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Nike ( NKE ) hikes prices by up to $10 on shoes over $150

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Adidas, Puma had said they would not be first movers

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Puma says no decision yet on price hikes

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Sportswear competitors likely to follow

By Helen Reid

LONDON, May 22 (Reuters) - Adidas and Puma are likely to

hike prices for running shoes and sportswear in the United

States, following Nike's ( NKE ) lead, analysts and investors said on

Thursday, as U.S. tariffs on imports drive costs up for

retailers.

Nike ( NKE ) on Wednesday said it would raise prices next

week, charging up to $10 more for shoes currently costing more

than $150, while keeping prices stable for products under $100.

It is the biggest sportswear company by sales and market cap.

"That was the moment Adidas and Puma were waiting for," said

Robert Krankowski, sporting goods analyst at UBS.

Both German sportswear brands recently said they would not

be the first movers in raising prices, instead waiting to see

what rivals do.

"We should probably expect a similar decision from both

Adidas and Puma because ... this is not Nike ( NKE )-specific, it is an

industry issue. Everyone will be impacted by the tariffs,"

Krankowski added.

U.S. President Donald Trump has imposed a blanket 10% tariff

on all imports, and hit China with a higher tariff of 30%. More

worrying for sportswear brands, the key footwear and clothing

manufacturing hub of Vietnam faces the threat of a steep 46%

tariff returning in July.

Nike ( NKE ) described the announced price increases as part of its

normal seasonal planning, without mentioning tariffs.

Puma said on Thursday it is in talks with its U.S.

partners but has not decided whether or how it would adjust

prices. Adidas did not immediately reply to a request

for comment on its pricing plans.

"Historically, when the leading brand adjusts its prices,

competitors tend to follow suit shortly thereafter," said

Federico Borin, an analyst at Janus Henderson.

How high other brands raise prices will depend on their

assessments of U.S. shoppers' willingness to pay, which varies

based on how in-demand their sneakers or running shoes are.

Adidas, which has enjoyed a surge in sales thanks to trendy

vintage shoes such as the $100 Samba and $120 Gazelle, could

easily raise prices, said Simon Jaeger, portfolio manager at

Flossbach von Storch in Cologne, Germany, which holds shares in

Adidas and Nike ( NKE ).

Nike's ( NKE ) price increases are relatively modest, Jaeger added,

but "what concerns me more is that the U.S. consumer in general

is not as strong as a couple of years ago."

U.S. consumer sentiment slumped further in May while

one-year inflation expectations surged, according to the

University of Michigan Surveys of Consumers on Friday.

Given weaker demand, sportswear brands will have to

carefully manage their inventories at retailers, Jaeger said, to

avoid oversupplying and being forced to discount.

Puma, whose sales in the U.S. have been slowing, may have

less room to hike prices than Adidas, said UBS' Krankowski.

Puma has said it aims to sell 4 million to 6 million pairs

of its $100 Formula 1-inspired Speedcat sneaker this year but

sales have been slower than expected, raising the question of

whether it should hike the shoe's price.

"Puma doesn't have a massive first-mover advantage because

the other brands are taking more momentum," Krankowski said.

More expensive brands are also adapting as Nike ( NKE ) hikes

prices.

Running-focused On, whose adult sneakers sell for

$130 and up, plans to increase prices in July on certain

products in the U.S., saying this is part of its ambition to be

the "most premium" global sportswear brand and not a reaction to

tariffs.