Nike beat analyst expectations, yet the stock still tanked.
While the North American market remains stable, a double-digit sales slump in China is triggering panic on the markets. Local rivals are making life increasingly difficult for the US sportswear giant.
Details
📉 The China shock: Greater China revenues fell 17% to USD 1.42 billion. Most striking: Digital sales collapsed by more than a third, as Chinese consumers turn away from Nike’s own apps.
🧗 Tariffs squeeze margins: Higher US tariffs are weighing on gross margin, which dropped to 40.6%. To reduce exposure, Nike plans to sharply cut production in China by next summer.
🐉 Local champions pull ahead: Anta Sports overtook Nike in revenues three years ago and continues to defend its top spot. Li-Ning is also gaining market share with a stronger price-performance mix.
⚡ Speed beats mythology: Chinese brands bring new products from concept to shelf in three to six months. Nike takes longer. In a market driven by constant trend cycles, that becomes a structural disadvantage.
🧠 Pragmatism beats myth: Chinese millennial shoppers are increasingly trading the “brand premium” for functionality. Instead of Jordan mythology, quality, comfort, and price now matter most.
Who’s tripping Nike up in China?
- Anta is already the market leader in China and, with brands like Fila and Arc’teryx in its portfolio, has even pushed Adidas down to number three globally.
- Li-Ning is national pride in sneaker form. Strong designs and aggressive pricing make the brand especially popular with younger consumers.
- White-label brands score with solid materials and lower prices. They are strong online, data-driven, and extremely fast.
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