Nike 
NKE fell 0.70% premarket after saying it will cut online distribution channels in China, concentrating sales on its own website and app plus Tmall, JD.com 
JD and Douyin from January. The move abandons an approach built on more than 1,000 digital storefronts, many operated by Nike’s physical retail partners. Distributor Topsports (6110) told the Hong Kong exchange that Nike had confirmed its online sales of the brand would end completely on January 1. Topsports shares dropped 24%.
The overhaul follows a run of declines in one of Nike’s most important markets. Greater China revenue fell 12% year on year to $1.3 billion in the three months to the end of May, extending a string of quarterly drops as international and domestic rivals gained ground. Cathy Sparks, who runs greater China for Nike, said the company’s presence “has become too fragmented” and that steps taken as consumer behavior shifted around Covid produced a less consistent and less trusted experience.
BNP Paribas analyst Laurent Vasilescu called ending partner online sales a strategic misstep, arguing Nike’s pullback from wholesale in the West handed shelf space to competitors and the same could happen in China, accelerating gains for On, Hoka, Salomon and a recovery at Adidas.
