Nike's China Reset May Cost $1B as Analyst Warns of Revenue Hit

Nike's 'Win Now' China strategy is facing criticism from Wall Street analysts. JPMorgan has cut its second-half of 2027 and 2028 earnings estimates for Nike to 20% below consensus, citing revenue headwinds down the line from its Chinese market.

According to a report from TheFly, analyst Matthew Boss estimated that Nike would face a $1B revenue headwind in China for fiscal 2028 due to the company's decision to terminate online sales at Topsports and Pou Sheng. This move is part of Nike's 'Win Now' strategy, introduced by CEO Elliott Hill in 2024.

However, Morningstar analyst David Swartz remains optimistic about Nike's prospects in China, believing that the new policy may reduce near-term sales but will lead to long-term gains for partner retailers. The firm expects Nike to regain its leading market position and pricing power in the country by clearing old inventory and investing in marketing and local product development.