In another sign that the Chinese domestic economy continues to struggle, Li Ning Company, Ltd. reported that retail sell-through for the third quarter for Li-Ning POS, excluding Li-Ning Young, declined in the mid-single digits year over year.
In terms of channels, the offline channel, including retail and wholesale, posted a high-single-digit decline for the quarter, with retail (direct operation) declining in mid-single-digits and wholesale (franchised distributors) declining in high-single-digits. The e-commerce virtual stores business registered mid-single-digit growth for the period.
At quarter-end, the total number of Li-Ning POS, excluding Li-Ning Young, in China amounted to 6,281, representing a net increase of 42 POS since the end of the previous quarter and a net increase of 41 POS since the beginning of this year. Among the net increase of 41 POS, direct retail accounts for a net decrease of 14 POS, and wholesale accounts for a net increase of 55 POS.
As of September 30, the total number of Li-Ning Young POS in China amounted to 1,459, representing a net increase of 21 POS since the end of the previous quarter and a net increase of 31 POS since the beginning of this year.
Image courtesy Li Ning Company, Ltd.
