FAST NEWS: Li Ning’s e-commerce sales drop sharply in first quarter
The latest: Sportwear retailer Li Ning Co. Ltd. (2331.HK) announced Thursday its retail sales, excluding the Li Ning Young sub-line, recorded mid-single-digit year-on-year growth in the first quarter.
Looking up: Li Ning’s offline channels, including retail and wholesale, recorded high single-digit growth, with its direct retail operation recording mid-teens growth.
Take Note: The company’s same-store sales for both retail and wholesale recorded low single-digit declines, while same-store sales for its online channels plunged 20% to 30%.
Digging Deeper: Founded in 1990 by Olympic gold medal gymnast Li Ning and listed on the Hong Kong Stock Exchange in 2004, Li Ning Co. has expanded over the years to become the largest sports goods chain in China, behind Anta (2020.HK). China’s broader retail sector has largely bounced back from the shadow of the pandemic with the end of the nation’s harsh controls last December. Still, Li Ning’s overall sales growth in the first quarter lagged the double-digit gains for peers 361 Degrees (1361.HK), Xtep (1368.HK) and some of Anta’s brands.
Market Reaction: Li Ning’s shares rose on Friday, closing up 3.2% at HK$59.25 by the midday break. The stock now trades in the middle of its 52-week range.
Translation by Jony Ho
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