Chinese sportswear brand Li-Ning announced its annual financial results for 2020, noting a revenue increase of 4.2 percent year-on-year to 14.4 billion RMB ($2.2 billion USD).
In its announcement on Friday, the company said that despite the challenges brought on by the coronavirus pandemic, it remained profitable, reporting a net profit rise of 13.3 percent. Still, the company noted that the impact of COVID-19 led to a “very challenging retail environment during most of the year.”
The company saw a 9.7 percent drop in sales revenue from its directly-operated brick and mortar locations, though it says it saw a recovery in sales from its physical locations in the second half of the year as COVID-19 restrictions were eased.
The retailer said that its investments in e-commerce yielded “promising returns, which significantly outperformed the offline channel.”
“During the COVID-19 pandemic, the Group has stepped up the efforts in transforming offline traffic to online channels and improving the efficiency of online channels, contributing to a growth in revenue of 29.9 percent from the e-commerce channel.”
Despite successes, the company noted that its overall sales revenue “failed to meet the expected target as a result of this special public health emergency.”
The company has made some recent strides, including announcing a release date for its inaugural footwear and apparel collection from its collaboration with Soulland and the drop of its “Too Young To Stay” collection in January, which highlighted its Sichuan roots.
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