Nike has notified Pou Sheng International that online sales of Nike products in mainland China will fully cease from January 1, 2027, removing a channel that accounted for about 15% of Pou Sheng's 2025 revenue but only a small share of its profit. The decision is part of Nike's broader marketplace reset aimed at improving margins and supporting full-price sales, though it may temporarily pressure revenue in Greater China. JPMorgan recently downgraded Nike to Underweight, citing a potential US$1 billion China headwind and earnings pressure through fiscal 2028. Nike's investment narrative projects $49.0 billion in revenue and $3.7 billion in earnings by 2029, requiring 1.8% annual revenue growth and a $0.6 billion earnings increase from the current $3.1 billion.
Pou Sheng International Holdings LtdPou Sheng loses a channel accounting for 15% of 2025 revenue, though profit impact is small.
Nike IncNike's decision to end Pou Sheng online sales in China may pressure revenue, and JPMorgan cites a $1 billion China headwind.
JPMorgan Chase & Co