According to foreign media reports, Nike will increase the price of its sports shoes, hoping that its brand reputation can make it survive a period when many consumers are asking for discounts.

Analysts said that with the increase in labor, raw materials, and transportation costs, Nike will increase its shoes and clothing prices by 5% to 10%. This policy will be tested this autumn when Nike launches the most expensive athletic shoes to date. The sneakers are LeBron James basketball shoes, which are expected to sell for $315 and contain electronic components.

Prior to the price increase, Nike's gross profit margin in the latest quarter ended May 31 fell from 44.3% to 42.8%, which was the sixth consecutive year of decline. Currently Nike's profit margin is lower than most direct competitors, higher than Adidas AG and apparel manufacturer Under Armour Inc.

Since the economic downturn, Nike's share price has soared as Nike continues to report impressive growth. However, in June of this year, due to its reported profit decline of nearly 8% year-on-year to US$549 million (US$1.17 per share), its share price dropped by 10%. The stock closed at 95.77 U.S. dollars on Monday, and was unchanged from the beginning of the year after hitting a record high of 114.81 U.S. dollars on May 3.