Yue Yuen Industrial Ltd., the worlds largest supplier of branded athletic and casual shoes, reported sales for the first fiscal quarter ended Dec. 31 slipped 3.2% to $1.32 billion. Profit attributed to equity holders surged 10.0% to $120.2 million. Manufacturing revenues for the first quarter fell 9.8% to $905.8 million while footwear production volume slid 5.5% to 64.6 million pairs. Still, management maintained that wholesale and retail operations continued to benefit from the stronger economies in China, Hong Kong and Taiwan which drove total revenues for the companys Asia market to 10.4% growth. Notably, Yue Yuen said its U.S. segment slipped 3.3% to $396.6 while Europe sales plummeted 19.3% to $276.4 million versus the prior-year period.
It appears the worst is over for the global economy, said Tsai Chi Neng, Chairman of the Group. For the first five month of [fiscal 2010], footwear and manufacturing sales experienced sequential growth on a month-to-month basis. Neng pointed to increased consumer spending in the Greater China Region as a key driver.
For the first two months of the second quarter of fiscal 2010 (January and February), Yue Yuen Industrial reported total revenues of $893.3 million, an increase of 10.4% as compared to the year-ago period.
Management said sales to the Footwear manufacturing business were somewhat higher than last year, adding that wholesales and retail operations in the Greater China Region, which includes China, Hong Kong and Taiwan, continued to exhibit growth.
