Topsports Clarifies It Has Not Received Nike's Notice to Terminate Online Authorization; Related Revenue Accounts for 22% of Total Sales
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Topsports (滔搏) said it has not received any formal notice from Nike to terminate online distribution in mainland China, but the rumor alone drove its stock down nearly 27% over seven trading days — online sales account for 22% of group revenue, and channel restructuring pressure is already real.
What actually happened?
Market rumors said Nike plans to revoke online tier-one distributor authorization in mainland China from January 1, 2027, limiting online purchases to Nike's own flagship stores.
The rumor sent Topsports shares down for seven consecutive trading days, falling nearly 27% in total — with an intraday plunge of 14.6% on June 24 before the company halted trading.
On June 25, Topsports issued an urgent clarification: it has not received any formal notice from Nike.
Why did the 22% figure rattle the market so badly?
Topsports disclosed that online sales of Nike products accounted for roughly 22% of total group revenue in the fiscal year ending February 28, 2026.
This means → if the rumor proves true, Topsports would lose more than a fifth of its revenue in one stroke — and this happens to be its strongest-growing segment right now.
In plain terms = online is the one leg Topsports is standing on most firmly, and the rumor is about cutting that leg off.
The denial is out — but is the risk actually gone?
In its filing, Topsports noted that Nike and the group have been discussing various aspects of business cooperation from time to time, including the status of online sales arrangements.
This means → the two sides are in ongoing talks about channel structure. "No formal notice received" is not the same as "no change coming."
This reflects a broader signal: the brand is reconsidering the distributor's channel role — even if this particular move hasn't landed, the directional pressure is already on the table.
How much pressure is Topsports' own business already under?
In Q1 of fiscal 2026/2027 (through end of May 2026), total retail and wholesale GMV fell 10% to low-20% year on year.
Directly operated store gross selling area shrank about 2.9% from the prior quarter — offline contraction continues.
The one bright spot: online channels still posted double-digit growth — and that is precisely the segment the rumor threatens.
Why might Nike want to pull online distribution back in-house?
Sportswear online pricing has been under sustained pressure in recent years: stacked discounts, platform subsidies, and distributor promotions have pushed some product prices steadily lower.
If Nike strengthens its direct-to-consumer and flagship store system, the core aim is tighter control over pricing, membership assets, and user data.
In plain terms = the brand thinks distributors have muddied its price architecture and wants to run the online shelf itself — squeezing the distributor's channel value in the process.
What is the worst-case scenario for Topsports?
Offline stores are shrinking and online authorization is uncertain — if both pressures hit at once, Topsports' position in the supply chain faces a real structural test.
This reflects a larger industry trend: brands globally are clawing back channel control, and the distributor model itself is being redefined.
Near term, the stock has already priced in the panic; medium term, how Topsports repositions its channel role is the question that actually needs answering.
Content is for reference only, not financial advice.