Nike Will Adjust Its China Strategy After Orders For The Region Slow Down
Nike reported "a fall in new orders in China, and said it would revamp its strategy in the country as investor concern over its performance sent its shares down," according to Barney Jopson of the FINANCIAL TIMES. The company said on Thursday that new orders from its greater China region, including Taiwan and Hong Kong, were 5% below last year's level, "confirming a slowdown in a crucial market." Nike Brand President Charlie Denson said retailers in China are all "grappling with a combination of slowing economic growth, excess inventory, and more discerning consumers." Denson: "This is a natural evolution that we’ve seen in many markets, so it’s not a surprise. What is a surprise, like everything in China, is how fast it got here." Nike shares initially fell more than 4% after market trading, but later recovered slightly to be down 3.2% at $92.90 (FINANCIAL TIMES, 9/27).