Chinese footwear manufacturer Kingmaker, which produces for Wolverine Worldwide and other international brands, reported a net loss of HK$33.89 million (€3.7m) for its fiscal year ended March 31. The result marks a sharp turnaround from the HK$20.22 million (€2.2m) profit recorded the previous year. Revenue declined by 9 percent year-over-year to HK$625.88 million (€68.1m), down from HK$689.27 million (€75.0m), with the company citing subdued order flow, lower average selling prices and higher labor costs.
Despite a 3 percent reduction in operating expenses, gross margin turned negative. The bottom line was further impacted by a negative HK$15.6 million (€1.7m) adjustment in the fair value of investment properties.
Sales performance varied significantly by region. Sales to the US fell 16 percent to HK$152.4 million (€16.6m), Asia was down 6 percent to HK$125 million (€13.6m), and other regions dropped by a third to HK$128 million (€13.9m). Europe, however, bucked the trend, growing 21 percent to HK$220.5 million (€24.0m).
Approximately 76 percent of Kingmaker’s revenue came from rugged footwear, with the remainder from casual and children’s shoes. Production remains underutilized, with only 56 percent of its 7-million-pair capacity reached last year across 21 production lines in Vietnam and Cambodia.
While the first quarter of FY26 began with a solid order flow, as customers looked to front-load shipments ahead of tariffs, Kingmaker warned that potential reciprocal US tariffs could significantly impact its business outlook.
This article is based on reporting from our colleagues at the US edition of SGI.
