Yue Yuen Industrial (Holdings) Limited sees continued consolidation in the supply chain for the footwear manufacturing business as a positive matter that helped the company, which manufactures footwear for most of the top brands in the sporting goods market, post  solid double-digit increase in revenues. 


Yue Yuen, reported that revenues for the fiscal first quarter ended December 31 increased 17.7% to $1.36 billion from $1.15 billion in the prior-year period.  Profit attributable to equity holders of the company increased 9.6% to $109.3 million. 

 

Footwear manufacturing revenues increased 17.6% to $1.00 billion, led by strong double-digits gains in Sport Sandals (+25.2%) and Casual & Outdoor footwear (+23.5%).  Athletic footwear growth lagged the other categories, but still managed a 15.9% increase in revenue for the period.  Total footwear production volume rose just 6.9% to 68.4 million pairs, indicating a steep increase in average cost per pair.


The company said wholesale and retail operations in China, Hong Kong and Taiwan saw growth in consumer spending for athletic footwear and apparel, fueling a 40.4% increase in retail operations to $229.8 million. 
The company has seen revenue growth slow considerably in the fiscal second quarter-to-date as January/February revenues rose just 3.7% to $809.2 million, with the footwear manufacturing business flattish and the company’s retail businesses in China, Hong  Kong  and  Taiwan showing growth.