Latest news with #SurveysofConsumers
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.
Business of Fashion
22-05-2025
- Business
- Business of Fashion
Adidas, Puma Expected to Hike Sportswear Prices Following Nike as US Tariffs Hit
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 US 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. US President Donald Trump has imposed a blanket 10 percent tariff on all imports, and hit China with a higher tariff of 30 percent. More worrying for sportswear brands, the key footwear and clothing manufacturing hub of Vietnam faces the threat of a steep 46 percent 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 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 US 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 US, saying this is part of its ambition to be the 'most premium' global sportswear brand and not a reaction to tariffs. By Helen Reid; Editor: Rod Nickel Learn more: Nike to Raise Prices by Next Week, to Return to Selling on Amazon, Media Reports Say The world's biggest sportswear brand is raising prices on several products next week and selling products on e-commerce giant Amazon.
Yahoo
22-05-2025
- Business
- Yahoo
Fox Valley residents show concerns over the local economy over the next year
Consumers in the Fox Valley weighed in on the local economic outlook recently, with nearly three-quarters expecting local economic conditions to worsen in the year ahead. The Appleton Post-Crescent surveyed readers to capture the consumer sentiment in the Fox Valley in mid-April. Forty-seven respondents completed the questionnaire, responding on local economic conditions to personal finances between April 17 and April 30, amid far-reaching trade policy changes with national implications. Their responses show a deep concern about rising prices of goods and services, a tight job market, and restrained household spending. Some respondents said local issues, like egg prices, the housing market, and layoffs, and federal economic policies, especially tariffs, are shaping their recent financial outlook. This fits national trends of a prevailing economic uncertainty across the country, as shown by the recent data from the University of Michigan's Consumer Sentiment Index, which collects data monthly on consumers' views about their personal finances, business conditions, and purchasing decisions across the country. The index of consumer sentiment dropped to 50.8 out of 100, down from 52.2 in April, in a preliminary reading for May. It marks the second-lowest level on the record since June 2022. "Tariffs were spontaneously mentioned by nearly three-quarters of consumers, up from almost 60% in April; uncertainty over trade policy continues to dominate consumers' thinking about the economy," said Joanne Hsu, director of the Surveys of Consumers, in the release. Despite this gloom, most respondents in the Fox Valley say they are prepared for a financial emergency, demonstrating resilience in the region. Here is a breakdown of what the Fox Valley respondents said: Most respondents rate the current local economy as 'good' (51%) or 'fair' (27.7%), while only 4.3% say the economic outlook is 'excellent' and 17% call it 'poor.' However, 72.3% of respondents expect the local economy to deteriorate over the next year, and only 23.4% expect improvement. It shows strong pessimism about the near future, even among those who view the current situation positively. The majority of respondents say there are 'plentiful' or 'adequate' job opportunities in the Fox Valley, but over a quarter (27.7%) see them as 'limited' and 6.4% as 'very few'. Respondents feel the labor market will be in decline. Only 19.2% expect more job opportunities in the next six months, and an equal share of 19.2% see the 'same level', while 62% expect fewer opportunities. Only 12.8% of respondents say it's a good time for a major purchase, including a home, car, or appliances, while a majority of 61.7% say 'no,' and a quarter are unsure. Just over 46% of respondents plan to decrease spending in the next six months and 27.7% will keep the spending at the same level, with another 27.7% saying they are expecting an increase. The majority of respondents fear inflation: 78.7% expect prices to increase, with 53.2% saying 'significantly' and 25.5% saying 'moderately.' By contrast, 14.9% see prices falling. Meanwhile, 59.6% of respondents are 'very concerned' about inflation and believe it impacts their purchasing decisions, while 8.5% are 'not at all' concerned. Just over 6% of respondents say their ability to save has improved over the past year, while 38.3% responded it has declined over the same time, and 55.3% say it's unchanged. Despite challenges, 70.2% say they could handle an unexpected $1,000 expense, while 19.1% say they could not, and 10.6% are unsure. Zhen Wang is a business reporter for The Post-Crescent. Reach her with story tips and feedback at zwang@ or 920-993-7117. This article originally appeared on Appleton Post-Crescent: Fox Valley survey shows economic concerns amid financial resilience
Irish Independent
20-05-2025
- Business
- Irish Independent
US consumer mood darkens as households prepare for price hikes
©Associated Press Today at 21:30 US consumer sentiment deteriorated further in May, with one-year inflation expectations soaring to levels last seen in late 1981 amid escalating fears over the economic impact of US president Donald Trump's trade policy. The University of Michigan's Surveys of Consumers on Friday showed a significant decline in morale among Republicans, suggesting that even Mr Trump's base was becoming concerned with the president's sweeping tariffs, which this week led retail giant Walmart to warn that it would start raising prices at the end of month because of increased costs from import duties.
Time of India
19-05-2025
- Business
- Time of India
Is USA economy slowly slipping into recession? Even Republicans are concerned over impact of Donald Trump's tariffs, claim surveys
US economy 's outlook doesn't look bright and there are probability that recession may set in coming times, experts have claimed. U.S. consumer sentiment deteriorated further in May, with one-year inflation expectations soaring to levels last seen in late 1981 amid escalating fears over the economic impact of President Donald Trump's trade policy. The economy contracted in the first quarter for the first time in three years amid a flood of imports as businesses tried to beat the higher costs associated with tariffs. Retail sales were almost flat in April, Reuters reported. "The consumer is plainly worried and reading between the lines it is not just price increases that are worrying, it is the fact that many goods may be impossible to find as the reduction in port activity means shortages could develop within months," said Christopher Rupkey, chief economist at FWDBONDS. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like War Thunder - Register now for free and play against over 75 Million real Players War Thunder Play Now Undo "The outlook continues to darken and one wonders how long this can continue before the economy actually slips over the edge into recession," Rupkey said. The University of Michigan's Surveys of Consumers on Friday showed a significant decline in morale among Republicans, suggesting that even Trump's base was becoming concerned with the president's sweeping tariffs, which this week led retail giant Walmart to warn that it would start raising prices at the end of month because of increased costs from import duties. Live Events It was the first time that sentiment dropped among Republicans since Trump's November 5 electoral victory. The continued slump in overall sentiment and jump in inflation expectations suggested a retrenchment in consumer spending was probably underway that could temper economists' expectations for a rebound in economic growth this quarter. FAQs Q1. Who is President of USA? A1. President of USA is Donald Trump. Q2. Which university conducted Surveys of Consumers? A2. The University of Michigan has conducted Surveys of Consumers.
