Japan retailing sector: Results at overseas retailers — Nike: 27/5 Q1 (Jun–Aug) — Nike's supply curbs may benefit Asics, but competition between the two companies expected to persist

Nomura published a Japan retailing sector report commenting on overseas retailer Nike's FY27/5 Q1 (Jun-Aug) results. Nike's Q1 sales fell 4% y-y (down 5% in forex-neutral terms) to $11.21bn, below the Bloomberg consensus forecast of $11.79bn. The company expects a high-single-digit sales decline in FY27/5 and said sales will continue to face downward pressure through FY28/5 as it scales back Nike Sportswear Dunk sales, reduces the volume and frequency of specific Jordan retro launches, and streamlines e-commerce channels in Greater China. We think Nike's supply curbs could provide a tailwind for Asics' [7936] (Buy) SportStyle shoes by creating more wholesale opportunities, but given that Nike's running and running-inspired lifestyle shoe sales are still growing, this may not be an unequivocal tailwind for Asics, and competition between the two companies is expected to persist.