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SBD/March 26, 2013/Finance
Li-Ning Reports Losses; Plans To Scale Back Inventory And Overhaul Image
Published March 26, 2013
FORGOTTEN MAN? REUTERS’ Kwok & Jourdan noted analysts have been left “puzzling the logic of splashing out on an expensive NBA superstar with no apparent U.S. retail strategy in place” after Li-Ning lured Heat G Dwyane Wade from Nike last year. Li-Ning is “paying top dollar for an elite athlete just as Nike and other established sportswear brands are scaling back on big-name endorsements because of disappointing returns.” Li-Ning also “raced to open hundreds of stores in the afterglow of the Beijing Olympics in 2008, but has been forced to retreat as sales have slumped.” DiGennaro Communications Account Exec Will DeGirolamo, whose firm reps Li-Ning Brand Initiative Dir Brian Cupps, said that there would be “more news soon on the Wade deal, including the U.S. launch of a new line of sneakers.” DeGirolamo said, "The sneakers will be available for the first time in the U.S. in early April." But Kwok & Jourdan noted not having shoes on the market now “means Li-Ning may be missing out on a golden opportunity,” as the Heat are on a run of 27 straight wins (REUTERS, 3/23).