust prices. Adidas did not immediately reply to a request for comment on its pricing plans. "Historically, when the leading brand adjusts its prices, competitors tend to follow suit shortly thereafter," said Federico Borin, an analyst at Janus Henderson. How high other brands raise prices will depend on their assessments of US shoppers' willingness to pay, which varies based on how in-demand their sneakers or running shoes are. Adidas, which has enjoyed a surge in sales thanks to trendy vintage shoes such as the $100 Samba and $120 Gazelle, could easily raise prices, said Simon Jaeger, portfolio manager at Flossbach von Storch in Cologne, Germany, which holds shares in Adidas and Nike. Nike's price increases are relatively modest, Jaeger added, but "what concerns me more is that the US consumer in general is not as strong as a couple of years ago." US consumer sentiment slumped further in May while one-year inflation expectations surged, according to the University of Michigan Surveys of Consumers on Friday. Given weaker demand, sportswear brands will have to carefully manage their inventories at retailers, Jaeger said, to avoid oversupplying and being forced to discount. Puma, whose sales in the U.S. have been slowing, may have less room to hike prices than Adidas, said UBS' Krankowski. Puma has said it aims to sell 4 million to 6 million pairs of its $100 Formula 1-inspired Speedcat runners this year but sales have been slower than expected, raising the question of whether it should hike the shoe's price. "Puma doesn't have a massive first-mover advantage because the other brands are taking more momentum," Krankowski said. More expensive brands are also adapting as Nike hikes prices. Running-focused On, whose adult runners sell for $130 and up, plans to increase prices in July on certain products in the US, saying this is part of its ambition to be the "most premium" global sportswear brand and not a reaction to tariffs.
The Star
23-05-2025
- Business
- The Star
Adidas, Puma expected to hike sportswear prices following Nike as US tariffs hit
LONDON: Adidas and Puma are likely to hike prices for running shoes and sportswear in the United States, following Nike's lead, analysts and investors said on Thursday, as U.S. tariffs on imports drive costs up for retailers. Nike on Wednesday said it would raise prices next week, charging up to $10 more for shoes currently costing more than $150, while keeping prices stable for products under $100. It is the biggest sportswear company by sales and market cap. "That was the moment Adidas and Puma were waiting for," said Robert Krankowski, sporting goods analyst at UBS. Both German sportswear brands recently said they would not be the first movers in raising prices, instead waiting to see what rivals do. "We should probably expect a similar decision from both Adidas and Puma because ... this is not Nike-specific, it is an industry issue. Everyone will be impacted by the tariffs," Krankowski added. U.S. President Donald Trump has imposed a blanket 10% tariff on all imports, and hit China with a higher tariff of 30%. More worrying for sportswear brands, the key footwear and clothing manufacturing hub of Vietnam faces the threat of a steep 46% tariff returning in July. Nike described the announced price increases as part of its normal seasonal planning, without mentioning tariffs. Puma said on Thursday it is in talks with its U.S. partners but has not decided whether or how it would adjust prices. Adidas did not immediately reply to a request for comment on its pricing plans. "Historically, when the leading brand adjusts its prices, competitors tend to follow suit shortly thereafter," said Federico Borin, an analyst at Janus Henderson. How high other brands raise prices will depend on their assessments of U.S. shoppers' willingness to pay, which varies based on how in-demand their sneakers or running shoes are. Adidas, which has enjoyed a surge in sales thanks to trendy vintage shoes such as the $100 Samba and $120 Gazelle, could easily raise prices, said Simon Jaeger, portfolio manager at Flossbach von Storch in Cologne, Germany, which holds shares in Adidas and Nike. Nike's price increases are relatively modest, Jaeger added, but "what concerns me more is that the U.S. consumer in general is not as strong as a couple of years ago." U.S. consumer sentiment slumped further in May while one-year inflation expectations surged, according to the University of Michigan Surveys of Consumers on Friday. Given weaker demand, sportswear brands will have to carefully manage their inventories at retailers, Jaeger said, to avoid oversupplying and being forced to discount. Puma, whose sales in the U.S. have been slowing, may have less room to hike prices than Adidas, said UBS' Krankowski. Puma has said it aims to sell 4 million to 6 million pairs of its $100 Formula 1-inspired Speedcat sneaker this year but sales have been slower than expected, raising the question of whether it should hike the shoe's price. "Puma doesn't have a massive first-mover advantage because the other brands are taking more momentum," Krankowski said. More expensive brands are also adapting as Nike hikes prices. Running-focused On, whose adult sneakers sell for $130 and up, plans to increase prices in July on certain products in the U.S., saying this is part of its ambition to be the "most premium" global sportswear brand and not a reaction to tariffs. - Reuters
Fashion Network
22-05-2025
- Business
- Fashion Network
Nike's price hike triggers similar moves from Adidas and Puma
