Pou Sheng's June revenue fell 9% year-on-year, and Nike and Adidas continue to be under pressure in China (Bernstein)
The Bernstein report pointed out that as the main retailer of Nike and Adidas in China, Pou Sheng International's revenue in June fell by 9% year-on-year (month-on-month deterioration, -7% in May).
The Bernstein report pointed out that as the main retailer of Nike and Adidas in China, Pou Sheng International's revenue in June fell by 9% year-on-year (month-on-month deterioration, -7% in May). Its three-month average decline also reached -9%. This shows that the end demand of Nike and Adidas in the Chinese market is still weak, and the monthly revenue of Yue Yuen's manufacturing business also fell by 11.8% year-on-year in June, further confirming the deterioration of orders throughout the supply chain. The market had previously expected that the sports shoes and apparel market might pick up in 2H26, but current data shows that the recovery process is far away, and the industry's cold winter is still continuing. One-sentence conclusion: The demand for Nike and Adidas in China has not bottomed out. Weak data from supply chain companies such as Pousheng International and Yue Yuen reveal the severe challenges facing the sportswear industry, and investors need to remain vigilant. Positive/negative: negative for Baosheng International (3813.HK), Yue Yuen (0551.HK), Nike (NKE.US), Adidas (ADS.DE). The market’s optimistic expectations for recovery in the second half of the year are at risk of being revised down. Catalysts: 1) Monthly sales data for July and August to confirm whether a bottom has been reached; 2) Outlook for Greater China in upcoming financial reports from Nike and Adidas; 3) Overall retail consumption data in China.