Li-Ning Reports Solid First Half; Inks 76ers Guard Turner

Chinese sporting goods giant Li-Ning Group Limited saw strength in footwear, apparel and accessories drive consolidated sales 11.2% for the six months ended June 30, a promising first half for a company hoping to establish itself as a force in the United States. Li-Ning, which recently established a U.S. headquarters and opened a store in Portland, OR, reported sales improved to RMB4,504.6 million (US $667 mm) from RMB4,051.9 million ($593.5 mm) in the year-ago period.

During the first half, the Group's core Li-Ning brand generated revenue of RMB4,133 million ($608 mm), which accounted for 91.8% of the Group's total revenue, representing an increase of 10.6% as compared to the corresponding period last year. Sales of Li-Ning brand footwear, apparel and accessories grew by 7.4%, 12.3% and 22.6% respectively. Earnings per share increased by 22.1% to RMB55.58 cents (US 6 cents) from RMB 45.53 cents (US 7 cents) in the year-ago period.

Regarding other labels, Li Ning’s Lotto brand recorded sales revenue of RMB47.3 million ($70 mm), up 206.7% versus the year-ago period. Revenue from Double Happiness grew by 7.8% to RMB236.2 million ($35 mm). Total revenue generated by AIGLE, Z-DO and Kason brands aggregated RMB87.2 million ($13 mm), an increase of 8.3% as compared to the corresponding period of last year.

As part of its branding efforts, Li-Ning said it continued to boost its sponsorship activity during the period, including its first ever sponsorship of a European football (soccer)   team – Espanyol, a team in Spain La Primera. It also sponsored top Norwegian javelin thrower, Andreas Thorkildsen.

The group said it will continue to beef up its portfolio of sponsorship resources by signing  more athletes, especially in basketball as well as track and field categories.

In related news, Li-Ning has signed Philadelphia 76ers guard Evan Turner to a multiyear contract. Turner, who starred at Ohio State University and was second overall in the 2010 NBA draft, will reportedly have his own branded sneaker and apparel in the second year of his deal.