Li Ning Faces Lower Earnings as Margins Remain Under Pressure -- Market Talk

Dow Jones

Jul 16, 2025

0418 GMT - Chinese sportswear company Li Ning's weaker-than-expected 2Q operational data has turned CGS International analysts bearish on the stock, as they cut their rating to hold from add. The analysts expect profit margins to remain under pressure in FY 2025, as the company had to offer more discounts in 2Q due to weaker consumer sentiment. The company says a higher distribution expense ratio from Olympics-related expenses may also affect earnings. "Li Ning needs some time to further adjust its product profile and improve its Olympics-related marketing investment," the analysts write in a note. CGS trims its FY 2025-FY 2027 EPS forecasts by 13.1%-16.5% and lowers its target price to HKS$17.30 from HK$22.40. Shares were last at HK$15.88. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

July 16, 2025 00:18 ET (04:18 GMT)

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The analysts expect profit margins to remain under pressure in FY 2025, as the company had to offer more discounts in 2Q due to weaker consumer sentiment. The company says a higher distribution expense ratio from Olympics-related expenses may also affect earnings. \"<a href=\"https://laohu8.com/S/LNNGY\">Li Ning</a> needs some time to further adjust its product profile and improve its Olympics-related marketing investment,\" the analysts write in a note. CGS trims its FY 2025-FY 2027 EPS forecasts by 13.1%-16.5% and lowers its target price to HKS$17.30 from HK$22.40. Shares were last at HK$15.88. (megan.cheah@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  July 16, 2025 00:18 ET (04:18 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Li Ning Faces Lower Earnings as Margins Remain Under Pressure -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nLi Ning Faces Lower Earnings as Margins Remain Under Pressure -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-07-16 12:18</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0418 GMT - Chinese sportswear company <a href=\"https://laohu8.com/S/LNNGF\">Li Ning</a>'s weaker-than-expected 2Q operational data has turned <a href=\"https://laohu8.com/S/06881\">CGS</a> International analysts bearish on the stock, as they cut their rating to hold from add. The analysts expect profit margins to remain under pressure in FY 2025, as the company had to offer more discounts in 2Q due to weaker consumer sentiment. The company says a higher distribution expense ratio from Olympics-related expenses may also affect earnings. \"<a href=\"https://laohu8.com/S/LNNGY\">Li Ning</a> needs some time to further adjust its product profile and improve its Olympics-related marketing investment,\" the analysts write in a note. CGS trims its FY 2025-FY 2027 EPS forecasts by 13.1%-16.5% and lowers its target price to HKS$17.30 from HK$22.40. Shares were last at HK$15.88. (megan.cheah@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  July 16, 2025 00:18 ET (04:18 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"02331","symbol_name":"李宁","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2551891114","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2551891114","pubTimestamp":1752639480,"columns":[{"name":"Data Report","id":30,"label_key":"dataReport"}],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0418 GMT - Chinese sportswear company Li Ning's weaker-than-expected 2Q operational data has turned CGS International analysts bearish on the stock, as they cut their rating to hold from add. The analysts expect profit margins to remain under pressure in FY 2025, as the company had to offer more discounts in 2Q due to weaker consumer sentiment. The company says a higher distribution expense ratio from Olympics-related expenses may also affect earnings. \"Li Ning needs some time to further adjust its product profile and improve its Olympics-related marketing investment,\" the analysts write in a note. CGS trims its FY 2025-FY 2027 EPS forecasts by 13.1%-16.5% and lowers its target price to HKS$17.30 from HK$22.40. Shares were last at HK$15.88. ","collect":0,"end_time":0,"defaultTopTitle":"","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"02331":"李宁"},"translate_title":"由于利润率仍面临压力，李宁面临盈利下降——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"02331":0.9},"content_text":"0418 GMT - Chinese sportswear company Li Ning's weaker-than-expected 2Q operational data has turned CGS International analysts bearish on the stock, as they cut their rating to hold from add. The analysts expect profit margins to remain under pressure in FY 2025, as the company had to offer more discounts in 2Q due to weaker consumer sentiment. The company says a higher distribution expense ratio from Olympics-related expenses may also affect earnings. \"Li Ning needs some time to further adjust its product profile and improve its Olympics-related marketing investment,\" the analysts write in a note. CGS trims its FY 2025-FY 2027 EPS forecasts by 13.1%-16.5% and lowers its target price to HKS$17.30 from HK$22.40. Shares were last at HK$15.88. (megan.cheah@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  July 16, 2025 00:18 ET (04:18 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}