China consumer

Research evidence excerpt

China consumer

Global Markets Research

23 June 2026China consumer

EQUITY: CONSUMER RELATED

2Q26 sales remained under pressure for Nike Research Analysts

China Consumer Related

2Q26 saw mid-single-digit% y-y decline in sales; stabilizing inventory Jizhou Dong, CFA - NIHK

level and discount a positive sign though jizhou.dong@nomura.com

+852 2252 1554

On 23 June, we hosted a channel check call with an expert with deep knowledge of

Summer Qian - NIHKChina’s sportswear sector to gauge the latest sales momentum and get operational summer.qian@nomura.com

updates on major sportswear brands, especially Nike (NKE US, Not rated). Our key +852 2252 6220

takeaways are summarised below:

2Q26 sales momentum remained weak

According to the expert, Nike’s sales in the mainland China market decreased by mid-

single-digit% (MSD%) y-y during quarter-to-date (QTD) 2Q26 (1Q26 sales were down by

low-teens% y-y). However, despite the narrowing y-y decline, the expert believed the

brand’s sales momentum in 2Q26 is still weak and also below the company’s

expectations. Specifically, during the 618 Shopping Festival (12 May to 20 June) this year,

Nike’s online GMV registered a positive (MSD%) y-y growth but only ranked as the third-

largest brand among sportswear companies selling through the Tmall channel [owned by

Alibaba (BABA US, Buy)], according to the expert.

On the positive side, Nike’s discount levels appear to have stabilized during QTD 2Q26 as

compared with the discount levels in FY25, thanks to the company’s destocking efforts

over the past few quarters, in view of the expert.

Looking into the rest of 2026E, the expert expects Nike’s China sales to maintain a flattish

y-y performance in 2026E as the result of: 1) fierce competition, 2) Nike’s lack of sufficient