Nike, Inc.

Nike’s premium positioning historically allowed high pricing power and strong margins (2024 gross margin ~45%). Its products command higher prices due to brand desirability. However, the recent strategy to liquidate excess inventory through heavy discounting has compressed margins.

Management has publicly committed to reduce promotions and restore premium pricing to rebuild brand value. Long term, Nike should have substantial pricing power, but currently, competitive pressures among athletic wear and fashion cycles limit rapid price increases.