UBS has released a research report indicating that LI NING's brand recorded mid-single-digit year-on-year growth in retail sales for its adult product line, excluding LI NING YOUNG, during the first quarter. Overall retail sales increased by a high-single-digit percentage, aligning with the bank's expectations. Notably, LI NING YOUNG achieved over 20% growth year-on-year. The bank has assigned a "Buy" rating to LI NING with a target price of HK$28.6.

During the period, the adult product line saw mid-single-digit growth in offline channels and high-single-digit growth in online channels. The offline retail growth was primarily driven by double-digit increases in outlet sales. The data is consistent with full-year guidance and matches the performance of ANTA Sports during the same period.

UBS believes that Nike's strategic shift toward discounting and supply control will have positive implications for China's sporting goods industry. Additionally, management anticipates an acceleration in overall company sales during the second half of the year, citing a low base effect alongside new product launches and store expansion plans.

Regarding costs, management stated that expenses for this year have already been locked in, with potential impacts expected to emerge from the first quarter of next year. It is projected that footwear costs will be affected by 3 to 4 percentage points, while apparel costs, being less sensitive to oil prices, will experience a smaller impact.