Sportswear retailer Topsports International Holdings Ltd. (6110.HK) announced on Wednesday that it was formally notified by Nike after market close on Tuesday that it will no longer be authorized to make online sales of Nike products in Mainland China from Jan. 1, 2027.
The business accounted for about 22% of Topsports’ total revenue in its financial year through February, and it said the termination is expected to have a material impact on its business in the near term.
Reports emerged in mid-June that Nike planned to revoke Topsports’ online distribution authorization, sending the retailer’s shares sharply lower over several sessions and prompting a brief trading suspension. Topsports said at the time that it had not been notified of any such move by Nike, but stopped short of denying the reports.
Following the announcement, Topsports shares opened lower on Wednesday and were trading at HK$1.45 by the midday break, down 24.1%. The stock has fallen 42.23% over the past month.
By Lee Shih Ta
To subscribe to Bamboo Works weekly free newsletter, click here
Related Articles
RELATED ARTICLES
-
A tale of two markets: DSC’s disastrous Nasdaq debut, and Nike’s distribution dilemma
DSC.US - Topsport sales sag in latest fiscal quarter, as its shares tumble on Nike reports
- Sa Sa spruces up sales but will it be just a cosmetic lift?
-
Xtep races ahead on Southeast Asia running craze
1368.HK
- BRIEF: PDD revenue rises 11% as transaction services overtakes online marketing
- Jiumaojiu’s Tai Er chain builds momentum after major brand refresh
- Webull charges into high-velocity trading as U.S. removes longstanding restriction
