Retailers will cut prices on more Nike sneakers this year. Retailers will cut the price of Nike shoes twice as much as they did two years ago. According to analyst firm Vertical Knowledge, this could threaten the sportswear giant’s strong pricing power at a time of intense competition from rival sneaker brands. The analysts compared Nike’s sneaker pricing at multinational chains such as — Foot Locker , Dick’s Sporting Goods, Macy’s, and found that retailers cut prices by an average of 44% in 2024. This discounting trend means a reduction in margin for Nike Inc. but instead an increase in sales and a possible expansion of sales among middle and lower class customers in the future. Currently, Nike’s retail prices are in the $50 and above price range. For this price, one can buy basic Nike running shoes. The price of high end running models can go up to over USD 200. Last week, for example, the Nike Lebron 20 shoes were discounted from $170 to $129.99 at the Foot Locker store in New York.
Nike Inc. also surprised investors late last year by lowering its revenue outlook for this year. Nike has long marketed its shoes as sought-after premium products. Footwear industry analyst Matt Powell said Nike is “filling the market” with best-selling sneakers, such as retro lifestyle sneakers and iterations of its Jordan brand, and releasing too many styles to retailers despite signs that shoppers are tired of Nike shoes.
NIKE, Inc (NYSE: NKE) also plans to release its third quarter 2024 financial results on March 21. Following the press release, NIKE, Inc. management will hold a conference call beginning at 2:00 p.m. Pacific Time to review the results. The company also pays an attractive dividend of $0.37 per share each quarter. The annual dividend yield is 1.45%. Multinational investment corporations and financial strategists estimate an average target price of $123.00 per share for the short , to medium term investment horizon.
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