US sportswear behemoth Nike is to face strategic restructuring including a Nike price hike in US, after a disastrous fourth quarter in fiscal year 2025. The firm posted a 14% drop in year-over-year direct sales and an eye-watering 26% fall in internet sales, and management reacted with cost control measures, product restaging, and judicious price increases.

Nike's fiscal quarter runs from May 31 to June 1, and the March–May quarter closed with total revenue 12% lower year on year at $11.1 billion. In North America, Q4 revenue was 11% down, and in EMEA it was 10% down. Greater China, comprising China, Hong Kong, Macao, and Taiwan, saw sales decline 20%, though CEO Elliot Hill explained that it was "largely in line with our plan.".

Despite this fall, Nike managed to surpass analyst expectations, with revenue and earnings per share (EPS) coming in 3.74% and 16.67% above projections, respectively. This led to Nike stock rising 10% in after-hours trading on the New York Stock Exchange as an expression of cautious investor optimism.

CEO Hill Oversees Strategic Turnaround

CEO of Nike, Elliot Hill, who emerged from retirement in October 2024, is spearheading a full-scale revival of the brand after previous mishaps, including pruning wholesale relationships and emphasizing lifestyle products at the expense of performance products.

Today, the company is repositioning in core sporting goods, investing in retail relationships, and adding new product lines. Hill characterized the new strategy as being based on what he calls a "sport offense" to establish more engaging relationships with athletes, fuel innovation, and differentiate itself in a competitive marketplace.

“We're organizing ourselves into a sports offense to have a more intimate relationship with the athletes we service," Hill told analysts, “To better know them, to drive sports-specific innovation, to tell great stories and differentiate ourselves in the marketplace."

Nike price hike in US Begins Fall 2025

Most important of all is price hikes on certain footwear lines in the US starting fall 2025. Nike price hike in US is supported by a broader plan to insulate profit margins from the increasing cost of production—specifically those resulting from new US tariffs on Chinese imports, now imposed by the Trump administration.

Hill described the price increases as "surgical," part of Nike's seasonal strategy. While some of the cost will be shared with retail partners and absorbed by suppliers, consumers will see higher price tags on some models in stores this fall.

Supply Chain Adjustments and Tariff Relief

China, which accounts for about 16% of Nike's US footwear imports, is also part of Nike's evolving strategy. Nike aims to reduce reliance on Chinese manufacturing by the end of fiscal 2026 by working to get down to the high single-digit percentage range. The move will guard against higher tariffs without harming Nike's global supply chain efficiency.

However, Hill pointed out that China will be one of the key centers for Nike's global business, although US-market production will be relocated to less-tariff-affected nations.

As estimated by CFO Matt Friend, the tariff cost impact would be $1 billion, with a 75-basis point gross margin impact for fiscal 2026—mostly in the first half.

Other Significant Developments: Inventory, Partnerships, and Delays in Women's Line

In addition to the price and supply realignments, Nike is also working to rid inventories, with a 0.4% reduction seen last quarter. Nike is also rebuilding relationships with major merchants such as Amazon by introducing a stand-alone Nike store on the platform.

But all is not well in the company. NikeSkims, the much-awaited line by Kim Kardashian, was delayed due to production issues, which slowed down the momentum on Nike's women's product business.

Future: A Page Turning Moment

Despite the disappointments of today, Hill is sure that Nike's repositioning will pay off in the end. "Where we sit, we believe our business is going to begin to improve. It's time to turn the page," he explained to shareholders.

As Nike price hike in US looms to take effect, and in renewed emphasis on sporting performance, retail alliances, and innovation, the company is wagering on a slimmed-down, agile future to ride out economic downturns and stiff competition in the worldwide sportswear industry.