Li Ning keeps growing
Chinese sports outfitter Li Ning has reported a 13% sales rise in the first six months of its 2016 fiscal year, reaching CNY3.59 billion (€478.6 million). Net income was CNY113 million, compared to a CNY29 million loss in the same period last year.
Li Ning generates the vast majority of its business on the domestic market, where it benefits from the Chinese government's policies in favour of sports activities. The group has also worked on restructuring its organisation and on cost reduction, managing to return to profitability in 2015, after three fiscal years in which losses were recorded.
As of the end of June, Li Ning was present in 6,169 stores. Between 300 and 500 more are expected to be added to the total by the end of the year. The Chinese group also operates a series of specialised stores, and has opened in Shanghai a first shop dedicated to running, the sport category with the highest growth rate for the brand.
Li Ning is notably focused on expanding the digital side of its business and online sales in particular, which currently account for 13% of the group's overall sales. Sales through multi-brand stores represent instead 51% of Li Ning's revenues, while 36% come from the group's directly owned stores.
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