Nike shares plunge after China sales slump; CEO signals reset of China strategy

Nike shares edged lower and then plunged in New York trading after a grim result in China underscored ongoing challenges for the company’s Asia footprint. Nike reported its sixth consecutive quarterly sales decline in the East Asia region known as Greater China, with sales in the three months to Nov. 30 down 17% to £1.06 billion. Footwear sales were hardest hit, dropping 21%, as the company contends with weak footfall at its Chinese stores and the need to discount unsold stock. Chief executive Elliott Hill said the company must reset its approach to the China marketplace, signaling a strategic shift as it grapples with a slower-than-expected rebound in demand in the region.

Across Nike’s global business, total sales for the quarter rose 1% to £9.3 billion, a sign of resilience in other regions even as China’s results weighed on sentiment. The stock fell about 11% in New York on the day, extending declines for the year as investors reassessed Nike’s growth trajectory in a market that has become a central point of focus for the brand’s expansion plans. The year-to-date drop neared 21%, reflecting a broader concern among investors about Nike’s ability to monetize its China footprint amid intensifying competition and evolving consumer preferences.

Nike has faced criticism in recent months for what some analysts describe as a lack of product cadence and appeal for younger consumers, particularly Gen Z, in China. The company has emphasized promotions to clear inventory and a need to refresh product lines and marketing as part of its longer-term turnaround plan. The results come as Nike continues to recalibrate its China strategy, with leadership signaling a reset to address the region’s slower foot traffic and the structural changes in consumer behavior that many brands are grappling with in the post-pandemic era.

Analysts will be watching how Nike translates Hill’s comments into concrete actions in China, including product cadence, store performance, and its online-offline strategy, in the coming quarters as it remains a pivotal market for the company’s growth ambitions.