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Li Ning loss worse than expected

15/08/2014
Li Ning loss worse than expected
Chinese sports brand Li Ning warned shareholders at the end of July to expect a loss of, possibly, as much as $90 million, when it reported its figures for the first half of the year. When the figures came out on August 15, the company’s loss was reported as being even higher, at almost $100 million for the six-month period.

In the July statement, Li Ning attributed the loss to up-front expenses it has incurred in setting up a “transformation plan”. This is broadly based on moving from being a wholesale-led business to being a retail-led one “to meet the demands of the increasingly sophisticated consumers in China”, but has involved major infrastructure investments, including the construction of the brand’s own rail network.

Revenues in the first half of 2014 rose by 8% to reach $510 million.

Founder, former Olympic athlete Li Ning, said the first half of the company’s turnaround is now complete and that the company now plans to boost its brand image.



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