Nike will sell cheaper self-lacing shoes next year

Nike (NKE) will launch its second-generation hi-tech self-lacing sneakers in 2019 at a cheaper price tag of $350. This was confirmed in the earnings call and the sneakers are designed to be used on the basketball court with a spring launch date. The company sees greater opportunities for moderately priced footwear right now.

Nike has been gearing up to bring out an updated version of the self-lacing sneakers with a cheaper price tag. At the earnings call on Thursday, Nike confirmed of a sneaker that will be used for basketball. The company said the new product is just one better fit solution amongst many and will be rolling out throughout the year.

In addition, Nike has a full innovation pipeline ahead, including new cushioning platforms, which will carry its strong product momentum into fiscal 2020 and Tokyo Olympics. The company is expanding the Nike React platform beyond running and basketball into a lifestyle product, with the Element 55 and the shoe of the year, the Element 87. Both styles will scale significantly in 2019.

Nike Q2 results beat on broad-based sales growth; stock gains 7%

For the second quarter, Nike reported a 10% jump in earnings as its digital transformation initiatives drove double-digit revenue growth. Revenues of the footwear and apparel segments rose 11% and 10% respectively, while equipment revenues dipped 1%. The growth was also broad-based across all four of its geographies, as well as across footwear, apparel, men’s, women’s and most categories.

Looking ahead, the company expects new innovation platforms to drive over 50% of its incremental growth over the next five years. Nike expects NIKE Direct and partnered NIKE experiences physical and digital to contribute over 50% of its incremental growth and outpace undifferentiated retail over the next five years.

Shares of Nike opened higher on Friday and is trading in the green territory. The stock has risen over 7% in the year so far and over 4% in the past year.

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