Yue Yuen raised its sales by 6. 8 percent to $5,936 million in the first nine months of this year, but its net profit for the period fell by 36.8 percent to $330.5 million. The world's largest shoe manufacturer managed to raise its operating profit before extraordinary items by 9.5 percent to $318.4 million, but extra charges led it to post an operating loss of $110.4 million.
The charges included $90 million worth of increased contributions to social insurance and housing funds for employees in China as well as losses of $18.8 million from changes in the fair value of financial derivatives. That compares with extraordinary profits of $38.8 million made in the same period a year ago.
The gross margin improved by 0.7 percentage points to 21.9 percent. Looking at the revenues, it was interesting to see that Yue Yuen raised the average selling prices of the shoes it sold during the period. While their volume dropped by 0.5 percent to 228.8 million pairs, revenues derived from their sale increased by 3.9 percent.
Retail sales went up by 14.3 percent to $1,456 million, representing 24.5 percent of the total turnover. Sales of soles, components and products other than finished footwear increased by 8.2 percent to $483.2 million.
When it comes to shoe manufacturing, casual and outdoor shoes continued to advance more rapidly than other categories. Their sales rose by 10.7 percent to €1,087.1 million. Sales of athletic footwear, which remained the largest category, were almost flat, rising by 1.4 percent to $2,848.5 million. Sports sandals generated 5.2 percent higher sales of $61.2 million.