Chinese sportswear brand Li Ning to focus on de-inventory (China)

Li Ning, a leading sportswear brand from China, has announced that it will continue to focus on de-inventory this year.

 

Analyzing the current situation, the company does not want to take risk of increasing its stocks at its retail end. However, the speed of de-inventory may be lower than originally decided, according to Li Ning.

 

Li Ning said its apparel product orders for 2012 have declined by more than 20 percent year-on-year and the total order amount is likely to decline by over 10 percent at the end of the year. This, coupled with other factors like significant hike in marketing expenses during the next few years, would lead to a substantial decline in its net profit this year.

 

Last year, Li Ning’s net profit dipped by 65.2 percent and its net sales dropped by 5.8 percent to 8.929 billion Yuan.

 

At present, Li Ning has 129 dealers and more than 2000 distributors in its retail channel.