Adidas and Puma are expected to increase their prices for running shoes and sportswear in the U.S., following Nike’s recent decision. Analysts and investors noted that tariffs on imports will impact retailers’ pricing strategies.
This past Wednesday, Nike announced it would be raising prices as early as next week, with increases of up to $10 or more for shoes priced at $150 and above, while keeping prices for products under $100 steady. Nike remains at the forefront of the industry in terms of sales and market capitalization.
“This was the signal Adidas and Puma had been anticipating,” remarked Robert Krankovsky, a sports goods analyst at UBS.
Interestingly, both Adidas and Puma previously stated they wouldn’t be the first to make these adjustments, choosing instead to monitor their competitors’ actions.
“It’s reasonable to expect similar moves from Adidas and Puma. This isn’t just about Nike; it’s an industry-wide issue. Tariffs affect everyone,” he added.
President Trump implemented a 10% tariff on imports, while also imposing a staggering 30% tariff on products from China. The situation is particularly concerning for sportswear brands regarding Vietnam’s major footwear and clothing manufacturing sectors, which are now facing a return of a 46% tariff threat come July.
Nike categorized its price hike as part of regular seasonal adjustments without mentioning tariffs. Meanwhile, Puma stated that discussions with its U.S. partners are ongoing, but no decisions have been made yet regarding their pricing approach. Adidas has not commented on its strategy either.
The way other brands approach price increases will largely depend on whether U.S. consumers are willing to pay more or not.
Adidas has seen good sales from trendy vintage styles, like the $100 Samba and the $120 Gazelle, which has provided them some leeway for price adjustments. However, Jaeger noted that Nike’s hikes are somewhat modest, expressing concern about the current strength of U.S. consumers compared to previous years.
A University of Michigan survey indicated that U.S. consumer sentiment stagnated in May amid rising inflation expectations.
With demand being relatively low, brands in the sportswear sector must carefully oversee retailer inventories to avoid oversaturation and unnecessary discounts, Jaeger suggested.
According to Krankowski from UBS, Puma, which has experienced sluggish sales in the U.S., has less flexibility to raise prices compared to Adidas.
Puma aims to sell between 4 million and 6 million pairs of its Formula 1-inspired $100 Speed Cat sneakers this year. However, slow sales have led to discussions about whether a price increase is the right move.
“Puma doesn’t have the momentum that other leading brands enjoy,” Krankowski noted.
Additionally, higher-priced brands are also adjusting their prices in line with Nike’s increases. Nike plans to raise prices for certain U.S. products in July, placing emphasis on running shoes, where adult sneakers typically sell for over $130. They describe this strategy as part of their overall goal to position themselves as the “most premium” global sportswear brand rather than merely a reaction to tariffs.
