Nike Hikes Prices for Its Apparel and Footwear

Summary

• Nike is raising prices (footwear up 17%, apparel up 14%) as part of CEO Elliott Hill’s turnaround strategy
• The price hikes are driven by an estimated $1.5 billion USD in annual tariff costs that reduce the company’s gross margin.
• The strategic goal is to use pricing power and reduce discounting to achieve sustainable long-term profitability

Nike is aggressively employing its pricing power across all core categories as part of CEO Elliott Hill‘s comprehensive turnaround strategy, which nears its one-year mark. Data indicates that online footwear prices increased by 17% over the past year, with apparel rising by 14%, a clear sign that the brand is prioritizing full-price sales to reverse a period of heavy discounting and slumping sales.

A major factor driving these increases is the external pressure from international tariffs. Nike now expects these new trade duties to cost the company a staggering $1.5 billion USD this fiscal year, a significant jump from previous estimates, which will reduce its gross margin by over a percentage point. While the company moved to frontload imports earlier in 2025 to mitigate some of the damage, the impact is unavoidable as a majority of production remains tied to Asian countries.

The strategy, however, shows early signs of success. Nike’s wholesale revenue and running gear sales have seen positive growth, indicating that Hill’s focus on reclaiming wholesale channels and prioritizing performance innovation is working. The company is being selective, raising prices where its brand power is strongest while avoiding the mass discounting that plagued it in 2024. This calculated approach is aimed at ensuring long-term profitability and sustainable growth.