Nike has been going through a rough patch. But under CEO Elliott Hill global progress is poking its head above the parapet. A turnaround seems underway. In China, though, Nike sales continue to slump.
For the quarter ending on 31May, Nike’s revenue slipped 1% year-on-year, while Greater China sales fell 17%. Although the decline was less severe than the 20% drop the company had forecast three months ago, it marked a worsening from the previous quarter’s 10% decline.
‘We know we’re not living up to our full potential.’
Nike CEO, Elliot Hill
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. Domestic sportswear brands such as Anta and Li Ning continue are snapping up market share with locally relevant products and faster innovation and Nike is feeling that in its pocket.
Elliot Hill isn’t burying his head in the sand about this. He’s acknowledged that Nike’s recovery remains uneven. In his own words: ‘We know we’re not living up to our full potential.’
Nike revenue is forcasted for continued decline through the first half of fiscal 2027 as it works off excess inventory and faces ongoing tariff pressures. Cautious consumer spending isn’t going to help either. But efforts are being made, largely to refocus the business around performance sports. Wholesale partnerships are being rebuilt, and new product launches accelerate too.
The company is also betting that a stronger pipeline of football products and marketing tied to this year’s World Cup will help revive momentum. Management said demand for football products has already begun recovering after a slowdown in April, while North America returned to growth with revenue rising 3%.
The Dao View: Nike need to outplay Anta to beat the China sales slump
Nike’s China problem is becoming increasingly structural rather than cyclical. While inventory clean-up should eventually improve sales comparisons, local champions Anta and Li Ning offer very serious competition.
They have spent years strengthening product innovation, athlete endorsements and cultural relevance. If Nike want to claw back their lost Chinese market share, it will require more than new product launches and wishful thinking.
