Nike raises prices across core categories amid CEO turnaround and rising tariffs

Nearly a year into Elliott Hill’s tenure as CEO, Nike has seen steady price increases across its core footwear, apparel, and equipment ranges, coinciding with rising tariffs on goods imported from Asia.

Analysis of nearly 3,300 SKUs by DataWeave covering online channels from September 2024 to September 2025 shows footwear prices up 17%, apparel up 14%, and equipment and protection items up 18%. A month-by-month review indicates modest increases in October 2024, particularly in team and league apparel, followed by a sharp jump in January 2025, with accessories and equipment rising over 10%, and footwear seeing an 11% increase. Price growth accelerated across multiple categories from February to September 2025.

Nike experienced its steepest sales decline since the pandemic in the second half of 2024. Hill returned as CEO in September 2024, with the company refocusing on its fundamentals. Price increases were part of the turnaround plan, including adjustments made in May 2025.

In its most recent quarter, Nike posted unexpected sales growth, indicating early success of the strategy, although it forecast weaker holiday shopping months. Hill described the recovery as gradual, emphasising that “it’s not linear” and that the goal is for “the entire portfolio to work together to drive revenue and profit for all investors.”

Nike’s 2026 fiscal year will see tariffs cost the company approximately US $ 1.5 billion, reducing its gross margin by 1.2 percentage points, up from the US $ 1 billion and 0.75 point impact projected in June. The company has mitigated some of the impact through frontloading imports, according to ImportGenius, with shipments from Indonesia (37.9%), Vietnam (25.7%), China (10.4%), India (6.8%), Pakistan (5.7%), Jordan (5.6%), and Israel (2.3%).

Matt Friend, Nike CFO, highlighted headwinds including higher wholesale discounts, increased product costs due to tariffs, and channel mix challenges. Former Walmart CEO Bill Simon noted that component price increases drive costs, but suggested that a 17% rise in retail prices likely reflects other factors beyond tariffs.

Under Hill, Nike has also reduced promotions, shifting its online business back to a full-price model once inventory is sold off. Friend indicated that Nike Direct will continue to face traffic challenges, and a return to growth is not expected in Fiscal 2026.

Overall, Nike’s strategy combines selective price increases, reduced promotions, and targeted product investment, aimed at sustaining profitability amid tariffs and evolving consumer demand.