Nike China proactively adjusts: inventory units decrease by over 20% year-on-year

Nike China is progressing at its own pace.

On April 1st, Nike Group announced its fiscal third quarter 2026 financial report. This quarter, Nike’s revenue was $11.3 billion, flat compared to the same period last year. Among them, direct sales revenue was $4.5 billion, down 4% from the report basis; distributor sales revenue was $6.5 billion, up 5% from the report basis. Nike Group’s inventory assets totaled $7.5 billion, a 1% decrease from the same period last year. Nike Greater China revenue was $1.61B, down 10% year-over-year.

It should be noted that the decline in Nike China’s revenue is essentially a proactive adjustment.

“We are managing supply and continuously optimizing the inventory structure in the Chinese market, shifting toward more full-price sales and a healthier inventory mix. Although these measures may put short-term pressure on Greater China revenue, we expect profitability to bottom out more quickly because, with the rebuilding of the foundation, this will become a healthier, more profitable business and lay the groundwork for more balanced growth in China in the future,” said Nike CFO Matthew Friend during the earnings call.

Behind this is Nike’s continued use of inventory management and structural adjustments to optimize market supply and demand, providing a more solid foundation for business recovery in a complex and volatile market environment.

In the latest fiscal quarter, Nike’s inventory assets were $7.5 billion, down 1% year-over-year; in Greater China, the number of inventory units decreased by over 20% year-over-year, and partner inventories also achieved double-digit declines.

Strengthening Retail

What needs to be seen is that Nike China is undergoing some changes.

At a critical point of accelerating adjustment and restructuring of the Chinese market, Nike announced that veteran Cathy Sparks will serve as Vice President of Nike Group and General Manager of Greater China.

Cathy has extensive retail experience. According to Nike, she has 25 years of experience at Nike, starting her career in retail at the NikeTown store in Portland, then holding key leadership roles in various global markets. She previously served as Vice President and General Manager of Nike Asia Pacific and Latin America (APLA), with experience in driving business transformation and growth.

Nike mentioned that Cathy will lead the team to comprehensively drive business transformation and revitalization of brand momentum.

To some extent, placing a senior manager who is deeply familiar with Nike’s complex global market transformation and growth logic, with extensive retail experience, in China—one of the most complex and potential-rich strategic locations—may represent Nike’s hope to inject new momentum into its local business. The retail sector is clearly a focus.

Nike CEO John Y. H. Hsu also stated, “When we talk about China, we must lead with sports and innovation.”

With Cathy Sparks’ arrival, this strategic vision will be accelerated: focusing on core tracks such as running and basketball, continuously optimizing the digital channel ecosystem, upgrading physical retail experiences, and rebuilding consumer trust through more locally resonant brand storytelling.

To some extent, this management adjustment again highlights China’s key position in Nike’s global map and Nike’s determination to deepen its presence and proactively renew.

It is also worth noting that as the “Win Now” plan is further implemented in China, Nike is continuously upgrading retail experiences to create more immersive and interactive consumer experiences.

For example, during the recent Spring Festival, Nike partnered with strategic partners like Taobao and Baosheng to launch New Year athlete meet-and-greet events nationwide. Over 30 Nike signed athletes and coaches, including tennis legend Li Na, basketball player Guo Ailun, and Chinese national team head coach Shao Jiayi, traveled to 17 cities including Beijing, Shanghai, Chengdu, Shenyang, and Changsha, engaging face-to-face with consumers at Nike offline stores.

Additionally, Nike is strengthening channel cooperation. In the latest fiscal quarter, distributor sales revenue was $6.5 billion, up 5% from the report basis.

Thus, Nike is gradually moving toward a new stage of rebuilding brand experience and reshaping consumer connections.

And Cathy Sparks’ arrival will undoubtedly accelerate this process.

(# Focusing on Sports Demand

Meanwhile, Nike is optimizing its product system centered on sports.

This quarter, Nike accelerated product innovation across four major sports: running, basketball, outdoor, and soccer, driven by athlete demand.

Taking running as an example, Nike insists on consumer insights to drive product innovation. The new simplified road running shoe matrix is continuously improving, strengthening Nike’s product layout in the running market. Among them, the Nike Vomero series has received positive market feedback since its launch and has driven strong sales performance. Key products like Nike Structure Plus and Nike Pegasus 42 are also gradually being released.

As the road running product lineup becomes more complete, Nike is reconnecting with runners through a clearer matrix and more professional dialogue.

Driven by this, Nike’s running business grew 20% year-over-year this quarter.

In the basketball market, Nike is consolidating its foundation and dominance through a comprehensive product lineup that covers the practical needs of players.

The outdoor market has become a new growth point for Nike China. ![]###https://img-cdn.gateio.im/social/moments-7ccb11ce99-ac4b9e4556-8b7abd-badf29(

This quarter, Nike relaunched the Nike ACG brand, positioning it more clearly as a professional outdoor performance brand. Meanwhile, the world’s first ACG base camp officially opened in Beijing, further signaling Nike’s deepening focus on the Chinese market and its commitment to outdoor segments.

Against the backdrop of rapid outdoor sports popularity, China is viewed as a key strategic point for ACG globally. By establishing the first global flagship store in Beijing, Nike enhances ACG’s brand recognition in China’s outdoor consumer market and further promotes outdoor business as a new growth engine.

With the upcoming FIFA World Cup in North America and Mexico, the soccer market is full of potential. Nike debuted the 2026 national team series jerseys, including the Chinese national team, in China for the first time. Featuring revolutionary Aero-FIT cooling technology, these jerseys significantly improve breathability and comfort. Nike also deeply explores each team’s heritage, culture, and identity, expanding the dual value of jerseys in competition and culture; additionally, Jordan brand is making its first foray into national team soccer gear, further extending its expression in the soccer field. ![])https://img-cdn.gateio.im/social/moments-ad2482d6f5-f10590d2ac-8b7abd-badf29(

)# Strengths Remain

It should also be noted that all these explorations are built on Nike’s ecological advantages.

For example, in design and R&D, Nike, Jordan, and Converse brands have achieved resource sharing and capability synergy during the transformation. Innovation, design, and product teams share insights, exchange technologies, and integrate processes, gradually forming an integrated innovation system that accelerates the transition from concept to product and from product to market. Nike’s sustained, systematic investment in innovation not only enhances product appeal but also continually reinforces confidence in the brand’s long-term competitiveness.

For instance, the new Nike Mind platform has been a highlight this fiscal quarter, with over 150 patent applications submitted worldwide. Once launched, the series sold out quickly in global markets. To meet growing market demand, Nike plans to double Nike Mind production in the next two quarters. Currently, over 2 million consumers have submitted arrival notifications through Nike’s official channels, awaiting restocks.

Additionally, Nike possesses high brand recognition and deep consumer connections.

In marketing, Nike has the world’s most extensive and exclusive sports resources, covering different regional markets and sports audiences, helping the brand maintain a core position on the global sports stage. For example, Nike will support multiple national teams, including Brazil, in competing in this summer’s football tournaments. Nike maintains long-term deep collaborations with FIFA, NBA, NFL, and other top sports leagues. Moreover, Nike is a key equipment partner for many elite athletes across various fields.

Taking Nike China as an example, the company has witnessed the growth of athletes like Zheng Qinwen, Liu Xiang, and Li Na.

All these advantages serve as strong backing for Nike China’s goal of more balanced growth.

This article is for informational purposes only and does not constitute investment advice.