• Net income dips 51.8% to $0.8m
  • Net sales increased 9.4% to $23.1m
  • Selling expenses rose 138.0%

Chinese apparel firm Ever-Glory International Group has reported a fall in second quarter income, despite increased sales buoyed by its retail unit.

The supply chain company saw its wholesale business decline 4.3% to $18.3m though, primarily due to giving up some of its lower margin orders in the fourth quarter of 2009. Retail sales increased 137.5% to $4.8m from the firm's La Go Go chain.

"The second quarter of 2010 proved to be a challenging quarter for us on wholesale business due to the increased labor and raw material prices," said Edward Yihua Kang, CEO of Ever-Glory. "But we are also very encouraged by our retail business's performance."