Latest news with #Vomero18
Miami Herald
17 hours ago
- Business
- Miami Herald
Nike has bad news for its loyal customers
There's nothing quite like the feeling of opening a fresh box of Nikes. That new-sneaker smell. Those crisp, clean laces. But something's about to mess with that magic. It's not the design. It's not the tech. And it's not because your favorite athlete jumped to another brand. So not great news. Related: Nike fumbles its biggest launch of the year Nike's been through it this past year. Softening sales, too much old inventory, a messy digital experience. But it's been trying to fight back. New shoes. New strategy. New hype. And just as the company was starting to turn the corner, another pressure point landed. Like most surprises in 2025, this one comes with a price. Literally. Nike confirmed during its Q4 earnings call that new U.S. tariffs on imported footwear will cost the company an estimated $1 billion. Ouch. To offset the hit, Nike's pulling the lever it knows best: raising prices. But it's not the only lever. The company also said it's shifting production away from China and working with suppliers and retail partners to share the burden. The price hikes have already started. On June 1, prices went up - a move Nike brushed off as a "normal seasonal adjustment." Nothing to see here. Now, just a few weeks later, another round of increases is on the way. And this time, there's no dancing around it. Nike directly acknowledged the new price hikes are in response to tariffs. Related: Lululemon makes drastic cuts as part of strategy change "With the new tariff rates in place today, we estimate a gross incremental cost increase to Nike of approximately $1 billion," CFO Matt Friend said. Two price hikes in just a few months. One already in effect. One more on the way this fall. For shoppers, it all adds up. Nike can call them surgical, but to customers, they may feel more like salt in the wound. Inflation is already brutal. It's a risky move for a brand on the road to a comeback. Sticker shock probably isn't the vibe Nike wants heading into back-to-school and the holiday season. But execs say they're focused on long-term momentum, even if it means losing a few loyal fans along the way. Translation: Nike's way of saying "sorry, not sorry." These new price hikes land during what should be a turning point for Nike. The company is deep into its "Win Now" strategy, focused on overhauling internal teams, elevating performance product, and rethinking its once-overstuffed lineup of classics like the Dunk and Air Force 1. Full-year revenue fell 10% to $46.3 billion. Net income dropped a staggering 44% to $3.2 billion. That's nearly half of what Nike brought in the year before. But there are signs of progress: the new Vomero 18 already surpassed $100 million in sales. More on retail: Stanley Cup fans won't want to miss what just launchedH&M has bad news for its loyal customersWhy beauty will be the beast of Amazon Prime Day deals And recent wholesale orders from retail partners are trending up - especially in North America, where Nike is trying to strike the right balance of hype, distribution, and price. Still, timing is everything. And with customers already feeling stretched, any price hike carries risk. Tariffs may be out of Nike's control, but perception isn't. And in a crowded athletic market, that matters. For loyal fans, the latest chapter in Nike's comeback might come with an unwelcome twist: paying more. Because, hey, "Just Do It," right? Related: FedEx's cost-cutting could impact package delivery The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Fashion Network
20 hours ago
- Business
- Fashion Network
Nike's turnaround strategy faces stiff headwinds from tariffs and rivals
Nike is making progress in clearing out stocks of out-of-fashion sneakers, particularly the Air Force 1. The company believes it will have worked through the backlog by the end of the first half of this fiscal year. Not having to discount so heavily should boost profitability. Nike expects its gross margin — the difference between the price at which it buys and sells goods — to be down by 3.5 to 4.25 percentage points, including a 1 percentage point hit from tariffs, in the first quarter, compared with a 4.4 percentage point decline in the final three months. The company also looks to be ending its new product drought. The Vomero 18 shoe has generated more than $100 million in sales since its launch at the end of February. Meanwhile, the frenzy around the new hybrid loafer and sneaker, the Air Max Phenomena, has driven resale prices beyond $500 — even before its official release. That looks like a blast from Nike's past, when new models had sneakerheads salivating. Also evoking the kind of innovation that has been so sorely lacking is the Cryoshot, which reinterprets classic football boots for everyday dressing. It builds on the #bootsonlysummer TikTok trend of