Hong Kong-listed Chinese sportswear brand Li-Ning has released the vaguest operational update of the year – but nevertheless, it’s clear the brand is still growing.
A year after seemingly being down for the count, Li-Ning revealed a first half year profit in August, proving its massive transformational program was have a positive effect.
Now the company has released information on orders from its franchised distributors at its September trade fair, where it unveiled its range for distribution in the second quarter of 2016. For the eighth consecutive quarter, orders increased.
“The orders from the latest trade fair… registered high-teens growth on a year-on-year basis. This growth is driven by mid-teens increase in footwear as well as low-twenties increase in apparel.”
Meanwhile, same-store sales for Li-Ning-branded stores in the quarter to September 30
increased by “mid-single-digits” year on year.
“In terms of channels, growth rates of retail (direct operation) and wholesale (franchised distributors) were mid-single-digit and low-single-digit on a year-on-year basis respectively. Comparable growth on our eCommerce virtual stores more than doubled on a year-on-year basis. We have started reporting the eCommerce revenue growth as it is an increasingly important channel.”
At the end of last month there were 5953 Li-Ning branded points of sale in China, a net increase of 327 since January 1, and 208 more than at the end of the previous quarter.
