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・Citi called the strategy risky and said it could create an opening for rivals in China's sportswear market.
・BNP Paribas labeled the decision a strategic misstep, estimating the affected business generates $500 million to $1 billion in annual sales.
・Bernstein said Nike’s sales trends remain weak even as rivals such as Adidas continue to outperform.
Shares of Nike Inc. (NKE) fell nearly 3% on Wednesday afternoon after analysts raised concerns over the company’s decision to end online distribution through several China partners.
Nike said it is reshaping its approach in Greater China to create a more unified shopping experience, with plans to concentrate its online presence on official Nike shopping destinations across major Chinese digital platforms, including Tmall, JD.com and Douyin, as well as its own website and app, beginning in January 2027.
Leading China distributors Topsports and Pou Sheng said in exchange filings on Wednesday that they had received confirmation from Nike that existing online sales of its products would “terminate completely” from January 1 onward, according to TheFly.
The move drew criticism from some analysts, who warned it could create risks for sales trends and market share in China.
Citi Calls Nike’s China Shift ‘Extreme’ And ‘Risky’
Nike’s China strategy drew concerns from the Citi analyst, who maintained a ‘Neutral’ rating on the stock with a $45 price target, implying around 5% upside from Tuesday’s close. After Nike informed its two largest distribution partners in China that it would terminate most online distribution starting January 1, 2027, Citi called the decision “extreme” and “risky,” according to TheFly.
The firm said the move could open the door for competitors to gain share in China’s omni-channel market. Citi also expressed concerns that the decision could bring negative press in China and said it expects the stock to trade lower on the news.
Bernstein Says NKE Sales Trends Remain Under Pressure
Bernstein said the U.S. Sportswear demand tracker shows improving foot traffic trends and broadly accelerating web traffic, though sales trends remain uneven across the sector. According to the firm, Adidas continues to perform strongly, On trends have improved and emerging brands Alo and Vuori are still outperforming on growth. Meanwhile, Nike sales trends remain negative, Lululemon’s declines are worsening, and Deckers’ trends have slowed to flat or slightly negative.
Bernstein added that Nike prices remain up mid- to high-single digits and maintained an ‘Outperform’ rating on the stock with a $72 price target, implying around 68% upside from the last close.
BNP Paribas Calls Nike’s China Move ‘Strategic Misstep’
BNP Paribas maintained an ‘Underperform’ rating on Nike. The firm called Nike’s China move a “strategic misstep,” estimating that online wholesale represents a $500 million to $1 billion business for Nike, or 1% to 2% of total company sales. BNP Paribas said the move reminded it of Nike’s decision to exit certain North American wholesale partners, which it said resulted in the company ceding market share to competitors, according to TheFly.
NKE Stock: What Stocktwits Retail Sentiment Says
Retail sentiment on Stocktwits for NKE was ‘bearish,’ amid ‘extremely low’ message volume.
NKE shares have fallen over 30% year-to-date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.
