Yue Yuen Industrial Holdings may be one of the beneficiaries of the changes in China’s labor laws as the company picks up new customers and increases business with their base.  The manufacturer of many of the largest athletic brands in the world, which has factories throughout China, Vietnam and Indonesia, again posted its strongest gains in its own retail operations, but also saw double-digit increases in sandals and athletic shoes in the year ended September 30, 2007. 

Total revenue jumped 12.5% for the year to $4.11 billion compared to $3.66 billion in the prior year. Owned-retail in China was the key driver for the year, increasing nearly 49% on top of an 80% increase in the prior year.  Shipment growth of Sport Sandals jumped more than 36% last year after lagging the rest of the business in the prior year.  Athletic Footwear and Casual/Outdoor Footwear were both up around 10% for the period. Growth in shipments to Canada and the U.S. were up the least, while Europe came back after a tough 2006.  South America and Asia grew the most.


Net profit rose just 1.6% to $359.4 million for the fiscal full year ended September 30 from $353.5 million in the prior year. 


Looking ahead, YY said it continued to see strong growth momentum in the fiscal first quarter ended December 31 as sales increased 16.8% to $1.12 billion for the period.  The company remains cautious as they assess the impact of the problems in the U.S. sub-prime mortgage market and its effect on retail.