Nike Looks to Raise Prices “Across the Board” on Kicks and Apparel

Kubashi Kicks

Nike, in a statement made by CFO Don Blair during a conference call to analysts on March 18th, will be raising prices “across the board” due to rising costs of cotton, oil, and transportation.

Posted Wednesday, March 23, 2011 by P5

Nike’s fiscal year ends on May 31st and its closing could bring about a noticeably higher price tag s00ner than we know. Nike’s Global Growth Strategy foresees/plans for a blossoming of about $27 billion by 2015, the sneaker-heads will have no choice but to cough up the extra dollars or give up their sneaker whoring ways.

The good news is that Nike has the world’s most creative CEO in Mark Parker, so hopefully the minds behind the swoosh can devise alternative counteractive solutions to rising costs of materials without hurting the consumer (sneaker-heads everywhere bow their heads in a moment of silence).

Nike says the price of its trainers and clothes will increase this year to offset rising costs.

The sportswear company, which owns the Nike, Umbro and Converse brands, warned that the rising cost of cotton, oil and transportation will squeeze profit margins.

Nike’s chief financial officer Don Blair said in a conference call to analysts yesterday (18 March) that until now price increases had been in specific markets on particular product lines but from its next financial year prices would increase “across the board”. The company’s current financial year ends 31 May.

Blair was speaking as the company reported that net profit for its third quarter increased 5% to $523m. Revenue rose 7% to $5.1bn.

The gains were driven by a 21% revenue bump in China and a 19% gain in emerging markets, which partly offset a 2% fall in earnings from Western Europe.

Source: MarketingWeek/SneakerNews

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