Li Ning’s first-half profit rises 67pc to US$28.4m, beating forecasts
Sportswear company founded by China’s former Olympic gymnast aims to close more than 200 stores by the end of the year
Net income rose to 189.2 million yuan (US$28.4 million), or 0.793 yuan per share, in the first six months, helped by an 11 per cent increase in sales to 3.996 billion yuan. The Beijing-based company didn’t declare an interim dividend.
The interim net profit beat analysts’ forecasts by 13 per cent, and is further evidence that Li Ning has managed to put its years of losses firmly behind it, helped by a turnaround programme where it slashed inventory, shuttered unprofitable sites and upgraded its factory outlets.
Gross profit margin improved one percentage point to 47.7 per cent during the period, the company said.
As at 30 June 2017, the number of stores under Li Ning brand has dropped 111 in number, to a total of 6,329 compared with last December.
