In the 1st half of its financial year, which ended March 31, Yue Yuen registered a rise in sales of 16.5 percent to $1.72 billion. The company’s core manufacturing operation coupled with increased wholesale and retail sales to mainland China were said to be the main revenue drivers in the period. Higher raw material costs caused the gross margin to slide by 80 basis points to 23.4 percent of sales. Net profit grew by 15 percent to $168.3 million, although the increase was 8 percent when excluding a $10.2 million one-time gain stemming from new accounting standards.
Sales to Europe climbed by 12.2 percent to $448.3 million in the 6-month period. Elsewhere, turnover rose by 9.0 percent to $648.7 million in the USA, by 29.1 percent to $502.9 million in Asia, by 31.3 percent to $34.4 million in Canada and by 34.1 percent to $39.3 million in South America. Yue Yuen’s sales in June grew by 16 percent to $347.5 million and the company’s turnover for the 1st half of the calendar year is up by 17 percent to $1.86 billion.
Product-wise, Yue Yuen sold 16 percent more casual/outdoor shoes at $293.9 million, 11 percent more athletic shoes at $1.02 billion, 9 percent more sports sandals at $34.4 million and 10 percent more soles and components at $213.9 million. There was also a 111 percent jump in retail sales of apparel and footwear for the company.