Nike Terminates Over 20-Year Online Distributor Partnerships in China, Effective January 1, 2027

According to statements from Topo International and Baosheng International released on Hong Kong Stock Exchange on July 22, Nike will terminate online sales authorization for these two distributors in mainland China, effective January 1, 2027, ending partnerships of 27 and 25 years respectively. The move concentrates Nike's online sales on official flagships on Tmall, JD.com, and Douyin, plus Nike's own website and app.

Topo International disclosed that online business accounts for approximately 22% of its total revenue, or about 5.6 billion yuan, and expects "significant negative impact." Baosheng International estimates the termination will affect approximately 15% of its total revenue. Topo's stock fell over 30% following the announcement.