Li Ning'S Latest Performance: Stock Price Rises Sharply And Online Income Increases

According to the latest news, China's famous sports brand Li Ning recently released its performance report for the first half of 2020. According to the report, as of June 30, Li Ning's income decreased by about 1.2% to 6.181 billion yuan, and its net profit decreased by 14% to 683 million yuan.

In terms of gross profit, the group's gross profit decreased by 65% to 65.0%. In response, the group said that affected by the epidemic situation, most of the direct stores were established in high-level cities, and the impact of the decline in traffic on these cities was more serious, so the sales of offline retail terminals were greatly impacted, and the sales revenue of direct operation recorded a decrease of about 24%.

According to product categories, in the first half of 2020, Li Ning's footwear revenue reached 2.925 billion yuan, with a year-on-year increase of 0.1%, accounting for 47.3% of the total revenue; and the revenue of clothing category was 2.941 billion yuan, a year-on-year decrease of 3.9%, accounting for 47.6% of the total revenue. By region, Li Ning's revenue in China market accounted for 98.9% of the total revenue in the first half of 2020.

Although the online revenue is not satisfactory, the company, like other companies, has achieved good results and better than expected. It is understood that the company's online revenue increased by 23%.

In addition, on August 14, Li Ning's share price reached a record high, up 10% to HK $32.3 per share. By midday, it was up 8.25% to close at HK $31.5 per share.

Li Ning, the company's founder and executive chairman, said that in the face of the epidemic, people's outdoor movement was greatly restricted, and the performance of functional and professional products was greatly affected. Although there is still great uncertainty in the current epidemic situation and there is a certain pressure on the company's channel recovery, he still maintains confidence in the future operation.

And the good online performance feedback has given the company great confidence. It said that it will fully open up the online and offline, and the sustainable development of e-commerce business will be its future development goal. The company will centralize the channels scattered in various departments and categories to the e-commerce business system, and improve the operation efficiency of e-commerce by realizing the management modes of commodity, price and channel.

In addition, it also said that in order to cope with the impact of the epidemic, measures such as cost control and expenses control have been taken to seize the follow-up sales rebound trend under better control of the current domestic epidemic situation, and will continue to create Chinese element products to reduce the loss of revenue caused by the epidemic to all channels.

In fact, the focus of Li Ning's brand will gradually shift to the domestic market.