Nearing the one-year mark in new Nike CEO Elliott Hill’s turnaround plan, and at a time of rising tariffs on retail items made in Asia, the costs on merchandise throughout core Nike attire and footwear classes haven been rising.
Throughout practically 3,300 SKUs (inventory retaining items) analyzed by DataWeave from on-line channels within the interval from September 2024 to September 2025, footwear costs rose 17%, attire rose 14%, and tools and safety costs rose 18%.
A month-by-month evaluation exhibits a reasonable worth improve throughout all classes in October 2024, and workforce/league attire leaping essentially the most, however since then worth will increase on this class have been at a slower tempo. The massive transfer up in costs started in January 2025, when costs for the equipment and tools/safety classes elevated by over 10%, adopted by footwear with double-digit worth will increase (11%). From February to September 2025, costs quickly elevated throughout many merchandise.
“This regular upward motion exhibits Nike is leaning on pricing energy in its core efficiency classes, at the same time as exterior pressures similar to tariffs and channel shifts compress margins,” mentioned Karthik Bettadapura, co-founder & CEO, of DataWeave. “The extra modest 9 % elevate in workforce and league attire signifies customers on this section are extra worth delicate than in others,” Bettadapura mentioned.
The pricing information suggests Nike is being selective with its worth will increase, defending its strongest merchandise whereas testing the place greater costs can maintain with out dropping demand, in line with DataWeave.
“In apply, Nike’s pricing structure displays a focused method, reinforcing model worth in efficiency whereas utilizing choose promotions to take care of accessibility,” Bettadapura mentioned. “In the event that they maintain this self-discipline, Nike can stability profitability with shopper notion in a market the place buyers are more and more attuned to each worth and innovation.
Within the second half of 2024, Nike suffered a pointy downturn, its steepest gross sales decline for the reason that pandemic. In September of final 12 months, the corporate introduced Hill’s return as CEO. In June of final 12 months, the retailer had forecast a major decline in gross sales, main the the administration change and a plan to focus again on the basics that had lengthy outlined the enterprise and made it the market chief in sneakers and athletic attire.
Worth will increase have been a part of the plan, with many merchandise seeing bumps in Might, in line with earlier CNBC reporting.
In its most up-to-date quarter, Nike posted shock gross sales development, an indication the turnaround plan was working, but in addition forecast weak vacation procuring months, instructed a bumpy street to restoration.
“It is gonna take some time,” Hill mentioned in an unique interview with CNBC’s Sara Eisen on Monday. “It is not linear. However it’s a portfolio, and finally the aim is to have all the portfolio all working collectively to drive the income and the revenue that we hope to ship for all of our buyers.”
The corporate mentioned in its most up-to-date earnings that it anticipated tariffs to price it $1.5 billion and hit its gross margin by 1.2 proportion factors in its present fiscal 12 months 2026, a rise from the $1 billion and 0.75 proportion level gross margin affect it has forecast in June.
One of many methods Nike, together with different U.S. importers, navigated the tariffs is thru frontloading.
In keeping with ImportGenius, which tracked the imports of Nike from January 2025 to October, the corporate pulled ahead imports in three distinct intervals: February (3,173 TEUs) to April (4,427 TEUs) earlier than April 2 international tariffs have been first introduced by President Trump; Might (3,622 TEUs) via June (4,690), a periodduring which a brief tariff truce was introduced with China; and a 3rd import wave from July (3,624 TEUs) via September (4,203 TEUs).
Nike’s provide chain is diversified, however with the enlargement of the commerce struggle globally, the corporate is now paying layers of tariffs on its complete provide chain. In keeping with Panjiva, the port of origin of Nike import shipments for 2025 is damaged down amongst quite a lot of international locations: Indonesia (37.9%), Vietnam (25.7%), China (10.4%), India (6.8%), Pakistan (5.7%), Jordan (5.6%), and Israel (2.3%).
On the latest earnings name, chief monetary officer Matt Pal cited quite a lot of headwinds for gross margin, together with greater wholesale reductions, greater reductions in Nike manufacturing unit shops, elevated product prices together with new tariffs, and channel combine headwinds.
Invoice Simon, former CEO of Walmart tells CNBC there have actually been element worth will increase which might be placing upward strain on prices of products offered, the direct prices related to producing a very good, however the stage of worth will increase over the previous 12 months suggests different components at play as properly.
“Many corporations have been capable of mitigate substantial parts of the affect thus far,” mentioned Simon. “Others haven’t been in a position to try this for numerous causes.”
Simon added tariffs ought to be thought of as being utilized to the element components of merchandise, not on the ultimate retail worth.
“For instance, there isn’t any tariffs on revenue margin,” mentioned Simon. “A retail gross sales worth for a pair of Nike of $100 would come with 50% margin for the retailer (in addition to further margin for Nike). Additionally, delivery, logistics price, and so on., are usually not topic to tariffs,” he mentioned.
Whereas Simon careworn that he has no direct information of Nike technique so can solely analyze the pricing inside a broader retail context, he mentioned even when everything of the COGS have been hit, which means they have been unable to mitigate any of the affect, a 17% worth improve would appear “extreme.”
“If that is the case, there’s doubtless another motive for worth will increase of this magnitude,” he added.
Below Hill, Nike has been reducing down on promotions as a part of his turnaround plan, citing extreme on-line discounting. Final December, the corporate mentioned the web enterprise would return to “a full-price mannequin,” however it might be required to first dump stock. Pal mentioned on the newest earnings name that the corporate continues to take steps to reposition Nike Digital as a full worth enterprise, however natural site visitors continues to say no double digits. “With a enterprise within the prior 12 months that was extra focused on basic footwear franchises and sneaker launch, in addition to the next mixture of off-price gross sales, site visitors comps will stay beneath strain,” he mentioned. “We don’t anticipate Nike Direct to return to development for Fiscal 26,” he added.
Christina Fernández, senior analysis analyst at retail analysis agency Telsey Advisory Group, mentioned Nike has been rising costs on footwear and attire, however in line with its analysis, different retail manufacturers have raised costs much more, for instance, 50% of footwear maker On’s U.S. volumes noticed a $10 worth improve in July, in comparison with $5 will increase on comparable Nike merchandise. She added that the general pricing dynamics in retail stay fluid. Adidas, for instance, has not raised priced a lot but, in line with Fernandez, and common promotions stay a characteristic of this time interval.
Total, Telsey’s monitoring throughout a restricted pattern of 76 sporting items gadgets since mid-April exhibits attire costs have elevated 3%, footwear costs have elevated 1% and hardlines/tools costs have elevated 7%. However that may development greater. “We do anticipate extra worth will increase to move via the rest of this 12 months and within the first half of 2026,” she mentioned.