Ge Long Hui·2025-10-27 13:09Core Viewpoint - Li Ning's Q3 2025 operational data shows a marginal decline in overall revenue, with e-commerce and children's apparel performing relatively better [1] Group 1: Financial Performance - In Q3 2025, Li Ning's total revenue (excluding Li Ning YOUNG) decreased by a mid-single-digit percentage year-on-year, with online e-commerce growing at a high single-digit percentage while offline sales declined at a high single-digit percentage [1] - The discount rate has deepened, with a slight increase in inventory turnover ratio due to early stocking, expected to return to 4-5 months by year-end [1] - As of the end of Q3, the inventory turnover ratio was 5-6 months, showing an increase both year-on-year and quarter-on-quarter, attributed to early stocking for the upcoming festivals [1] Group 2: Product Category Performance - Running and fitness categories continue to grow, achieving low single-digit growth driven by professional products, while basketball and lifestyle segments are under pressure, with basketball sales declining over 20% [2] - The outdoor category has seen good growth due to industry trends and new product launches, although its scale remains small [2] Group 3: Channel and Store Expansion - As of September 30, Li Ning had 6,132 sales points (excluding YOUNG), a net increase of 33 from the previous quarter, with a net increase of 15 sales points year-to-date [2] - The company plans to maintain its store opening strategy for the year, with a net closure of 10-20 direct sales stores and a net increase of 50 wholesale stores [2] Group 4: Future Outlook - The company maintains its 2025 performance guidance, expecting revenue to remain flat and net profit margin to be in the high single digits, despite facing some pressure [3] - Upcoming product launches, including the 2026 Winter Olympics gear and new technology platforms, are anticipated to enhance brand competitiveness and sales [3] - The company continues to focus on the sports sector, emphasizing product refinement and brand accumulation for steady growth [3]