Latest news with #NikeInc
South China Morning Post
a day ago
- Business
- South China Morning Post
Trump's tariffs to squeeze Vietnam even if it lifts all duties on US goods: Lutnick
Washington will not reciprocate even if Hanoi removes all tariffs on American goods, according to US Secretary of Commerce Howard Lutnick, as he said Vietnam re-exports a significant volume of Chinese products to the US. Advertisement 'Absolutely not, absolutely not. That would be the silliest thing we could do,' Lutnick said when Republican Senator John Kennedy asked him whether the US will respond in kind if Vietnam decided to eliminate all tariffs and trade barriers against American imports, calling a potential agreement like that 'a terrible deal'. Lutnick added that Vietnam exported US$125 billion in goods to the US while only importing US$12.5 million worth of American products, without specifying a period. 'They buy US$90 billion from China, then they mark it up and send it to us. So it's just a pathway of China to us,' Lutnick said, though he suggested there might be some room for negotiations if Vietnam decides to stop re-exporting Chinese goods to the US. 05:19 How are Chinese citizens feeling the effects of the US-China tariff war? How are Chinese citizens feeling the effects of the US-China tariff war? A number of US brands, including Apple Inc. and Nike Inc., have manufacturing partners in Vietnam. Often these suppliers import materials and parts from China and conduct the final assembly in Vietnam. These American companies could be affected if US President Donald Trump eventually decides to slap stiff tariffs on the Asian nation.
Bloomberg
3 days ago
- Business
- Bloomberg
Nike CEO Finishes C-Suite Makeover With McDonald's Executive
Nike Inc. Chief Executive Officer Elliott Hill named a new head of communications, capping months of ousters, promotions and hirings as he tries to revive growth at the world's largest sporting brand. Since Hill came out of retirement and returned to Nike in October, he's changed most of the top positions under the CEO. And with the hiring of Michael Gonda from McDonald's Corp. as chief communications officer, Hill has finished revamping Nike's top ranks, according to a person with knowledge of the matter.
Bloomberg
29-05-2025
- Business
- Bloomberg
Nike's Longtime Design and Innovation Boss John Hoke to Retire
John Hoke, a longtime top design executive at Nike Inc., is retiring after more than three decades shaping new products at the world's largest sportswear company. Hoke is stepping down as Nike's chief innovation officer, according to an internal memo seen by Bloomberg News. In that role, he'd been charged with speeding up the pace of product development.
CNN
27-05-2025
- Business
- CNN
Snag these 10 Nike footwear deals to get a jump on tariff price hikes
Home to performance footwear made in collaboration with athletes and stylish sneakers worn by celebrities, Nike has been a leading player in the shoe industry for years. It's shaking up its business model by returning to Amazon after a 6-year hiatus and bringing its legions of apparel and footwear with it. However, that might mean price hikes to follow suit. According to our reporting, Nike will raise prices on footwear due to increasing costs from potential import tariffs. That means sneakers over $100 will jump in price by $10 starting on June 1. Ahead of time, I snuck over to Nike to find the best shoe deals on the brand's running and streetwear options right now. Nike Women's Air Max Excee My sister owns these 80s-inspired sneakers, and I may have snuck into her closet to steal them a time or two. Available in four on-sale designs, they offer a streamlined silhouette overlayed with subtle pops of colors and suede lines. If you prefer a neutral, go-with-anything shoe, these come in tans and browns too. Nike Women's Blazer Low '77 Sneakerheads can appreciate the discounted price brought to the famous Blazer shoe. It features a low-cut collar, making it easier to style than its high-cut counterpart. Its crisp leather fabric and clean lines bring a polished look to ensembles. Nike P-6000 A cross between a chunky sneaker and a sporty shoe, this makeover of the Pegasus shoe fits right in with 2000s-inspired trends. It's also made with cushioning foam to give you a bit more lift in your stance. Score it in men's and women's sizing for up to 39% off. Nike Women's Air Force 1 Shadow Hurry — because stock is already going quick for these cult-classic kicks. While Air Force 1s aren't expected to rise in price, we did already spot