Paris Olympics and the Decline in Sportswear Spending in China
Significant Challenges for Li Ning Amidst Paris Olympics
As the Paris Olympics draws nearer, Li Ning, China’s leading sportswear brand, is encountering major challenges related to spending decline, particularly across its offline stores. Their revenue growth remains stagnant despite a slight year-on-year increase of 2.3% to 14.3 billion yuan.
Contrasting Trends in Retail Performance
- Li Ning's offline turnover decreased by mid-single digits.
- Online sales witnessed a growing contribution, now representing 30% of total revenue, with footwear sales soaring by 25%.
- Despite economic hurdles, there is potential for enhanced brand perception during the Paris Olympics.
Qian Wei, co-CEO, emphasized that this period is crucial for brand development, stating, 'We expect significant challenges to turnover at our offline stores.' The group will concentrate on launching high-quality fitness products and enhancing connections with female consumers through fashionable offerings. Li Ning declared an interim dividend of 0.3775 yuan per share, marking a year-on-year increase in its payout ratio.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.