Nike reported a 22 percent revenue decline in Greater China for its first quarter, forcing a regional restructuring that will merge its Asian operations and cut corporate jobs next year.
Total group revenue fell 4 percent to $11.2 billion in the three months to August 31, weighed down by the steep slide across Chinese retail channels and a 28 percent drop at Converse.
Chief executive Elliott Hill outlined an operational overhaul called Pace to combine Nike’s geographic footprint into three operating divisions. Under the plan, Asia Pacific and Greater China will merge into a single entity named APGC. The Americas will combine North America and Latin America, while Europe, the Middle East and Africa will continue operating as EMEA.
The company is also establishing a corporate campus in Bengaluru, India, while reallocating capital toward product design, supply chain flexibility and core athletic categories. The restructuring will involve an unspecified number of layoffs across the business in 2027.
Folding Greater China into the broader Asia-Pacific division reflects a sharp change in how Nike manages its most lucrative growth engine of the past decade. Greater China previously ran as an autonomous reporting region with dedicated commercial teams in Shanghai.
Lumping the market with Southeast Asia, Japan, South Korea and Australia reduces administrative overhead, but it also signals that standalone hyper-growth in China is over. Local Chinese sports brands have steadily captured domestic market share across lower-tier cities, leaving Western labels to fight over promotional retail space in tier-one malls.
For retail landlords and franchise partners across Asia, the reorganization brings tighter product allocations and reduced exposure to lifestyle footwear.
Source link
