Chinese sportswear brand Li Ning reported financial earnings last week, marking a 65% increase in year-over-year revenue to $1.57 billion for the first six months of the year. Profits rose 187%.
The numbers put the company one step closer to attaining its goal of expanding from a domestic brand to “an internationally recognized top-class” brand, according to chairman and joint CEO Li Ning.
Despite Better Cotton Initiative’s crackdown on the textile industry in China, the country’s sportswear brands continue to post better-than-expected numbers.
- Anta Sports Products, which sells its own products along with brands like Fila and Descente, said in July it expects sales to increase by 55% in the first six months of the year.
- Athletic apparel company 361 Degrees forecasts a 30% increase in year-over-year earnings.
Li Ning expects to capitalize on the growth of sports in its home country, too.
China released a five-year plan on Aug. 3 to grow the country’s sports industry to $772 billion by 2025, adding fitness facilities and cultivating a modern sports industrial system. Chinese homegrown brands had an annual growth rate of 41.6% in the first six months of the year, according to iiMedia Research.
German sportswear adidas saw second-quarter revenue fall 16% in the same region, with Nike missing analyst expectations of $2.25 billion in greater China at just $1.93 billion.