Pou Sheng International (Holdings) Limited, which is the largest distributor of international branded athletic apparel and footwear in the People's Republic of China, reported net sales increased 23.9 percent for the first quarter ended March 31.
Pou Sheng reported net consolidated operating revenue reached $580.5 million for the three months ended March 31, compared with $468.7 million in the first quarter of 2014. In March, sales reached $197.2 million, up 16.7 percent from $169.0 million in March, 2014.
The company is a key national retailer for both Nike and Adidas and is pushing to expand its assortments of outdoor performance branded apparel and footwear to fuel growth as it sheds its legacy OEM and licensed brand businesses.
Pou Sheng derived 98 percent of its $1.98 billion in consolidated net sales last year from its retail operations, but also owns licensing rights for Hush Puppies in Taiwan through the end of 2015 and for Pony in mainland China and Taiwan until the end of 2018. It is in the process of winding down its OEM business for Chinese brands such as Ni Ling and 361˚.
Pou Sheng ended 2014 with nearly 4,300 retail outlets and 2,700 sub-distributors with a particularly strong presence in the PRC's second- and third-tier cities. Last month, the company reported net sales increased 11.4 percent to $1.98 billion in the year ended Dec. 31, 2014, as a 15.4 percent increase in retail sales more than offset declining sales from licensed brands and OEM operations. It said it expected the improving U.S. economy, the Chinese government's efforts to stimulate consumer spending and cleaner retail inventories to enhance margins in 2015 and beyond.
The company is a publicly traded subsidiary of Yue Yuen Industrial Holdings Inc., the world's largest manufacturer of internationally branded athletic and outdoor footwear, including many of the brands it sells.
