Li Ning lowers full-year revenue growth target to low single-digits

Summary

Li Ning has lowered its 2026 full-year revenue growth target to low-single digits, with net profit margins adjusted to mid-to-high single digits etnet. The revision follows a challenging Q2 where offline retail and wholesale channels both recorded low-to-mid single-digit declines and the store network contracted by 28 outlets .

Impact Analysis

So basically, Li Ning is finally admitting that its “premiumization” dream is hitting a brick wall. The move to lower revenue guidance to low-single digits isn’t just a cautious tweak; it’s a defensive pivot etnet. While management points to “weather” and “weak demand,” the real red flag is the inventory-to-sales ratio ballooning to 5x . They’re stuck in a “supply-strong, demand-weak” trap, forced to ramp up marketing spend just to keep the brand relevant while simultaneously discounting to clear shelves etnet.

The interesting part isn’t just the slowdown—it’s the divergence from peers. While 361 Degrees is finding a sweet spot in value, Li Ning’s core offline channels are bleeding, evidenced by the net closure of 28 stores in Q2 . I’d read this as a signal that the “Guochao” tailwind has officially died. Expect margins to remain under pressure as they prioritize liquidity over brand positioning. The market’s been pricing in a recovery, but this guidance suggests we haven’t found the floor yet.