China’s fitness craze is booming, but NikeNKE

watched it happen from the sidelines. Its China revenue has plunged 30% since 2021, enduring eight straight quarters of declines as the country’s sportswear market grew 51%. After turning Nike into a global sneaker powerhouse, the world’s fastest-growing sportswear market has now become its smallest.

• Nike’s China sales peaked at $8.3B in fiscal 2021 and slid to $5.8B by fiscal 2026 — its lowest annual haul in eight years.
• Chinese shoppers turned to homegrown labels like Anta and Li-Ning after Nike released a forced-labor statement — fueling the government-backed “China Chic” movement.

The China hustle: Conversely, AdidasADDYY

and LululemonLULU

show what’s working in China. Adidas’s China revenue grew 13% last fiscal year after doubling down on locally designed products, while Lululemon’s comparable sales rose 20% over the same stretch. Nike is chasing the same formula, tapping a new Greater China product chief while also resetting its regional distribution system — a move that could trim another $1B from annual China sales. A pricey gambit, but Nike would rather bleed now than fade out of China for good.