Yue Yuens Q1 Net Slumps 53.1 Percent

Yue Yuen Industrial Holdings Ltd. reported first-quarter revenues inched ahead 0.5 percent to $1.71 billion. Earnings fell 53.1 percent to $55.7 million from $118.7 million.

In the US, revenues grew 11.7 percent to $529.7 million. Europe sales were down 5.3 percent to $291.5 million. Asia revenues decreased 2.1 percent to $762.0 million. South America sales slumped 10.2 percent to $73.9 million. Canada sales were down 7.6 percent to $19.4 million. Other Areas sales fell 13.4 percent to $33 million.

By category, Athletic Shoes declined 1.2 percent to $865.5 million, Casual/Outdoor Shoes were up 5.5 percent to $281.5 million, Sports Sandals were down 28.5 percent to $29.2 million and Soles, Components & Other was off 10.1 percent to 119.1 million. Revenues from Retail Sales (Shoes, Apparel & Leasing) were up 7.5 percent to $414.2 million.

Total sales of shoes made in the period fell by 0.6 percent whereas the volume of shoes sold fell 1.5 percent.

On May 6, Yue Yuen warned investors that it saw a significant downturn in the first quarter ended March 31 although it didnt provide any projections. The Hong Kong-based company, which manufactures in China, Vietnam and Indonesia, attributed deteriorating results to rising input costs, relocation and allocation of production capacity, and a one-off surge in profits in the year earlier quarter.