Nike China Distributor Pou Sheng Warns of 57% Profit Slump as Demand Weakens

Key Facts

1Pou Sheng, a major Nike distributor in China, warned that its 2025 profit will likely plunge 57% year-over-year to RMB 211 million.

2Revenue is expected to decline 7.2% to RMB 17.1 billion due to weak foot traffic and a mid-teens decline in same-store sales.

3Nike stock is currently trading at 2017 levels, down 65% from its 2021 peak.

Pou Sheng, a primary distributor for Nike in Greater China, has issued a severe profit warning for 2025, forecasting a 57% year-over-year plunge to RMB 211 million. The company anticipates a 7.2% decline in revenue to RMB 17.1 billion, driven by weak foot traffic and a mid-teens drop in same-store sales. This downturn is attributed to subdued consumer confidence in China, elevated industry inventory levels, and aggressive promotional activities that have squeezed margins. The warning highlights significant headwinds for Nike (NKE), whose stock is currently languishing at 2017 levels, down 65% from its 2021 peak. Operational deleverage and shrinking margins at key distribution partners underscore the structural challenges facing global retail brands in the Chinese market. Market analysts suggest that these developments confirm persistent demand issues in Nike's most critical growth region, potentially weighing on the stock's recovery prospects.