Yue Yuen Industrial (Holdings) Limited said revenue declined 3.2% in the first quarter ended Dec. 31, to U.S.$1.32 billion while profit attributable to equity holders increased 10% year-on-year to $120.2 million.
For the current quarter, footwear manufacturing revnue declined by 9.8% to $905.8 million and correspondingly footwear production volume fell by 5.5% to 64.6 million pairs. However the wholesale and retail operations continued to benefit from the stronger economies in China, Hong Kong and Taiwan so that athletic footwear and apparel revenue increased year-on-year by 29.2% to $296.9 million.
By product category, Athletic Shoes revenue slid 8% to $707.6 million, Casual/Outdoor Shoes were down 13.5% to $181.1 million. Retail sales of shoes and apparel were up 29.2% to $296.9 million. Sales of the Soles, Components & Others category slid 9.2% to $112.9 million.
By geographic market, sales in the U.S. eased 3.3% to $394.6 million, sales in Canada were down 6.5% to $24.3 million; sales in Europe gave back 19.3% to $276.4 million and sales in South America were down 26% to $42.5 million. Sales in Asia rose 10.4% to $536.9 million.
SECOND QUARTER UPDATE
In the first two months of the second quarter of FY2010 (January and February of 2010), the Group recorded aggregate revenue of $893.3 million, a rise of 10.4% year-on-year. The Footwear manufacturing business recorded sales that were somewhat higher than those seen last year. Wholesale and retail operations in China, Hong Kong and Taiwan continued to exhibit growth in accordance with the economic growth of the Greater China Region.
“It appears the worst is over for the global economy. For the first five months of FY2010, footwear manufacturing sales experienced sequential growth on a month to month basis. The retail and wholesale operations will benefit from improving operating efficiency and increasing consumer spending in the Greater China Region,” said Tsai Chi Neng, Chairman of the Group.
