Nike warned sales will fall for the full year after China sales dropped sharply, sending its stock down hard after hours — bad news for Nike and worse for Taiwan's Feng Tay, which depends on Nike for most of its business.

• Nike's quarterly sales missed expectations, dragged down by a 22% drop in Greater China and weak demand for its casual sneakers.
• Nike now expects full-year sales to fall by a high single-digit percentage, and the stock sank almost 9% after hours.
• Shoemaker Feng Tay gets 80–90% of its sales from Nike and faces heavy order cuts as Nike slashes the number of shoe styles it makes and clears out inventory.
• Clothing maker Eclat is far safer — Nike is only about 15% of its sales, and Nike's apparel business is still growing.
• The broader Taiwan market is going the other way: Nvidia's record run and fading rate-hike fears have Taiwan stocks closing in on the 50,000 milestone, with TSMC's earnings call on 15 October the next big test.

Outlook: Nike's clean-up phase will squeeze Feng Tay's orders for several quarters, even as Taiwan's AI-driven stocks keep climbing.