Topsports Shares Extend Rout After Nike Ends China Online Sales Pact

Shares of Topsports International Holdings Ltd. (6110.HK) fell sharply for a second consecutive session, extending a rout triggered by Nike Inc.'s decision to terminate its online sales partnership with the distributor in mainland China.

Nike Terminates Key Online Agreement

Topsports, Nike’s largest distributor in China, disclosed in an exchange filing on July 22, 2026, that it had been formally notified by Nike of the termination. The change, which will end all online sales of Nike products through Topsports, is set to take effect on January 1, 2027.

The financial implications for Topsports are substantial. According to the company, sales from the Nike online channel contributed approximately 22% of its total revenue in the fiscal year ended February 28, 2026. The company's board acknowledged the move would have a "significant short-term negative impact on operations" and advised shareholders to exercise caution. The two companies will continue to cooperate on offline retail sales.

Severe Market Reaction

Ad

Investor reaction to the news has been severe. Topsports stock slid 6.9% on Tuesday to close at HK$1.35, after a near-25% collapse in the prior session. The two-day sell-off has pushed the stock to its lowest point since its 2019 public listing, touching an intraday 52-week low of HK$1.33.

Compounding Headwinds

The termination comes at a challenging time for both companies. Nike's decision is part of a broader strategic shift to consolidate its digital presence and regain pricing control as it contends with its own deteriorating performance in the region, where its Greater China revenue has declined for seven straight quarters.

For Topsports, the loss of a major revenue stream compounds pre-existing weakness. The company had already reported a low-teens percentage sales decline in its most recent fiscal quarter and has been shrinking its network of directly operated stores. A soft broader market, with the Hang Seng Index also declining, provided no support for the stock.