Nike’s Back On Amazon And Is Hiking Prices — Retail Investors Breathe Sigh Of Relief

Nike is raising prices for its products and will resume selling its shoes and apparel directly on Amazon after several years, the latest in a series of efforts under CEO Elliott Hill to revive the business.

According to a Reuters report, the company said prices on apparel and equipment for adults will increase by $2 to $10 next week onwards, while those priced between $100 and $150 will see a $5 hike.

The company is not raising prices on children's products.

Meanwhile, its merchandise will be listed on Amazon.com (AMZN) in the United States.

Nike halted direct sales on Amazon in 2019 to focus on its own online and retail channels. Since then, Nike products have been sold on the site via third-party sellers.

Earlier this week, Amazon notified merchants selling Nike goods of this change and offered them a month to clear their inventory.

An excerpt of Amazon's letter to merchants, reported by Modern Retail, read: "[We] will be working directly with Nike to source a number of their products moving forward. As part of this change, you will no longer be able to sell certain Nike products on Amazon in the U.S."

The changes follow a major reorganization in top management and some job cuts in its technology division as part of revival efforts.

Nike has struggled in recent years due to a miscalculated shift away from multi-brand retailers and rising competition from emerging brands.

In October, Nike brought back veteran Hill as its CEO, and he has since led a series of changes as part of a broad turnaround plan.

Hill has said Nike will fix its relationships with retailers, refocus on its traditionally core areas like basketball and running, and sell more premium products.

In March, Nike reported quarterly earnings and gave a weak outlook, partially weighed by the impact of new U.S. trade tariffs.

On Stocktwits, the retail sentiment for the company rose to 'neutral' from 'bearish’ a day ago.

Following the Amazon news, a user said, "At this moment, nobody dare to short $NKE."

“Revenue growth is back baby! Let’s go to $150!” wrote another.

Nike shares are down 20% year to date.

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