Li-Ning grew in 2022, despite macro challenges
Chinese sports brand Li-Ning has reported that its revenue for the year ended December 31, 2022, increased by 14.3% year on year to reach $3.75 billion or ¥25.8 billion.
The company said macroeconomic challenges such as recurring waves of covid-19 and a significant rise in raw material prices had led it to experience difficulties in the operating environment, but doubled down on its “single brand, multi[ple] categories, diversified channels” strategy.
Retail sell-through was dominated by sports casual articles, which took a 39% share of the total, it added. Basketball (29%) came in second, with running (19%) and fitness (12%) coming in third and fourth. Categories grouped under “other” contributed the remaining 1%.
Sales of basketball and running articles respectively grew by 25% and 13% on the previous year.
Across the board, footwear sales accounted for just over half of Li-Ning’s sales for the 12 months, followed closely by apparel, with equipment and accessories amounting to approximately 6%.
The brand notably reduced its number of footwear suppliers by five over the period, however, but did gain an additional apparel production partner. Compared to figures for 2021, the business’ inventory levels over the 12-month period swelled by a percentage in the “high thirties”, it noted.