them for a low $68, giving you all the more reason to snag. It comes in an all-white sneaker option if you need a new staple. Nike Women's Pegasus Plus One of the brand's signature running shoes, the Pegasus Nike running shoe, is discounted in six colors. Enjoy its lightweight, responsive cushioning in each stride, complete with a stretchy knit upper — all the makings of top-tier comfortable shoes. Nike Zoom Vomero 5 Plated with silver accents, the Zoom Vomero 5 brings tons of visual texture to your outfits. It contrasts smooth suede with plastic overlays. All five colors are marked down by 24% in men's and women's sizing. Nike Men's Air Max 2017 Keep your feet cool with the ventilated mesh of these Air Max shoes. Pairs are as much as 39% off. It boasts a foam-molded arch to provide a more snug fit and a springy sole to help absorb shock as you run, walk or stand all day. Nike Men's Blazer Mid '77 Vintage Stick to the classic and snag these vintage Blazers for up to 44% off. What started as a basketball shoe has since evolved into an iconic streetwear silhouette. I love how it fuses old-school style with practical fabrics like a non-slip rubber outsole. Nike Men's Court Legacy Another penultimate streetwear shoe, the Court Legacy has made its mark in the Nike lineup for its Swoosh symbol and detailed stitching. It hails from tennis culture, making it an easy shoe to pair with your summer activities. Nike Air Zoom Spiridon Cage 2 Reminiscent of the rugged designs seen in popular outdoor shoes like Salomons, the Air Zoom Spiridon Cage 2 seems to be the shoe of today. Its edgy design comes in men's and women's sizing and a myriad of bold color pairings. Nike is offering steep discounts on footwear, which may be advantageous before the upcoming price increases on June 1, 2025. For example, the Nike Pegasus is nearly 40% off, reduced to $67, while the Nike Men's Blazer Mid '77s are priced at $58 after a 44% discount. A bonus: Nike members enjoy free shipping on orders over $50, making it a strategic time to purchase before price hikes take effect. CNN Underscored has been covering how tariffs may end up altering prices on consumer goods for the past several months, but this is one of the first companies who have actually announced it will be passing on the increased costs to customers. So, these deals are essential for getting your order in ahead of time. Our deals team has over a decade of combined commerce journalism experience. Rikka Altland, Jacqueline Saguin and Elena Matarazzo source the best deals of the day each morning to curate one-offs and retailer-specific roundups on the top products to shop. With years covering style under her belt, Saguin has a finger on the pulse of the latest trends and the fashion deals you can shop on them.
Business Insider
27-05-2025
- Business
- Business Insider
Nike (NKE) Returns to Amazon to Rekindle Old Fortunes
Nike Inc. (NKE), one of the world's leading footwear brands, has reported year-over-year sales declines for four consecutive quarters, prompting concerns about its long-term growth sustainability. In response, the company announced a two-pronged strategy on May 22: resuming direct sales through Amazon and implementing targeted price increases to enhance profit margins. Confident Investing Starts Here: While these initiatives may provide near-term support, I maintain a bearish outlook on Nike's stock, as I believe the current valuation does not fully reflect the key risks the company continues to face. Nike Goes Back to Amazon Although I am bearish on Nike, I believe the decision to sell directly on Amazon in the U.S. will help the footwear giant's sales in the short term. A survey conducted by AlixPartners and Footwear Distributors & Retailers of America in 2024 found that more than a third of consumers start their footwear search on Amazon. Nike's return to Amazon is likely to be completed before the end of this month. In line with the partnership terms, Amazon has notified third-party sellers that they will not be allowed to sell certain Nike products, starting on July 19. Over the past five years, many of Nike's direct competitors have maintained a strong presence on Amazon, while Nike's absence from the platform has contributed to market share losses. Looking ahead, Nike's renewed partnership with Amazon should improve its competitive positioning. Selling directly on Amazon also allows Nike greater control over its brand presentation, mitigating the negative impact of third-party sellers who have shaped the brand's image on the platform, often to its