Hong Kong-based Yue Yuen Industrial (Holdings) Limited said sales improved about 28% to $US1.69 billion for the first quarter ended Dec. 2010 due to growing demand that was served only by limited manufacturing capacity expansions.
Yue Yuen also issued results for the full year ended Sept. 30, 2010 and said increasing orders from footwear brands drove total sales to 15.4% growth year-on-year to approximately US$5.79 billion while net profit attributable to owners increased by 3.2% year on year to approximately US$479.5 million.
Basic earnings per share at US$29.08 cents, increased by 3.3% compared to last year's figure.
The company said footwear manufacturing activity for the group picked up significantly compared to last year's level due to general footwear industry growth and its consolidation in sourcing activities along with a steady improvement in consumer spending that spurred more orders from the group's brand name customers.
Sales to the group's largest geographic market, Asia, grew at moderate pace of 15.1% compared to last year's while the second largest market, the USA, was able to return to a pre-crisis level of sales with year on year growth at 11.4%.
The European market managed a very modest level of growth at 5.6% year on year. The company said smaller markets did well as certain brand name customers were able to grow their market share very rapidly after implementing well designed marketing programs.
Sales of athletic shoes, the key product category for the Yue Yuen, experienced 13.1% year on year growth as major customers not only designed athletic shoes featuring innovative technology and eye catching patterns, but also pursued marketing strategies that provided a spectrum of price points to satisfy the broadest range of customers possible.
Retail sales grew as China continued to experience solid GDP growth and consumers in China maintained their preference of purchasing athletic footwear and apparel of well known brand name.