wearing soccer cleats in the street. For the past two and a half years, such foresight has largely belonged to Gulden. It's a welcome shift to see Nike finally riding a trend — rather than missing it, as it did with retro low-rise shoes. But Hill is far from the finish line. The delay in launching NikeSkims — the collaboration between the sportswear giant and Kim Kardashian 's shapewear company — looks like an own goal, especially given the hype around the tie-up. Of course, Hill wants to make such an important debut, right? However, the long gap between the February announcement and the product release seems unfortunate. It gives rivals like Lululemon Athletica Inc. time to spruce up their collections. The CEO also faces the challenge of Donald Trump 's tariffs. While no company is immune from the levies, they are especially unhelpful to retailers amid revival plans, such as Nike, Target Corp. and Gap Inc. Nike said it faced a cost — before any measures to mitigate the impact of tariffs — of about $1 billion. However, it aims to work with its suppliers and retail partners to offset some of the expense and will implement 'surgical' price increases beginning this fall. The last time sneaker makers encountered such a significant external challenge was four years ago, when Covid-19 lockdowns in Vietnam disrupted supply chains. At the time, Nike didn't struggle with demand — consumers were still clamoring for its sneakers. Today, however, it faces fierce competition not only from a resurgent Adidas but also from rising challengers like On Holding AG and Deckers Outdoor Corp.'s Hoka, which gained ground while Donahoe pursued his ill-fated strategy of selling directly through Nike's own stores and websites. As in the luxury sector, brands that remain highly desirable to consumers will be the ones able to raise prices. Through to Thursday's close, Nike shares are down about 34% over the past year, and about 23% since Hill's appointment in September. They trade at about 2 times the next 12 months' sales, compared with Adidas's 1.5 times. That premium will look too lofty until Hill can turn trying into victory. The views expressed are those of the author and do not necessarily reflect those of the publication or its affiliates. Andrea Felsted is a Bloomberg Opinion columnist covering consumer goods and the retail industry. Previously, she was a reporter for the Financial Times. with Reuters
Fashion Network
20 hours ago
- Business
- Fashion Network
Nike's turnaround strategy faces stiff headwinds from tariffs and rivals
Nike is making progress in clearing out stocks of out-of-fashion sneakers, particularly the Air Force 1. The company believes it will have worked through the backlog by the end of the first half of this fiscal year. Not having to discount so heavily should boost profitability. Nike expects its gross margin — the difference between the price at which it buys and sells goods — to be down by 3.5 to 4.25 percentage points, including a 1 percentage point hit from tariffs, in the first quarter, compared with a 4.4 percentage point decline in the final three months. The company also looks to be ending its new product drought. The Vomero 18 shoe has generated more than $100 million in sales since its launch at the end of February. Meanwhile, the frenzy around the new hybrid loafer and sneaker, the Air Max Phenomena, has driven resale prices beyond $500 — even before its official release. That looks like a blast from Nike's past, when new models had sneakerheads salivating. Also evoking the kind of innovation that has been so sorely lacking is the Cryoshot, which reinterprets classic football boots for everyday dressing. It builds on the #bootsonlysummer TikTok trend of wearing soccer cleats in the street. For the past two and a half years, such foresight has largely belonged to Gulden. It's a welcome shift to see Nike finally riding a trend — rather than missing it, as it did with retro low-rise shoes. But Hill is far from the finish line. The delay in launching NikeSkims — the collaboration between the sportswear giant and Kim Kardashian 's shapewear company — looks like an own goal, especially given the hype around the tie-up. Of course, Hill wants to make such an important debut, right? However, the long gap between the February announcement and the product release seems unfortunate. It gives rivals like Lululemon Athletica Inc. time to spruce up their collections. The CEO also faces the challenge of Donald Trump 's tariffs. While no company is immune from the levies, they are especially unhelpful to retailers amid revival plans, such as Nike, Target Corp. and Gap Inc. Nike said it faced a cost — before any measures to mitigate the impact of tariffs — of about $1 billion. However, it aims to work with its suppliers and retail partners to offset some of the expense and will implement 'surgical' price increases beginning this fall. The last time sneaker