Li Ning issues profit warning
In the midst of implementing its "Transformation Plan”, aimed in particular at strengthening its distribution network and optimizing its operating costs, Li Ning has issued a profit warning.
For the second half of its 2014 fiscal year ending on December 31, the Chinese sporting goods company expects a net loss of 111 million euros (820 million yuan), as compared with 80 million euros in the first half. The poor results were in part due to investments made as part of its Transformation Plan, which was initiated in 2012.
The company, however, indicates that during a large portion of its second semester (five months from July to November), its turnover is expected to jump by 20% as compared with 8% in the first quarter, to 381 million euros (3.137 billion yuan).
Li Ning will release its results for the 2014 as a whole in March.
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