HONG KONG: Yue Yuen FY profit jumps 12.5%
- FY profit climbed 12.5% to US$506.2m
- Turnover rose 3.6% to US$7.29bn
- Shoe manufacturing turnover up 1.5% to US$5.07bn
Yue Yuen, the world's largest manufacturer of branded athletic and casual footwear, has seen its full-year profit jump 12.5%, helped by higher sales and more stable material prices.
Turnover in the 12 months to 30 September rose 3.6% to US$7.29bn.
Yue Yuen said retail and wholesale turnover, which was up 13.6% to $1.64bn, had been boosted by continued economic growth in Greater China and the opening of new stores.
But shoe manufacturing achieved turnover growth of just 1.5% to US$5.07bn as its brand customers - especially in Europe - were increasingly cautious in placing orders.
Sales of athletic shoes and casual/outdoor shoes were up by 1.8% and 0.5% respectively. But total shoe manufacturing volume fell by 5.4% to 308.9m pairs.
During the year, gross profit increased by 6.9% to US$1.66bn, helped by stable prices for materials and energy. Yue Yuen also said it had improved factory operating efficiency.
But selling, distribution and administrative expenses increased by 9.1% to US$1.15bn, driven by inflation in Asia, especially China, leading to rising wages and to higher rental costs.
Looking ahead, the group says it expects sales growth across its business to be "moderate," with profit growth "challenged by the variability of market conditions." In the long term, it sees greater demand for athletic and casual shoes as well as sportswear.
The Zero Discharge of Hazardous Chemicals (ZDHC) Group has launched version two of its Joint Roadmap, aimed at attaining a "new standard of environmental performance for the global apparel and footwea...
The Sustainable Apparel Coalition (SAC), which is working to reduce the environmental and social impacts of global apparel and footwear production, has launched a new interactive tool to help provide ...
Although major US companies have shown interest in importing garments from Burma/Myanmar, systems and infrastructure need to be improved and restructured before significant US-Burma clothing and texti...
The most-read stories on just-style this week include calls by a US government official for garment buyers to continue sourcing from Bangladesh, PVH executive Mark Green's vision for the future supply...
Nike will stop producing merchandise for Livestrong, the charity set up by disgraced cyclist Lance Armstrong. ...
- Yarn-forward rules weigh on Vietnam TPP potential
- Is China really going through a slump?
- TPP likely to lead to rise in US apparel imports
- Footwear to see "significant" gains from TPP
- Can supplier ratings reform purchasing practices?
- Gap to close 75 stores amid "disastrous" Q1
- H&M criticised for India, Cambodia labour abuses
- US Q1 in brief: Buckle, Destination XL
- Victoria's Secret discontinue swimwear to simplify
- Labour may limit Malaysia TPP apparel shipments