Adidas and Puma face tariff-driven price hikes

[WORLD] Adidas and Puma are expected to raise prices on running shoes and athletic apparel in the U.S., following Nike's recent announcement, as escalating import tariffs push up costs for retailers, analysts and investors said on Thursday.

Nike revealed on Wednesday that it would increase prices next week, with shoes priced above $150 set to rise by as much as $10, while prices for items under $100 will remain unchanged. The U.S.-based company, the largest in the global sportswear market by both sales and market capitalization, did not cite tariffs in its announcement, instead describing the hikes as part of routine seasonal pricing adjustments.

“That was the moment Adidas and Puma were waiting for,” said UBS sporting goods analyst Robert Krankowski. Both German brands had previously stated they would not initiate price increases, opting instead to observe their competitors’ actions.

“We can likely expect similar moves from Adidas and Puma because this isn’t a Nike-specific issue—it’s an industry-wide challenge driven by tariffs,” Krankowski noted.

The looming price increases come as the sportswear sector undergoes broader shifts in consumer behavior and market conditions. The COVID-19 pandemic accelerated the pivot to online shopping, prompting brands to strengthen their e-commerce strategies. This transition adds complexity to pricing strategies, as companies strive to remain competitive while protecting profit margins in a dynamic retail environment.

Recent U.S. trade policies have added pressure. President Donald Trump has enforced a general 10% tariff on all imports and a 30% tariff on goods from China. More critically for sportswear firms, Vietnam—a key production hub for footwear and apparel—faces the potential reinstatement of a steep 46% tariff in July.

On Thursday, Puma said it is currently in discussions with its U.S. partners and has not yet decided on any pricing changes. Adidas has yet to respond to inquiries about its plans.

“When the market leader adjusts prices, competitors often follow shortly afterward,” said Federico Borin, an analyst at Janus Henderson.

Tariffs are impacting the industry beyond just pricing. To mitigate rising costs, companies are exploring alternative sourcing options, such as relocating manufacturing to countries with lower tariffs or investing in more efficient production methods. These strategic shifts aim to preserve margins amid growing trade uncertainties.

How much rival brands increase prices will likely depend on their assessment of U.S. consumer price tolerance, which varies based on brand popularity and product demand. Adidas, buoyed by the success of retro models like the $100 Samba and $120 Gazelle, may have more flexibility to adjust pricing, said Simon Jaeger, portfolio manager at Flossbach von Storch in Cologne, Germany, a shareholder in both Adidas and Nike.

“Nike’s increases are modest,” Jaeger added, “but what’s more worrying is that U.S. consumers aren’t as financially resilient as they were a few years ago.”

Softening consumer sentiment is a growing concern for the sector. With inflation climbing and economic uncertainty persisting, shoppers are becoming more cautious, potentially shifting to budget-friendly options or delaying purchases. Brands will need to stay attuned to these changes to avoid missteps in pricing strategy.

Recent data from the University of Michigan showed a further dip in U.S. consumer sentiment in May, coupled with rising short-term inflation expectations. As demand weakens, sportswear companies must manage retail inventories carefully to avoid excess stock and markdowns, Jaeger warned.

For Puma, slower U.S. sales could limit its ability to implement price hikes. The company aims to sell between 4 million and 6 million pairs of its $100 Formula 1-inspired Speedcat sneakers this year, but sales have fallen short of expectations, casting doubt on its pricing flexibility.

“Puma lacks a strong first-mover advantage here, especially as its competitors are gaining more traction,” said Krankowski.

Other premium brands are also adjusting to the changing landscape. Swiss-based On, which sells adult sneakers starting at $130, plans to raise U.S. prices on select products in July. The company emphasized that this move aligns with its goal to become the world’s leading premium sportswear brand, rather than a direct response to tariff-related pressures.