Nomura Says Li Ning Sales Growth Slowed In Second Quarter And Third Quarter

Nomura said an industry expert in mainland sportswear estimated Li Ning's sales rose in the mid-single digits year on year in the second quarter, slower than in the first quarter, and that the slowdown continued into the third quarter, according to ETNet. The expert said Li Ning's sales growth in July and August fell by about 1 percentage point from the previous quarter and came in below an earlier forecast for mid- to high-single-digit growth. The expert saw only a very slight improvement in early September. The expert expects Li Ning's sales in its distribution channels to rise by mid-single digits in the second half, led by its running line. Nomura said the running category remains Li Ning's most important sales driver, while basketball sales declines have narrowed. Nomura kept a HK$13.8 target price and a Neutral rating on Li Ning. It also preferred Anta Sports, with a HK$91.4 target price and a Buy rating, citing its outdoor and emerging sports businesses and multi-brand strategy.