Nike Tightens China Online Sales to Combat 17% Revenue Plunge
NKE is trading near its 52-week low of $40 (7.4% above the low).
Summary
Nike is overhauling its China e-commerce strategy, restricting wholesale partners from selling online and funneling sales through Nike-branded storefronts on Tmall, JD.com, and Douyin. The move, announced by Greater China head Cathy Sparks, aims to reduce marketplace clutter and rebuild brand premium, but comes as China revenue fell 17% in Q4—accelerating from a 10% decline. Starting in January, Nike will cut off thousands of online distributors in China. BNP Paribas called it a 'strategic misstep,' arguing Nike's core issue is product, not distribution. This follows months of restructuring, layoffs, and a lowered sales outlook, deepening concerns about the turnaround under CEO Elliott Hill.
At the time of this announcement, NKE was trading at $42.96 on NYSE in the Trade & Services sector, with a market capitalization of approximately $63.7B. The 52-week trading range was $40.00 to $80.17. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.