Yue Yuen Industrial Ltd., the Chinese manufacturing behemoth that makes footwear for many key athletic and outdoor brands, reported consolidated net revenues improved 12.8% to $1.34 billion in the fiscal second quarter ended March 31 from $1.19 billion in the year-ago period.
By business segment, footwear manufacturing continued to account for the majority of the company’s business, making up 69.7% of total sales for the quarter. Footwear manufacturing revenues increased 9.6% to $933.4 million. Retail inched up as a percent of total revenues, growing 21.7% to $293.1 million, or 21.9% of total revenues.
Regarding outlook, management for Yue Yuen said sales for the first two months of the fiscal third quarter improved 17.6% to $1.01 billion, adding that sales for footwear manufacturing “should be firm” on the back of the 2010 World Cup advertising activities of brand name customers.
Company Chairman Tsai Chi Neng said in a statement “(Yue Yuen) looks forward to the continuing economic growth of China and the increase in consumer spending by its citizens.”