detriment. Moreover, leveraging Amazon's extensive U.S. reach—estimated at approximately 230 million active users—could help Nike strengthen its market presence and build a more resilient business profile. That said, investors should be mindful of potential risks associated with this strategy. Chief among them is margin pressure, as Amazon's seller fees could weigh on Nike's profitability. There is also a risk of channel cannibalization; a stronger presence on Amazon could divert traffic away from Nike's e-commerce platform. If that occurs, Nike may lose valuable direct-to-consumer data, which could hinder the effectiveness of its marketing and customer engagement efforts over the long term. Price Hikes May Not Boost Gross Margins As part of its strategy to reignite growth, Nike plans to implement selective price increases across certain product categories. According to multiple media sources, footwear priced above $150 will see a $10 increase, while those in the $100–$150 range will rise by $5. Adult apparel is also expected to see price adjustments ranging from $2 to $10, depending on the retail price. Notably, Nike will exempt several key categories from these hikes, including Air Force 1 sneakers, children's footwear, Michael Jordan-branded apparel, and all items priced under $100. This approach indicates that Nike strategically targets product segments with relatively low price elasticity, where stable sales volumes are likely to sustain revenue growth despite higher prices. The planned price increases appear justified in light of anticipated import cost pressures stemming from new tariffs. The degree to which these hikes will bolster gross margins depends largely on the company's ability to maintain stable sales volumes and the overall economic impact of the tariffs. Nike's gross margins have faced downward pressure in recent years, falling to 41.5% in Q3 FY2025 from 46% in FY2022. Key factors contributing to this decline include increased inventory write-downs, higher discounting to attract customers to Nike's direct-to-consumer channels, such as its website, and rising input costs. In theory, Nike's targeted price increases could enhance gross margins, provided sales volumes remain stable or decline only slightly. However, the implementation of new tariffs presents significant challenges to this strategy. According to UBS estimates, proposed tariffs on imports from Vietnam, which account for nearly half of Nike's footwear production, would necessitate substantially larger price hikes for the company to preserve its gross margin levels. Conversely, Morningstar analysts suggest that raising prices by more than 10% could severely impact sales volumes, making such increases difficult to sustain without compromising demand. Is Nike Stock a Buy or Sell? On Wall Street, NKE stock carries a Moderate Buy consensus rating based on 14 Buy, 15 Hold, and zero Sell ratings over the past three months. NKE's average stock price target of $76.75 implies approximately 28% upside potential over the next twelve months. Notably, several analysts who have recently expressed caution on Nike's stock appear encouraged by the company's decision to re-enter the Amazon marketplace. For example, Morgan Stanley analyst Alexandra Straton highlighted that direct sales on Amazon represent a clear positive, potentially adding $300 million to $500 million in incremental annual revenue. Similarly, HSBC analyst Erwan Rambourg views Nike's return to Amazon as a favorable catalyst, though he expressed concerns regarding the company's innovation pipeline. Analysts Sam Poser of Williams Trading and Brian Nagel of Oppenheimer also support this strategic move. Nike's Amazon Return Boosts Revenue as Valuation Concerns Persist While Nike's return to Amazon is a positive development, I remain cautious on the stock due to its elevated valuation, with a forward P/E exceeding 28. Although the company's five-year average forward P/E is around 31, this period included above-average growth, such as the 19% year-over-year revenue increase in Fiscal 2021, driven by post-pandemic recovery. Given the recent decline in revenue, I anticipate a potential valuation re-rating in the near term. Nike's decision to resume direct sales on Amazon in the U.S. is a strategic move likely to enhance short-term revenue. However, planned price increases may not translate into margin expansion, as the company faces rising import tariffs alongside the risk of reduced sales volumes. Given its current elevated valuation, Nike offers a limited margin of safety for investors.
