Li Ning H1 2026 slides: margin gains offset by weak demand, cut outlook

Li Ning's interim results for H1 2026 revealed a mixed performance, with modest revenue growth offset by weak demand and a cut in full-year revenue outlook. Despite a 2.8% year-over-year increase in revenue, net profit margin improved slightly to 11.9%. Gross margins expanded to 50.9%, driven by cost optimization across channels.

However, footwear revenue remained stagnant at 1% growth, while apparel showed strength with 12% year-over-year growth. Cash generation fell significantly, with net operating cash inflow dropping 60.4% to RMB 954 million. The company acknowledged operational challenges in the offline retail environment, with declining store footfall and increased promotional pressure.

Li Ning highlighted its strategic investments in brand building and product innovation to support long-term value creation, despite the challenging market conditions.