Yue Yuen Industrial Holdings Limited posted a strong fiscal first quarter as both sales and net profit grew in the double-digits for the period ending Dec. 31, 2007. Overall net sales increased 20.2% to $1.15 billion for the quarter from $960.3 million last year.

Footwear manufacturing turnover increased 13.9% to $854.0 million with footwear production volume increasing 16.4% to 64 million pairs. Wholesale and retail sales in China, Hong Kong and Taiwan increased 84% to $163.7 million. A flurry of recent reports suggest that the anticipated spin-off of the company’s retail division, Pou Sheng International, could generate between $400 million and $800 million later this year.


Sales of Athletic Shoes increased 19.2% to $663.5 million from $556.4 million last year, but Casual/Outdoor sales declined 3.1% to $169.5 million. Sports Sandals sales increased 13.5% to $21.0 million. Sales to the U.S. increased 3.5% to $347.2 million as sales to Canada increased 7.6% to $21.2 million.


Gross profit increased 210 basis points to 24.7% of net sales for the period, which helped to generate a 12.5% increase in net profit to $105.0 million from $93.3 million for the year-ago quarter.


The company reported that net sales increased 25.6% to $780.4 million for the first two months of the fiscal second quarter.