Nike's operating revenue in the Chinese market plummets by 17%, expected to remain weak until 2026

Nike's quarterly operating revenue in the Chinese market fell by 17%, leading to a 10.5% drop in stock price. Although the operating revenue and earnings per share for the second fiscal quarter exceeded expectations, the gross margin decreased by 3 percentage points. Sales in the North American market grew by 9%, while sales in the Greater China region declined by 17%. Citigroup analysts predict that the weak trend in the Chinese market will continue until 2026. Nike expects a slight decline in operating revenue for the third fiscal quarter, with a gross margin decrease of 1.75 to 2.25 percentage points. Competitor Adidas saw a 10% increase in revenue in the Chinese market, while Puma's sales in the Asia-Pacific region fell by 9%