Nike turnaround wobbles as China sales slump 17%

For the quarter ending May 31, Nike's global revenue slipped 1% year-on-year, while Greater China sales fell 17%. The decline, though less severe than the 20% drop forecast three months ago, marked a worsening from the previous quarter's 10% decline.

China accounts for around 15% of Nike's global revenue, making it the company's third-largest market after North America and Europe, the Middle East and Africa. The region has become increasingly challenging as domestic sportswear brands such as Anta and Li Ning gain market share with locally relevant products and faster innovation.

CEO Elliott Hill acknowledged that Nike's recovery remains uneven. "We know we're not living up to our full potential," he said. The company is working to refocus around performance sports and manage excess inventory.

Nike's revenue is forecast to continue declining through the first half of fiscal 2027 as it faces ongoing tariff pressures and cautious consumer spending. The company is making efforts to stabilize its business, but the China market remains a significant drag.