Li Ning’s shares dropped 20% after reporting disappointing Q3 sales and reducing full-year revenue guidance. This is not indicative of the entire industry’s health, but rather specific to Li Ning, which appears to be grappling with high inventory levels and dwindling nationalist buying fervor. Despite the more attractive pricing, Li Ning faces stiff competition and pressure on the midrange segment. Preferred China sportswear picks are Anta Sports and Shenzhou International.
Li Ning Earnings: Selloff Following Disappointing Guidance; Fair Value Estimate Cut 15% to HKD 37.50
