Hong Kong-based Yue Yuen Industrial (Holdings) Limited said Sales in the first quarter of 2010, or the three months ended December 2009, declined by 3.4% year-on-year to approximately US$1.31 billion. However, the company said it saw stable business from brand name customers for the balance of the year, thanks in part to the World Cup, which will take place in South Africa in June and July.
The company released the figures along with its financial results for the fiscal year ended Sept. 30, 2009. During that period, total revenues rose 2% to $5.01 billion, despite a 2.6% decline in athletic shoe sales by its manufacturing operations. Net profits per share for FY 2009 slipped 0.9% to 28 cents per share, or $464.7 million.
Shoe production declined 3.5% to 246.2 million pairs due primarily to more conservative batch ordering by international brands. The company reduced the number of production lines slightly to 423 allocated between mainland China, Vietnam and Indonesia.
Sales at its extensive retail operations, meanwhile, rose 19.6% year-on-year to $1.02 billion thanks to continuing strength of consumer spending in the Greater China Region. The total number of directly operated counters/stores in China stood at about 4,583 by the end of the fiscal year. In addition, there were approximately 1,245 distributors in the Greater China region for the Group's wholesale operations for the two licensee brands.
Sales to the U.S.A. in FY 2009 were surprisingly resilient given the drastic slowdown in economic activity for that region, the company reported. The sales growth rate for South America fell to mid-single digit compared to high double digits of the comparable period a year ago.
