Yue Yuen Industrial, the footwear manufacturing giant out of Hong Kong, continues to prosper from a thriving footwear manufacturing market in Great China. The company posted a triple-digit jump in net profits in the third quarter ended June 30, to $237 million from $116 million in the year ago period.
Sales for the period were up high-teens, boosted largely by a strong-double digit increase in athletic shoe sales and significant growth in the retail business in Asia. Regionally, the companys sales in the U.S., Europe and Asia increased strong-double digits for the nine month period.
Gross margins remained relatively flat, at 22.8% versus 22.4% a year ago.
In a statement, chairman Tsi Chi Neng said, “We have spun off our subsidiary containing the high growth retail operations under Pou Sheng. Yue Yuens core business will still be footwear manufacturing. We will continue to strengthen our relationships with our international brand customers. Our attention will be devoted to enhancing our production management control system and improving our level of efficiency in our operations.”
July and August sales for the company were approximately $866.5 million, a 21.3% increase from the same period a year ago.
Revenue growth for the company was said to be supported by consistent growth in the footwear manufacturing businesses and significant growth opportunities n the Chinese wholesale and retail operation.
