FAST NEWS: Li Ning’s e-commerce sales jump in first quarter
The Latest: Sportwear retailer Li Ning Co. Ltd. (2331.HK) announced Monday its retail sales, excluding the Li Ning Young sub-line, recorded low-single-digit year-on-year growth in the first quarter.
Looking Up: The company’s e-commerce virtual stores business grew by a low-20s percentage amount during the quarter, while same-store sales for that part of its business also grew by a similar amount.
Take Note: The company recorded a low single-digit decline in sales for its offline channels during the quarter, with mid-single-digit growth for the retail channel but a mid-single-digit decline for the wholesale channel.
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 one of the largest sportswear chains in China, behind Anta (2020.HK). At the end of 2023, the company announced its acquisition of a 22-story commercial building in Hong Kong’s North Point district for HK$2.21 billion ($363 million), a move that aroused skepticism due to the downturn in Hong Kong’s property market, which weighed on the company’s stock for a period afterwards.
Market Reaction: Li Ning’s shares rose on Tuesday, closing up 5% at HK$18.38 by the midday break. The stock now trades near the lower end of its 52-week range.
Translation by A. Au
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