Shares of TOPSPORTS (06110) have declined by over 5% in today's session, bringing the stock's losses for the month to nearly 20%. As of writing, the stock is down 5% to HK$2.28, with a trading volume of HK$42.98 million.

This latest drop follows industry reports indicating that Nike intends to completely revoke the online distribution authorizations for its top-tier domestic distributors starting January 1, 2027. Under this plan, distributors would be prohibited from selling Nike-branded products on e-commerce platforms. The only remaining online sales channel for consumers would be Nike's official flagship stores.

Major domestic distributors, including TOPSPORTS, are reportedly aware of this impending change. Their existing online storefronts and live-streaming commerce operations are expected to be completely phased out as a result. Sources indicate that Nike has already conducted one-on-one meetings with its key primary channel partners to communicate the adjustment plan.

According to a financial report from TOPSPORTS, a primary distributor for Nike, the company's total revenue for the 2025/26 fiscal year was RMB 25.74 billion. Sales from Nike and Adidas products together accounted for 86.7% of this total. Direct retail operations contributed 87% of the company's overall revenue.

While TOPSPORTS did not disclose the proportion of its direct retail business that came from online channels for the 2025/26 fiscal year, data from the 2024/25 fiscal year showed that online sales contributed approximately 30% to 40% of its direct retail revenue.