To anyone who knows anything about skateboarding Mark Gonzales needs no introduction. To those who don't know, The Gonz is a legend, a fearless and anarchic exponent of a style of street skateboarding probably best described as insane.

Nike Inc. is raising the prices of its sneakers, assuming that the brand's cachet will carry it through a period when many of its shoppers are scrounging for discounts. As labor, materials and shipping costs increase, Nike is raising shoe and clothing prices by 5% to 10%, analysts say. A test of the approach comes this fall, when Nike will debut its priciest sneaker yet—an expected $315 LeBron James basketball shoe that includes its own electronics. The price leaps come after Nike's gross margins dropped to 42.8% from 44.3% in its most recent quarter ending May 31, the sixth-straight year-to-year quarterly decline. Nike's margins are now lower than most of its direct competitors, rival Adidas AG and apparel maker Under Armour Inc. Nike isn't the only sneaker maker asking customers to pay more. Adidas's signature three-striped Superstar shoes now cost $70, nearly 8% more than a year ago. Overall basketball shoe prices were up 9.4% compared with a year before as of June, according to market researcher NPD Group Inc., while soccer cleats jumped 15.5% and running shoes climbed 5.5%.