Li Ning May Post Full-Year Loss

By Community | August 24, 2012

Chinese sportswear retailer Li Ning has warned it may post a full-year loss because of inventory overhang and slowing domestic economic growth.

The company’s shares fell 3.8 percent in Hong Kong on Thursday, compounding a 4.5 percent fall on Wednesday.

Investors appear to be losing patience faith in the company’s assurances it can revive its fortunes after a difficult two years.

Li Ning reported an 85 percent drop in first-half net profit to RMB 44.3M (US$7M)

One reason for the projected full-year loss is that spending on London 2012 will be booked primarily in the second half.

Shanghai-based China Market Research Founder, Shaun Rein, said: “Li Ning’s poor performance has more to do with its own strategic missteps rather than an overall slowdown of the Chinese market.” {jcomments on}