Ever-Glory International sales fall 7pc
Total sales for branded fashion apparel retailer Ever-Glory International Group fell 7.3 per cent to $109.9 million year-on-year for its third quarter.
This decrease was primarily driven by a 13.2 per cent drop in its retail business to $41.1 million, plus a 3.4 per cent decrease in its wholesale business to $68.9 million. The company attributes the retail fall to a decrease in same-store sales.
The drop in wholesale trade was primarily because of a decrease in sales in China, Japan and the UK, partially offset by higher sales in Hong Kong, Europe, Germany and the US.
Total gross profit for the third quarter fell by 8.4 per cent to $29.6 million, while total gross margin eased from 27.3 to 26.9 per cent.
Gross profit for the retail business dropped by 12.9 per cent to $19.6 million for the quarter, with gross margin increasing from 47.5 to to 47.6 per cent.
Gross profit for the wholesale business rose by 1.6 per cent to $10.1 million, and gross margin increased to 14.6 from 13.9 per cent for the same period last year.
“Our two complementary segments, retail and wholesale, give us formidable competitive advantages in the market with deep insight into local fashion-buying behaviours and changing retail trends, and valuable experience and resources across every aspect of supply-chain management,” says Ever-Glory chairman/president/CEO Yiha Kang.
“For our retail business, we remain focussed on store network optimisation, inventory and operation management and branding.”
At the end of September the company had a network of 1345 stores in China, with 70 stores added during the quarter. It expects to have more than 1400 stores by year’s end.
“The global macroeconomic headwinds and weak consumer confidence continued to impact our wholesale business in the third quarter, however, we believe our extensive product development and supply-chain management expertise, as well as our network of reliable and cost-efficient sourcing channels and manufacturers will benefit the long-term foundation of our wholesale business,” says Kang.
Based in Nanjing, Ever-Glory offers women’s apparel in China under its own brands Idole, La Go Go, Sea to Sky and Velwin. It is also a global apparel supply chain provider with a focus on middle- to high-end casual wear, outerwear and sportswear brands.