Li Ning Shares Jump on Upgraded 2025 Revenue Outlook

Li Ning Stock Gains on Positive Forecast

Li Ning's shares listed in Hong Kong closed 4.4% higher following the sportswear company's announcement of an updated and more positive financial guidance for the year 2025. The revised outlook has spurred investor confidence in the brand's future performance.

Revised Guidance and Sales Overview

The company now anticipates a mild increase in revenue for 2025, a significant improvement from its previous forecast of flat growth. Additionally, Li Ning expects its net profit margin to reach the high end of the high-single-digit percentage range. This contrasts with recent performance, as fourth-quarter retail sales saw a low-single-digit percentage decline. While online sales remained flat, performance varied across platforms, with Douyin showing double-digit growth but Tmall sales decreasing.

Impact on Market Expectations

This upgraded guidance implies a high-single-digit percentage upward revision for Li Ning’s 2025 consensus net profit estimates. The positive long-term forecast appears to outweigh the mixed results from the previous quarter and a slow start to January, where sales have been below expectations and required deeper discounts year-over-year.

Summary and Outlook

While the improved 2025 forecast has provided a significant boost to Li Ning's stock, the company still faces immediate sales challenges. Investors will be watching closely to see if strategic promotions can stimulate demand and align near-term results with the optimistic long-term financial targets.

FAQ

Q: Why did Li Ning's stock price increase?
A: The stock rose 4.4% after the company announced an improved revenue and profit margin outlook for 2025, upgrading its previous flat guidance.

Q: How did Li Ning's different sales channels perform in the last quarter?
A: The wholesale business declined by a mid-single-digit percentage, retail dropped by a low-single-digit percentage, and overall online sales were flat year-over-year.

Source: Investing.com