Nike shoes are seen in the King of Prussia Mall as global market seats swept the trade and growth caused by US President Donald Trump's decision to impose import duties on dozens of countries (Prussia King, Pennsylvania, USA).
Rachel Wisniewski | Reuters
Nike CNBC has learned that the prices of various footwear, clothing and equipment will be raised this week in retail braces this week.
One person familiar with the matter said the price of Nike clothing and adult equipment will rise between $2 and $10. The person said footwear prices between $100 and $150 will reach $5, while sneakers priced above $150 will add $10.
The person said the price increase will take effect on June 1, but can be seen on the shelves this week. The addition covers a large portion of the Nike category, but many products will remain the same price.
The person said the price of children's products will not rise or be priced at $100. The company is trying to recognize the financial challenges facing families and does not want parents to see higher prices when shopping for their children while they return to school.
In addition, Nike's Air Force 1 shoe will remain at $115, the person said.
"It's the shoes you wear in the workplace," the person said. "It's comfortable and easy to use."
Jordan brand clothing and accessories won't increase either, but Jordan sneakers will.
"We regularly evaluate our business and make pricing adjustments, which is part of our seasonal plan," Nike said in a statement. The company did not say the decision was related to tariffs.
While it is common for retailers to regularly adjust their pricing structures, President Donald Trump’s new tariffs have been hit hard by the shoe industry in particular.
Currently, Nike manufacturers are about half of their footwear in China and Vietnam, and Trump's new taxes have hit his new tax. Chinese goods face a new 30% tariff, while imports from Vietnam are currently subject to a 10% duty. Trump lowered tariffs on Vietnamese goods from 46% in 90 days in early April.
Tariffs are expected to reach Nike's profit margins and can be offset by price increases, especially when the sneaker giant works longer than expected through turnover. Nike's profits are already under pressure before the tariffs come into effect because it needs to rely on discounts to move products.
The price increase will be the MSRP interest rate consumers see on Nike stores and their websites. It has sent notes to wholesale partners about price increases, but how they will appear in Dick's Sports Goods and Foot storage cabinet Not immediately clear.