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<Research>UBS Finds LI NING (02331.HK)'s 1Q SSS Growth Weaker Than Expected
Recommend 6 Positive 8 Negative 11 |
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UBS noted in a report that LI NING (02331.HK)'s overall retail sales performance was broadly in line with expectations, but same-store sales (SSS) growth was weaker than the broker's forecast, with wholesale SSS growth dropping by about 15%, while direct retail SSS growth recorded a double-digit decline. UBS believed the pressure on offline SSS may have a negative impact on direct channel margins and distributor confidence. The broker is therefore cautious on LI NING's offline SSS pressure and growth strategies. UBS gave LI NING a target price of $23 and maintained its Neutral rating. UBS also cited that LI NING management maintained its guidance for mid-single-digit YoY retail sales growth, mainly driven by the company's narrower discounts and potential traffic recovery in 2H24, which resulted in net margins remaining in the lower teens. AAStocks Financial News |
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