Nike China Sales Drop 26% as Brand Plans Turnaround

Nike reported a 26% decline in Greater China sales for fiscal Q1 2027, extending a downward trend in the region. S&P Global forecasts that total China revenue for the company will drop approximately 30% for the full year. This decline occurs alongside a broader weakness in Chinese consumer demand for sportswear, which has also caused stock prices to fall for local competitors ANTA Sports and Li Ning, despite those brands gaining market share from Nike.

To address these losses, Nike plans to reclaim direct control of its digital sales in China in early 2027. The company will also increase its focus on wholesale partners and the development of locally designed products. In Western markets, Nike's performance categories returned to 2% growth, though challenger brands including On Holding, Deckers, and Wolverine have gained momentum in performance footwear.

Analysts suggest that Nike's recovery in core sport categories and potential inventory discounting could put pressure on these smaller rivals. Investors are now awaiting Nike's Investor Day on November 16–17, 2026, where the company is expected to present a five-year turnaround plan.