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Nike isn't the only sneaker maker asking customers to pay more. Adidas's signature three-striped Superstar shoes now cost $70, nearly 8% more than a year ago. Overall basketball shoe prices were up 9.4% compared with a year before as of June, according to market researcher NPD Group Inc., while soccer cleats jumped 15.5% and running shoes climbed 5.5%.
Nike's basketball and soccer shoes make up about half its North American business, according to analysts.
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Nike also faces rising labor costs in China, where it manufactures a third of its products.
The company's shares, which have soared since the recession as it continued to report solid growth, plunged 10% in June after it reported profit dropped nearly 8% from a year earlier to $549 million, or $1.17 a share. Shares closed at $95.77 on Monday and are now flat for the year after hitting an all-time high of $114.81 on May 3.
Adidas is struggling with similar pressures: It said last month it is closing its only company-owned apparel factory in China to "improve efficiency." Adidas's increased labor and materials costs drove gross profit margins down to 48.2% from 49.2%.
Nike isn't the only sneaker maker asking customers to pay more. Adidas's signature three-striped Superstar shoes now cost $70, nearly 8% more than a year ago. Overall basketball shoe prices were up 9.4% compared with a year before as of June, according to market researcher NPD Group Inc., while soccer cleats jumped 15.5% and running shoes climbed 5.5%.
Nike's basketball and soccer shoes make up about half its North American business, according to analysts.
[..]
Nike also faces rising labor costs in China, where it manufactures a third of its products.
The company's shares, which have soared since the recession as it continued to report solid growth, plunged 10% in June after it reported profit dropped nearly 8% from a year earlier to $549 million, or $1.17 a share. Shares closed at $95.77 on Monday and are now flat for the year after hitting an all-time high of $114.81 on May 3.
Adidas is struggling with similar pressures: It said last month it is closing its only company-owned apparel factory in China to "improve efficiency." Adidas's increased labor and materials costs drove gross profit margins down to 48.2% from 49.2%.
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