makers encountered such a significant external challenge was four years ago, when Covid-19 lockdowns in Vietnam disrupted supply chains. At the time, Nike didn't struggle with demand — consumers were still clamoring for its sneakers. Today, however, it faces fierce competition not only from a resurgent Adidas but also from rising challengers like On Holding AG and Deckers Outdoor Corp.'s Hoka, which gained ground while Donahoe pursued his ill-fated strategy of selling directly through Nike's own stores and websites. As in the luxury sector, brands that remain highly desirable to consumers will be the ones able to raise prices. Through to Thursday's close, Nike shares are down about 34% over the past year, and about 23% since Hill's appointment in September. They trade at about 2 times the next 12 months' sales, compared with Adidas's 1.5 times. That premium will look too lofty until Hill can turn trying into victory. The views expressed are those of the author and do not necessarily reflect those of the publication or its affiliates. Andrea Felsted is a Bloomberg Opinion columnist covering consumer goods and the retail industry. Previously, she was a reporter for the Financial Times. with Reuters ($1 = £0.73)
Fashion Network
a day ago
- Business
- Fashion Network
Nike's turnaround strategy faces stiff headwinds from tariffs and rivals
Nike is making progress in clearing out stocks of out-of-fashion sneakers, particularly the Air Force 1. The company believes it will have worked through the backlog by the end of the first half of this fiscal year. Not having to discount so heavily should boost profitability. Nike expects its gross margin — the difference between the price at which it buys and sells goods — to be down by 3.5 to 4.25 percentage points, including a 1 percentage point hit from tariffs, in the first quarter, compared with a 4.4 percentage point decline in the final three months. The company also looks to be ending its new product drought. The Vomero 18 shoe has generated more than $100 million in sales since its launch at the end of February. Meanwhile, the frenzy around the new hybrid loafer and sneaker, the Air Max Phenomena, has driven resale prices beyond $500 — even before its official release. That looks like a blast from Nike's past, when new models had sneakerheads salivating. Also evoking the kind of innovation that has been so sorely lacking is the Cryoshot, which reinterprets classic football boots for everyday dressing. It builds on the #bootsonlysummer TikTok trend of wearing soccer cleats in the street. For the past two and a half years, such foresight has largely belonged to Gulden. It's a welcome shift to see Nike finally riding a trend — rather than missing it, as it did with retro low-rise shoes. But Hill is far from the finish line. The delay in launching NikeSkims — the collaboration between the sportswear giant and Kim Kardashian 's shapewear company — looks like an own goal, especially given the hype around the tie-up. Of course, Hill wants to make such an important debut, right? However, the long gap between the February announcement and the product release seems unfortunate. It gives rivals like Lululemon Athletica Inc. time to spruce up their collections. The CEO also faces the challenge of Donald Trump 's tariffs. While no company is immune from the levies, they are especially unhelpful to retailers amid revival plans, such as Nike, Target Corp. and Gap Inc. Nike said it faced a cost — before any measures to mitigate the impact of tariffs — of about $1 billion. However, it aims to work with its suppliers and retail partners to offset some of the expense and will implement 'surgical' price increases beginning this fall. The last time sneaker makers encountered such a significant external challenge was four years ago, when Covid-19 lockdowns in Vietnam disrupted supply chains. At the time, Nike didn't struggle with demand — consumers were still clamoring for its sneakers. Today, however, it faces fierce competition not only from a resurgent Adidas but also from rising challengers like On Holding AG and Deckers Outdoor Corp.'s Hoka, which gained ground while Donahoe pursued his ill-fated strategy of selling directly through Nike's own stores and websites. As in the luxury sector, brands that remain highly desirable to consumers will be the ones able to raise prices. Through to Thursday's close, Nike shares are down about 34% over the past year, and about 23% since Hill's appointment in September. They trade at about 2 times the next 12 months' sales, compared with Adidas's 1.5 times. That premium will look too lofty until Hill can turn trying into victory. The views expressed are those of the author and do not necessarily reflect those of the publication or its affiliates. Andrea Felsted is a Bloomberg Opinion columnist covering consumer goods and the retail industry. Previously, she was a reporter for the Financial Times.
