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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InPou 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.