Home › News › Retail Download Print Following Nike's lead, analysts and investors said that Adidas and Puma are expected to raise prices on running shoes and sportswear in the United States as U.S. import tariffs increase retailers' costs. Reuters Nike announced on Wednesday that it will raise prices starting next week, adding up to $10 on shoes currently priced above $150, while maintaining stable pricing on products under $100. The company remains the largest sportswear brand in terms of both sales and market capitalization. 'That was the moment Adidas and Puma were waiting for,' said Robert Krankowski, a sporting goods analyst at UBS. Both German brands had previously signaled their reluctance to initiate price hikes, opting instead to monitor competitor behavior in a volatile market.'We should probably expect a similar decision from both Adidas and Puma because this is not Nike-specific—it's an industry-wide issue. Everyone will be affected by these tariffs,' Krankowski added. President Donald Trump has imposed a blanket 10% tariff on all imports and a steeper 30% tariff on Chinese goods. Vietnam—a key manufacturing hub for sportswear—may also face a renewed 46% tariff as early as July, which could further pressure brands. Nike described its price adjustments as part of its regular seasonal planning and did not specifically mention stated on Thursday that it is in discussions with U.S. retail partners but has not finalized any pricing changes. Adidas did not respond to a request for comment.'Historically, when the leading brand adjusts its prices, competitors tend to follow suit shortly thereafter,' said Federico Borin, an analyst at Janus much brands raise prices will depend on their assessment of U.S. consumer tolerance—a factor shaped by brand strength and product which has seen strong demand for retro models like the $100 Samba and $120 Gazelle, is better positioned to implement increases, said Simon Jaeger, portfolio manager at Flossbach von Storch in Cologne, Germany, which holds shares in both Adidas and noted that Nike's hikes remain moderate but expressed concern over the broader U.S. retail climate: 'What concerns me more is that the U.S. consumer in general is not as strong as a couple of years ago.'According to the University of Michigan Surveys of Consumers, consumer sentiment declined further in May, while one-year inflation expectations weakening demand, sportswear companies will need to manage retailer inventories with caution to avoid oversupply and markdowns, Jaeger which has faced slowing U.S. sales, may have less room to maneuver, Krankowski brand aims to sell 4 million to 6 million pairs of its $100 Formula 1-inspired Speedcat sneakers this year, but underwhelming performance has cast doubt on its ability to support higher prices.'Puma doesn't have a major first-mover advantage right now, especially since other brands are capturing more momentum,' Krankowski brands are also adjusting strategies in response to Nike's move. Swiss brand On, which sells running shoes starting at $130, plans to raise prices on select U.S. products beginning in July. The company stated that this move aligns with its ambition to be the 'most premium' global sportswear label and is not directly tied to tariffs. © Thomson Reuters 2025 All rights reserved. Tags : Fashion Footwear Sports Retail
Fashion Network
22-05-2025
- Business
- Fashion Network
Nike's price hike triggers similar moves from Adidas and Puma
Both German brands had previously signaled their reluctance to initiate price hikes, opting instead to monitor competitor behavior in a volatile market. 'We should probably expect a similar decision from both Adidas and Puma because this is not Nike-specific—it's an industry-wide issue. Everyone will be affected by these tariffs,' Krankowski added. President Donald Trump has imposed a blanket 10% tariff on all imports and a steeper 30% tariff on Chinese goods. Vietnam—a key manufacturing hub for sportswear—may also face a renewed 46% tariff as early as July, which could further pressure brands. Nike described its price adjustments as part of its regular seasonal planning and did not specifically mention tariffs. Puma stated on Thursday that it is in discussions with U.S. retail partners but has not finalized any pricing changes. Adidas did not respond to a request for comment. 'Historically, when the leading brand adjusts its prices, competitors tend to follow suit shortly thereafter,' said Federico Borin, an analyst at Janus Henderson. How much brands raise prices will depend on their assessment of U.S. consumer tolerance—a factor shaped by brand strength and product demand. Adidas, which has seen strong demand for retro models like the $100 Samba and $120 Gazelle, is better positioned to implement increases, said Simon Jaeger, portfolio manager at Flossbach von Storch in Cologne, Germany, which holds shares in both Adidas and Nike. Jaeger noted that Nike's hikes remain moderate but expressed concern over the broader U.S. retail climate: 'What concerns me more is that the U.S. consumer in general is not as strong as a couple of years ago.' According to the University of Michigan Surveys of Consumers, consumer sentiment declined further in May, while one-year inflation expectations increased. Given weakening demand, sportswear companies will need to manage retailer inventories with caution to avoid oversupply and markdowns, Jaeger added. Puma, which has faced slowing U.S. sales, may have less room to maneuver, Krankowski said. The brand aims to sell 4 million to 6 million pairs of its $100 Formula 1-inspired Speedcat sneakers this year, but underwhelming performance has cast doubt on its ability to support higher prices. 'Puma doesn't have a major first-mover advantage right now, especially since other brands are capturing more momentum,' Krankowski said. Higher-end brands are also adjusting strategies in response to Nike's move. Swiss brand On, which sells running shoes starting at $130, plans to raise prices on select U.S. products beginning in July. The company stated that this move aligns with its ambition to be the 'most premium' global sportswear label and is not directly tied to tariffs.
