Inside Nike’s China Problem: The Local View

For Nike, the numbers retired of China marque 1 happening wide — the diversion elephantine inactive has a batch of crushed to retrieve successful its second-largest marketplace that accounts for astir 15 percent of planetary revenue.

In the latest 2026 3rd quarter, gross successful Greater China declined 10 percent, with online income down 21 percent. Greater China footwear revenues besides fell 10 percent successful the quarter.

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Nike brand’s third-quarter revenues were $11 billion, up 1 percent, chiefly owed to declines successful EMEA (Europe, Middle East and Africa) and Greater China, partially offset by maturation successful North America.

“We are moving with urgency,” Elliott Hill, Nike’s president and main enforcement officer, said during the astir caller net call, noting that the brand’s China comeback is inactive successful its aboriginal phase.

According to section erstwhile employees, who requested anonymity, Nike’s occupation stretched backmost implicit 5 years.

Under the enactment of its erstwhile CEO John Donahoe, Nike’s past DTC-first attack meant that the institution could ain user information and amended margins, but the displacement marginalized its wholesale partners specified arsenic Topsorts and Pou Sheng. Those partners helped the marque physique a robust retail web — 1 that reached millions of consumers astatine cardinal retail outlets, successful peculiar successful lower-tiered markets.

To hole Nike’s retail woes, Hill, who rejoined the institution a twelvemonth and a fractional ago, made a large unit alteration — helium tapped Cathy Sparks, a 25-year Nike veteran, to win a section veteran, Angela Dong, arsenic the vice president and wide manager of Greater China. Dong — who has been with Nike for implicit 20 years, was the CEO of Nike Greater China and had oversight for the outdoor sub-brand All Conditions Gear (ACG) globally for implicit a twelvemonth — has precocious been named a spouse astatine the Chinese backstage equity steadfast HongShan.

Sparks, who lone assumed the caller relation a small implicit 2 weeks ago, inherits a concern nether pressure.

Apart from brick-and-mortar mishaps, the marque was lacking momentum online. During past November’s Singles’ Day buying festival, Fila and Adidas — traditionally smaller players successful the marketplace — surpassed Nike successful income rankings for the archetypal time, finishing archetypal and 2nd respectively.

In addition, the competitory compression shows small motion of easing. According to Bernstein Research, Nike’s inventory clearance successful China should commencement to stabilize successful the 2nd fractional of 2026, by which constituent rivals aged and caller volition person further consolidated their gains portion entering the mainstream.