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Source: Nike / NIkeAt this point it’s no secret that Donald Trump’s idiotic and unnecessary tariff policies on America’s trade partners are going to spike prices on products all across the board and have American consumers pay more for everyday items.
While Nike and other sneaker brands warned customers that this would lead to higher price tags on their releases going forward, we’re now getting an idea of how this is going to effect not only consumers (sneaker prices have gone up a bit), but sneaker companies themselves.
According to CNBC, Nike is bracing itself for some rocky times after taking a big financial hit in their fiscal fourth quarter, and that was before Trump tariffs went into effect. Now that they’re prepping for tariffs to play a role in their costs on manufacturing, importing, etc, Nike is looking for ways to curb even more financial losses in the coming years. Hint, it might cost sneakerheads that much more to keep our feet fresh going forward.
With Nike’s direct revenue falling 14%, which was led by a 26% drop in digital sales and a 9% decline in wholesale, y’all know Nike is going to be making some changes and it will be coming directly out of our pockets.
CNBC reports:
While the worst could be behind the company, it has new challenges such as tariffs to face, making a tough turnaround that much more difficult. On a call with analysts, finance chief Matt Friend called the duties a “new and meaningful” cost.
“With the new tariff rates in place today, we estimate a gross incremental cost increase to Nike of approximately $1 billion” in its current fiscal year 2026, Friend said.
He added that the company intends to “fully mitigate” that cost over time as it tweaks its supply chain, works with its factory and retail partners and implements price increases.
Nobody likes to pay more for anything, but if sneakerheads have proven anything on the resale market it’s that they will pay more to look fly out in the wild. So, it shouldn’t be surprising that Nike and other sneaker brands wouldn’t hesitate to pass on the cost of tariffs to customers as will every other company that has products made in tariff-imposed countries.
Though Nike had a struggle fiscal fourth quarter (really due to the lack of interest in sneakers the brand was dropping at the time), Nike’s releases in 2025 have been selling like hotcakes. Retro Jordans and Nikes from yesteryear have once again become a hot commodity, which in turn caused Nike stock to jump over 10% as some hype for their products has returned. Couple that with the interest in the remaining releases that Nike has planned for the remainder of 2025 and they should be in better shape going into 2026.
What do y’all think about Nike’s plan to increase prices to offset losses going forward? Fair or foul? Let us know in the comments section below.
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