Tom's Guide
5 days ago
- Entertainment
- Tom's Guide
Is this the most comfortable Nike running shoe ever made? What you need to know about the Nike Vomero Premium
The Nike Vomero 18 is already one of the most cushioned running shoes you can get, so when I say that the new Nike Vomero Premium and Vomero Plus offer even more foam underfoot, you know they're going to be exceptionally comfortable shoes. Both have just launched and sit above the Vomero 18 in Nike's max-cushioned shoe line-up. The Vomero Plus looks like a direct replacement for the Nike Invincible 3, with a similar overall design, while the Vomero Premium is something completely new. The Vomero Premium has an incredibly high stack height of 55mm at the heel and uses a mix of foams in the midsole to create the most cushioned ride of any Nike shoe, with the brand suggesting it delivers a similar sensation to running on an anti-gravity treadmill in how it protects the body from the impact of the sport. Both the Vomero Premium and Vomero Plus will likely rival the best running shoes for those who love a very cushioned ride, but you'll have to wait to get your hands on them. The Vomero Plus launches on August 7, and the Vomero Premium goes on sale at select retailer partners on October 2, before its global release on October 16. The Vomero 18 might not be as cushioned as the Vomero Premium, but it's still a very comfortable shoe and a lot cheaper. It's a great option for cruising through your daily training runs, and it's available now. The Vomero line-up of shoes is all about cushioning, and the Vomero Premium takes that to new heights with its towering midsole stack, standing 55mm tall at the heel — 9mm higher than the Vomero 18. That midsole is made up of two materials, with two Air Zoom units that are mostly surrounded in ZoomX foam. Both of these materials deliver a high level of energy return and the ZoomX foam is soft and squishy, so the ride should be both comfortable and bouncy. Get instant access to breaking news, the hottest reviews, great deals and helpful tips. Nike says the Vomero Premium was developed to meet the needs of elite runners who needed a comfortable but still springy ride to help them rack up a lot of miles in training while reducing the impact of those miles. The shoe has been used by Kenyan elite runner Faith Kipyegon during her training as she attempts to be the first woman to run a 4-minute mile. 'It's so soft, cushioned and comfortable,' says Kipyegon. 'It helps me train harder with less impact to allow me to recover faster and stay focused on my goal." Nike's product team aimed to recreate the sensation of running on an anti-gravity treadmill with the Vomero Premium, with regards to how it reduced the impact of training. "Anti-gravity treadmills supplement an athlete's body weight so they can run with less impact, which our athletes tell us means more miles with less recovery time," says Ashley Campbell, expert product line manager and Nike Running. "The Vomero Premium aims to provide a high amount of impact reduction and a similar sensation to the anti-gravity treadmill experience." All this technology comes at a high price, with the Vomero Premium priced at £209.99. It will be interesting to see how the shoe feels on the run — the Nike Pegasus Premium launched with a similar level of hype but felt a little clunky on the run during my testing. At time of writing, Nike hasn't confirmed US pricing. You can get an idea converting GBP into USD, although this is just a guess at this point, as the tariffs applied to non-U.S. goods could (and probably will) mean that the price will be higher in the U.S. The Nike Vomero Plus might not have as much hype around it at launch as the Nike Vomero Premium, but fans of the Nike Invincible line will be delighted by its arrival. That's because it looks like a replacement for the Invincible 3, with a max-cushioned design that exclusively uses ZoomX foam in the midsole. It has a stack height of 45mm at the heel, so isn't as outlandishly tall as the Vomero Premium, but it's 4mm higher than the Invincible 3 and around the same as the Vomero 18, which uses a mix of Nike's ReactX and ZoomX foams in its midsole. The Vomero Plus will probably be lighter than the Vomero Premium because of its lower midsole stack and the fact it just uses ZoomX, which is a very lightweight material also used in racing shoes like the Nike Alphafly 3. It's also cheaper, costing £159.99 (U.S. price TBC), which is £25 more than the Vomero 18, which is the most affordable Nike option for those craving a max-cushioned ride.
