NIKE(US:NKE) Xi Niu Cai Jing·2025-10-10 04:23Core Insights - Nike is on a mixed recovery path, with CEO Elliott Hill indicating initial progress in the company's turnaround plan, but cautioning that restoring profit growth will take time [2] - In Q1 of FY2026, Nike reported revenue of $11.72 billion, exceeding market expectations, driven by a recovery in the North American market and a rebound in wholesale channels [2] - However, the Greater China market, Nike's second-largest, saw a significant revenue decline of 21% in Q4 of FY2025 and a 13% drop for the entire fiscal year, equating to a loss of approximately 7 billion RMB [2] Market Challenges - Nike faces intense competition in China from local brands like Anta and emerging brands such as On, which are capturing market share with competitive products and pricing [3] - The company is also engaged in aggressive price wars, exemplified by its "more than 50% off" slogan during the recent 618 shopping festival, which, while boosting sales, has negatively impacted profit margins, with the latest fiscal quarter's gross margin shrinking to 42.2% [3] Strategic Initiatives - To address these challenges, Nike has appointed veteran Dong Wei as Chairman and CEO of Greater China and Global CEO of the ACG outdoor brand, aiming to enhance local decision-making and deepen market engagement [3] - The company is advancing its "Win Now" strategy, centered on a return to sports, and is promoting its professional sports image through exclusive sponsorships, such as the Chongli 168 Super Trail Race [3] - The success of Nike's turnaround plan will be tested in the critical Chinese market, where reversing the current trend is essential for overall recovery [3]