On July 22, Nike fell 3.03% in regular trading, trading at $41.62/share, with turnover of $188 million. The decline came as the company formally announced a sweeping overhaul of its China online distribution network.

Nike officially confirmed that starting January 2027, it will terminate online sales authorization for thousands of third-party distributors in China. Online sales will be consolidated into official channels only — Nike's flagship stores on Tmall, JD.com, and Douyin, as well as the Nike website and App. The move aims to address pricing chaos, channel fragmentation, and inconsistent brand experiences that have plagued its China business amid two consecutive years of sales decline in what remains Nike's third-largest global market.

The announcement sent shockwaves through Nike's distribution partners. Topsports International, Nike's largest China distributor, saw its Hong Kong-listed shares plunge nearly 30% to a historic low, as Nike online sales accounted for approximately 22% of Topsports' total revenue. Another major distributor, Pou Sheng International, confirmed Nike online sales represented about 15% of its total revenue. Analysts at Citi warned that Nike's aggressive DTC pivot could result in market share losses to domestic rivals such as Li Ning and Anta.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)