Sportswear maker Li Ning forecasts substantial loss

Chinese sportswear retailer Li Ning (2331.HKG, LNLB.FRA) has predicted a “substantial” full-year loss on costs arising from measures taken to revive sales, Bloomberg reported. The company, set up by former Olympic gymnast Li Ning, plans to reduce the surplus of inventory, bring fresh products into shops and upgrade the distribution network, which will cost between US$224 million (RMB1.4 billion) and US$288.3 million, according to a statement released Monday. The company did not provide an estimate for its full-year loss, although analysts polled by Bloomberg predicted a median estimate of US$19.35 million. Li Ning’s share price fell 3.9% to HK$4.70 at the close of Hong Kong trading on Friday. The company has been suffering from a decline in sales, with profits in January through June falling 85% amid stiff competition and rising costs.