• Q3 net income jumped 48% to $2.7m
  • Total sales rose 68.1% to $53.7m
  • La Go Go retail sales soared 83.8% to $11.6m 

Apparel supplier and retailer Ever-Glory International Group Inc has seen its third quarter profit jump 48%, thanks to higher sales in both its retail and wholesale businesses.

Retail sales from La Go Go, the company's branded retail division soared 83.8% to $11.6m, from $6.3m a year earlier. A near-doubling of stores drove this growth, rising to 421 stores from 214 last time.

Wholesale revenues in the three months to 30 September surged 64.2% to $42.0m from $25.6m, with sales up in China, the UK and the US, the company said.

Expanding its sourcing base to Vietnam and Cambodia from the third quarter of 2010, supported this growth by "significantly increasing our production capacity to process more orders."

Lower outsourced manufacturing costs also helped lift gross margin by 1.0% to 20.9%, from 19.9% last year.

"We will continue to develop La Go Go through perfecting design styles, improving store management efficiency and opening more stores in desired locations," noted chairman and CEO Edward Yihua Kang.

"We are confident that, through these measures, we can enhance same-store sales, expand La Go Go's market penetration and increase its brand influence in China."