Li Ning's H1 profit rises 67%, beat forecasts

World
Europe

Li Ning, the Chinese sportswear company founded by the eponymous former Olympic gymnast, reported a 67-percent jump in its half-year net profit, its fourth such rise in a row.

The brand reported a net profit of 189.2 million yuan (28.47 million US dollars) in the period from January to June, beating analysts' forecasts by 13 percent, and also higher than the 113.4 million yuan profit reported from a year ago.

The rise was boosted by strong online sales, tight inventory controls, and outlets upgrades.

Founder Li Ning, a former Olympic gymnast, at the opening ceremony of the 2008 Beijing Summer Olympics. /Xinhua Photo

The company's total revenue increased 11 percent to 3.996 billion yuan in the first half.

The number of Li Ning-brand outlets or sales counters however decreased to help reduce inventory fees. The stores and sales counters in China amounted to 6,329 as of the end of June, a net decrease of 111 from the end of last year.

The company said it would continue to open or revamp key experience stores and strategically close down inefficient ones. Li Ning also said it will increase investment in reformation of digital operation.

A Li Ning store /Chinanews Photo

"With the support of national policies and the constant increase in public awareness towards their own health, the robust development of sports market demands brings about new opportunities to the current and future sporting goods industry," Executive Chairman Li Ning said in a statement.

Founded in 1989, Li Ning is China’s largest home-grown sportswear brand by sales.

Sports apparel firms in the mainland have predicted a boost in business as the country looks to build its sports industry and consumers become increasingly health conscious.

Source(s): Reuters