Combing through the 10K: stepping up the China reset

研报英文原文证据摘录

Combing through the 10K: stepping up the China reset

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Nike

Combing through the 10K: stepping up the

China reset

Maintain Rating: NEUTRAL | PO: 47.00 USD | Price: 42.21 USD

Making some moves in China 23 July 2026

Nike terminated Topsports and Pou Sheng’s online sales in China effective Jan 2027. Equity

This is not a surprise given management’s interest in cleaning up the digital channel

after rampant promotional activity has hurt sales and margins. We estimate that these Lorraine Hutchinson, CFA Research Analyst

two parties’ online sales account total 12% of Nike’s China business and 1.5% of global BofAS

sales. Nike is focused on creating a consistent consumer experience between online and +1lorraine.hutchinson@bofa.com646 855 0951

offline with deep local partnerships and leading with sport instead of discounts. We Ryan Abbadi

expect it to try to replace these lost sales with sales on its own website or in stores. Research Analyst

BofAS

Our concerns about declining sales in China and sportwear are offset by inflecting +1 646 855 2279

margins and we retain our Neutral rating. ryan.k.abbadi@bofa.com

Trevor Tompkins

Inventory flat at $7.5bn, but the mix still needs work ResearchBofAS Analyst

Inventory ended the year flat, reflecting an increase in units offset by a shift in product +1 646 855 0343

trevor.tompkins@bofa.com

mix, making this metric slightly less healthy than it appears. NA inventory grew 4% with

a healthy closeout mix, EMEA grew 10% and is accelerating liquidation, Greater China

was down 17% as Nike continues to pull back deliveries in the market, and APLA grew

7% with a sequentially better closeout mix. The inventory reserve was reduced modestly Stock Data

to $213mn from $233mn, representing a small GM tailwind. Price 42.21 USD