First-half revenues plummet but Li Ning says has - sportstextiles: Lea SportsTextiles

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First-half revenues plummet but Li Ning says has it has 'turned the corner’

12/08/2013
Li Ning, one of the leading sports brands in China, has reported revenues fell by a quarter in the first half of the year but feels it has “turned a corner”.

Profits were RMB1,266.4 million ($206 million), representing a year-on-year decline of 24%.

The company launched a three-year restructuring plan late last year that includes steps to scale back its inventory and close stores.

Jin-Goon Kim, executive vice-chairman, said: "We have achieved what we set out for the first phase of the transformation pPlan and believe the company has turned the corner, underpinned by meaningful improvements in many aspects of our operations. I'm pleased to say that we believe the worst is behind us."

Mr Li Ning, founder and executive chairman, added: "China's sports industry faces challenges including the hangover from over-expansion, competition from casual wear and the need to meet the more sophisticated consumer tastes of rising China. The market is currently choked with undifferentiated local brand products. As a leading sportswear brand with unique sportsmanship heritage, we think that taking a bold and differentiated strategy is the winning plan.”

As of the end of June 2013, the group had 6,024 stores.


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