Sportswear giant, Nike is set to introduce a new line of sneakers that will retail for 100 USD or less as part of the company’s wider aim to refine its product offering and bolster flagging sales.
In recent years, Nike has notably increased the list price of some of its more premium sneakers, like the Air Jordan 1 sneakers, which retail for up to 200 USD at select retailers, including Nordstrom and Nike.com. Similarly, the brand’s high-end Air Force 1 sneakers are priced at approximately 150 USD on Nike’s website.
“This is likely a bid to secure some more price-sensitive consumers,” said Neil Saunders, GlobalData analyst to Reuters on the new lower-price point range.
The news comes after a significant drop in Nike shares last Friday, which fell by 19.98 percent, the largest single-day percentage drop in the stock’s history, reaching a four-year low for the company. Nike previously reported an unforeseen sales decline during the last quarter, as the sportswear giant faces increasing competition from Adidas, Puma, On and Deckers’ popular Hoka brand.
During a conference call with analysts last week, executives also noted reduced foot traffic in their factory outlets, which offer discounted footwear and apparel, underscoring the growing economic challenges faced by budget-conscious consumers. Nike’s chief financial officer, Matthew Friend, told investors on Thursday that the brand’s “teams are also attacking opportunities across price points.”
Although more consumers are erring on the side of caution with their spending as disposable incomes feel the heat from inflation, certain styles like Clifton 9 from Hoka and Cloudflow 4 from On, which retail for 145 USD and 159.99 USD, respectively, remain popular with many consumers.
