Operating profit (Ebit) at Li Ning Company increased 4.1 percent to 2,643 million yuan renminbi (€375.3m) for the six months ended June 30 as total revenues rose 21.7 percent to RMB 12,409 million (€1.76b). The six-month gross margin slipped to 50.0 percent from 55.9 percent. The H1 net profit attributable to shareholders improved 11.6 percent to RMB 2,189 million (€310.8m) from RMB 1,962 million.
By product category, footwear sales rose by 47 percent to RMB 6,758.8 million (€959.8m); apparel revenues slipped 3.1 percent to RMB 4,906.6 million (€696.7m); and equipment/accessories revenues increased by 37 percent to RMB 743.2 million (€105.5m). Sales in mainland China increased 21 percent for the period to RMB 12,222.5 million (€1.74b), as all sales outside China increased 53 percent to RMB 186.2 million (€26.4m). Sports casual (39%) dominated merchandise sell-throughs during the period. Basketball sales bounced 30 percent higher to account for 28 percent of all H1 revenues. Sales of running products raced ahead 10 percent to account for 20 percent of all period sales.
During H1, the group realized year-over-year upticks in retail (23% vs. 21%) and e-commerce (30% vs. 29%) sales as a percentage of total revenues. Wholesale as a percentage declined to 47 percent from 50 percent in Q2/21. For a third consecutive comparable period, sales of aged products declined. While current and prior season products made up 91 percent of H1 revenues, old merchandise equaled 9 percent of all revenues against 12 percent in H2/21 and 15 percent in H1/21.
