ANTA Sports Products Ltd

Nike will stop selling through partner-operated online storefronts in China starting January 2027, a move Bernstein analysts say should lift the company's China operating margins by 200 basis points to 24% in fiscal 2027 but will also erase roughly $1 billion in revenue as the wholesale online channel is wound down. The channel represents a high-teens percentage of Nike's China business, and its elimination is expected to cause a low-teens constant-currency decline in China for fiscal 2027, dragging total company growth by 2 percentage points. Nike's digital presence in China will thereafter be limited to its direct web and app channels and official flagship stores on Tmall, JD.com, and Douyin, a shift aimed at curbing gray-market resellers and deep discounting that management says has hurt brand perception. Bernstein cut its Nike price target to $68 from $72 and lowered fiscal 2027 earnings-per-share estimate to $1.96 from $2.10, while maintaining an outperform rating. The broker named Adidas as the biggest near-term beneficiary, as partners like Topsports and Pou Sheng will need to replace lost Nike online volume, and also sees domestic brands Anta and Li Ning gaining at lower price points.

US sportswear giant Nike has announced plans to halt online sales of its products by major retailers starting January next year, directing consumers to its official channels as a countermeasure to sluggish sales in the Chinese market. Greater China Vice President and General Manager Cathy Sparks told Reuters that by restricting wholesalers' online sales and consolidating them into brand digital stores on Tmall, JD.com, and Douyin, as well as its official website and app, the company aims to restore brand value and reduce reliance on discounting. China is Nike's third-largest market globally, but Greater China revenue in the fourth quarter fell 17 percent year-on-year on a currency-neutral basis, continuing a downturn amid intensifying competition from domestic brands such as Anta Sports and Li-Ning. The move is part of CEO Elliott Hill's turnaround strategy, with most of the 16 sales partners operating Nike stores in China expected to cease online sales.