Ever-Glory’s retail sales slip, but wholesale volumes grow
Chinese fashion apparel firm Ever-Glory International posted sales of US$88 million in the first quarter.
The result represented a decrease of 5.2 per cent from $92.8 million in the first quarter last year. The decrease was primarily driven by an 11.4 per cent decrease in the firm’s retail business, partially offset by an 11.3 per cent increase in wholesale.
The falling retail sales contributed to a $500,000 loss for the period, compared with an $800,000 profit in the same quarter last year.
The company had 1315 retail stores as of March 31, compared with 1409 at the same time last year.
“The first quarter results, coupled with our ability to increase operating leverage, resulted in expanded wholesale operating income during this quarter,” said the firm’s CFO Jason Jiansong Wang. “Going forward, we remain confident in the long-term prospects of our business and we will continue implementing our margin enhancement and cost control measures to further strengthen the profitability of our business.”
Ever-Glory’s gross profit for the quarter decreased by 6.3 per cent to $29.4 million, compared with $31.3 million for the same period last year.
“During the first quarter, we maintained our focus on developing the retail business through our multi-brand strategy and store network optimisation initiative,” said Ever-Glory chairman, president and CEO Yihua Kang, “while improving our wholesale business by upgrading customer portfolio and enhancing our account receivables. Notably, we achieved year-over-year improvement in gross profit of 13 per cent for our wholesale business.”
Ever-Glory International Group sells women’s apparel in China under its own brands La Go Go, Velwin, Sea To Sky and Idole and is also a leading global apparel supply chain solution provider with a focus on middle-to-high end casual wear, outerwear, and sportswear brands.