Yue Yuen Industrial Holdings’ net profit for the fourth quarter ended Dec. 31 rose by 9.6 percent to $109.3 million, while sales increased by nearly 18 percent to $1,358.7 million.
For the world’s biggest shoemaker, revenues from footwear manufacturing were up by 17.6 percent to exactly $1,000 million in the quarter. In this most important sector of its business, athletic shoes grew by 15.9 percent to $768.8 million; casual and outdoor shoes had an increase of 23.5 percent to $209.4 million, and sport sandals rose by 25.2 percent. Volume production of footwear was up by just 6.9 percent to 68.4 million pairs, so the improved sales figures indicate a large jump in average price per pair.
The group’s retail sales were up by 40.4 percent to $229.8 million, helped by the growth of consumer spending in China, Hong Kong and Taiwan. Production of soles and other components had a drop of 8.9 percent to $124.4 million.
Yue Yuen says continued consolidation in the supply chain helped its quarterly numbers. In the second quarter to date, however, growth slowed significantl,y with sales up by 3.7 percent in January and February. Retailing in China, Hong Kong and Taiwan continued to grow, but footwear manufacturing remained flat in the first two months of the calendar year.