GO
| HSI1 | 23,350.03 | +295.00 | 304.95B |
| HSCEI1 | 7,699.76 | +87.28 | 86.75B |
| Back Zoom + Zoom - Block Traded | |
|
2026-07-03 10:42:23 UBS released a report stating that Nike, Inc. (NKE.US)'s fourth-quarter results for the period ended May were broadly in line with expectations. Sales in Greater China fell 12% YoY in the fourth quarter, outperforming UBS expectations. In Greater China, the broker noted that Nike is adopting a more proactive inventory sell-in management strategy to improve the market ecosystem, and expected this strategic decision to continue exerting a significant negative impact on Nike's revenue performance in Greater China. Regarding Nike's potential online channel strategy adjustments in China, the broker believed there are three possible directions: retaining authorized retailers' livestreaming operations in physical stores and WeChat mini-program stores while terminating authorization on e-commerce platforms such as Tmall; revoking online operating authorization for small and medium-sized distributors while retaining authorization for major distributors; or fully terminating online distribution authorization. Based on management comments during the earnings conference call, the broker believed the likelihood of fully terminating online authorization is relatively low, as management emphasized the importance of strong local partnerships in China. This interpretation is positive for TOPSPORTS (06110.HK), helping ease previous market concerns over Nike fully terminating online sales authorization. Since Jun 22, TOPSPORTS shares have fallen more than 30%, mainly dragged by market concerns that Nike may terminate online authorization. In addition, Nike's average retail discounts declined in the latest fiscal quarter (March to May), aimed at strengthening its premium brand positioning in China. The company mentioned that after significantly reducing promotions over the past two quarters, the online full-price sell-through rate is recovering. As a market leader in China, Nike's efforts to reduce discounting and restructure online channels are believed to help ease price competition. This is positive for domestic brands such as LI NING (02331.HK), ANTA SPORTS (02020.HK), and XTEP INT'L (01368.HK), supporting market share gains and fostering a healthier promotional environment. (ha/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |