Topsports clarifies rumors about Nike online authorization, but anxiety over channel changes remains.

A rumor about Nike adjusting its online distribution system has put Topsports in the spotlight.

On June 25, Topsports released an announcement clarifying that the company has not received any official notice from Nike regarding the termination of their online distribution arrangement in Mainland China.

Previously, affected by the related rumor, Topsports' stock price had fallen for seven consecutive trading days, with a cumulative decline of nearly 27%; it plunged 14.6% during trading on June 24, hitting a period low. The company then suspended trading and issued an urgent response.

The full version of the market rumor is that Nike plans to cancel the authorization of first-tier online distributors in Mainland China starting January 1, 2027. If this adjustment is implemented, distributors will not be allowed to sell Nike products on any online platform, and consumers will only be able to buy Nike products online through Nike's official flagship store.

For Topsports, the core reason why this rumor quickly triggered a market response is that Nike remains one of its most important brand partners.

As a leading retailer of sports shoes and apparel in China, Topsports has long undertaken retail operations and distribution functions for international sports brands like Nike and Adidas in the Chinese market. If there were major changes to Nike's online distribution rights, it would directly affect not only a particular sales channel but also the boundaries of cooperation between Topsports and its core brands.

Topsports also disclosed in the announcement that, for the fiscal year ending February 28, 2026, revenue from online sales of Nike products accounted for about 22% of the group's total revenue.

More sensitively, the rumor has spread just as the 618 shopping festival is nearing its end. In recent years, prices for sports shoes and apparel on online platforms have been under sustained pressure, with discounts, reductions, platform subsidies, and distributor promotions all combining to drive some brand product prices lower.

For international sports brands like Nike, which rely on brand premium and price order, how to restructure online channels and stabilize pricing systems has always been a long-term market concern.

In the announcement, Topsports also mentioned that Nike and the group have continuously discussed various aspects of business collaboration, including the status of online sales arrangements.

Communication between the two parties about channel structure may not actually be anything new. Therefore, even though Topsports clarified that it has not yet received formal notice, the outside world still regards it as a signal of possible channel adjustments by Nike.

Topsports itself is currently under pressure. According to the company's disclosed operating data for the first quarter of the 2026/2027 fiscal year ending at the end of May 2026, total retail and wholesale sales (GMV) recorded a year-on-year decline in the low range of 10% to 20%, and the gross sales area of directly operated stores decreased by about 2.9% compared to the end of the previous quarter.

Offline stores are still being continuously downsized and adjusted, with limited recovery momentum in terminal consumption. By contrast, the performance of online channels is more resilient, with sales still maintaining double-digit growth.

In the broader industry context, Nike's growth momentum in the Chinese market remains insufficient.

If Nike further strengthens its official direct sales and flagship store system, it essentially wishes to strengthen its direct control over the price system, membership assets, and user data.

However, for distributors like Topsports, tightening brand channels means that their role in the industry chain needs to be repositioned, and in the future, they must find new leverage in their operational abilities, channel efficiency, and service value.

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