• Profit was CNY73.8m ($11.9m) against CNY67.4m
  • Revenues rose 5.8% to CNY296.3m over CNY279.9m 
  • Gross margin slipped to 45.7% from 46.8%

Chinese casual men's wear retailer Zuoan Fashion has today (6 June) reported a 9.5% increase in first-quarter profit, boosted by higher sales.

Commenting on the results, founder, chairman and CEO James Hong said: "We are pleased to start off 2013 with healthy top line and bottom line results in the first quarter."

"Our sales were primarily driven by growth at the distributor level and through our direct stores as well as higher average selling prices achieved as we incorporated higher quality raw materials into our product offering."

During the quarter, Zuoan Fashion opened 33 distributor and sub-distributor stores, taking its total number of stores to 1,362.

"As China's consumer spending environment continues to stabilise and show signs of improvement, we are confident our revenue and profitability can continue to grow with the anticipated recovery as well as through our efforts to enhance our distribution network, maximise operational efficiencies and increase Zuoan's brand awareness," added Hong.

Looking forward, the company expects second-quarter earnings per share to be CNY0.52-CNY0.56 and revenue to be between CNY304-CNY324m.