Why Nike and Adidas Are Losing Shares in China?

Six reasons why domestic Chinese brands are making a killing

The following post is based on a similar article by Chinanews Finance this week, along with our own research.

Nike’s sales in China decreased 5% yoy in the February quarter this year (vs. global growth of +5%). This follows a 20% decline in its China sales in the November quarter last year. Nike (NKE) is expected to report next quarterly earnings on June 27.

Adidas’ China sales dropped 35% in the March quarter of 2022, following three quarters of double-digit declines. Adidas (ADS) is expected to announce the June quarter results on August 4.

For both Nike and Adidas, China accounts for around 20% of their worldwide sales. This used to the fastest growing market for these companies. Now everything has changed.