Li Ning closes H1 into the red: 184 million yuan loss
By FashionUnited
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Apparel sales dropped 35 percent, while sales of footwear and accessories fell 23 percent and 21 percent, respectively, reported ‘China Daily’.
Li Ning's market share dropped to 5.4 percent last year from 8 percent in 2010, according to market-research firm Euromonitor International. Shares at the Chinese company remain flat for the year, far behind its competitors’, such as ANTA's stock, that is remounting.
Li Ning, backed by private equity firm TPG Capital, said the worst was behind it as it expects to start seeing returns from investments to help cut inventory, adding that its annual net loss will be less than last year's.
"For the full year of 2013, we expect the company's operating cash flow will continue to improve, along with our distributors' profitability," Li Ning said in a statement.
Li Ning reports 184 million yuan loss, yet better than expected
Despite closing into the red, Li Ning Co Ltd reported a smaller-than-expected loss in the first half and said inventory levels had returned to close to normal levels, fuelling hopes that the stressed industry is finally on the mend, according to data collated by Reuters.The company has had 6,024 stores as of June 30, 2013, according to the Hong Kong-listed company, noting that self-operated stores made up 31 percent of its total revenue and same-store sales of such stores advanced 9 percent.
Li Ning has 1.6 billion yuan cash at the moment and no plans to refinance or buy global brands in the near term, said commenting the news for ‘China Daily’ Li Ning, chairman and founder of the company.
The sportswear maker initiated a new marketing model at the start of this year, turning to retail-oriented sales, with over 90 percent of its partners took part in the sales channel revival plan.