• Q2 earnings fall 36.4% to US$3.5m
  • Gross margin improves 540 basis points to 39.7%
  • Sales drop 11.6% to $75.7m

Apparel retailer Ever-Glory International Group has revealed a mixed second-quarter as earnings and sales fell but margins improved.

In the three months to the end of June, earnings dropped 36.4% to US$3.5m from $5.5m a year earlier.

Total gross margin increased 540 basis points to 39.7% thanks to an improvement in retail gross margin, which increased 960 basis points to 51.8%.

The company said selling expenses increased 22.1% in the quarter to $17.6m, while general and administrative expenses were up 0.9% to $7.6m.

Sales for the quarter dropped 11.6% to $75.7m, primarily due to a 6.8% decrease in sales in Ever-Glory's retail business, as well as an 18.1% drop in wholesale sales.