The world’s largest contract footwear manufacturer holds its manufacturing business steady — but its China retail subsidiary drags the group result, underscoring the divergent pressures facing the sector’s supply side and its consumer-facing operations.
Yue Yuen Industrial (Holdings) Limited, the world’s largest contract manufacturer of athletic, outdoor and casual footwear and a key production partner for leading global sports brands, reported full-year 2025 results on March 11 that reflect a clear split between a resilient manufacturing core and a struggling retail operation in Greater China.
Group revenue fell 1.8 percent to US$8,031.4 million (approximately €7.4 billion) from US$8,182.2 million in 2024. The result was shaped by two opposing dynamics: manufacturing business revenue edged up 0.5 percent to US$5,648.3 million, while Pou Sheng, the group’s retail subsidiary across Greater China, posted a 7.0 percent revenue decline to US$2,383.1 million, as subdued consumer confidence and heavy industry-wide promotional activity weighed on store and distributor performance.
| Yue Yuen Industrial (Holdings) – Key Financial Highlights FY2025 | |||
|---|---|---|---|
| Group | Manufacturing | Retail (Pou Sheng) | |
| Revenue | |||
| Reported value | US$8,031.4 mn | US$5,648.3 mn | RMB 17,132 mn |
| Year-on-year change | -1.8% | +0.5% | -7.2% |
| Gross profit margin | |||
| Reported value | 22.8% | 18.2% | 33.5% |
| Year-on-year change (pp) | -1.6 pp | -1.7 pp | -0.7 pp |
| Source: Yue Yuen Industrial (Holdings) Limited, FY2025 Annual Results, March 11, 2026 Retail revenue reported in RMB (Pou Sheng reporting currency) |
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Overall gross profit margin compressed by 1.6 percentage points to 22.8 percent, with the manufacturing margin down 1.7 percentage points to 18.2 percent, attributed to uneven production leveling, labor cost pressures and capacity ramp-up costs at several plants.
On volume, the group shipped 252.2 million pairs of shoes, a 1.2 percent decline, partly offset by a stronger average selling price of US$21.00 per pair — up 3.7 percent — reflecting a richer product mix.
| Yue Yuen Industrial (Holdings) – FY2025 Group Revenue by Category | |||||
|---|---|---|---|---|---|
| Category | FY2025 (US$ mn) | FY2024 (US$ mn) | Share FY25 (%) | Share FY24 (%) | YoY change (%) |
| Athletic / Outdoor Shoes | 4,435.0 | 4,403.6 | 55.2% | 53.8% | ▲ 0.7% |
| Casual Shoes & Sport Sandals | 861.6 | 765.4 | 10.7% | 9.4% | ▲ 12.6% |
| Soles, Components & Others | 351.7 | 451.8 | 4.4% | 5.5% | ▼ 22.2% |
| Pou Sheng (retail, Greater China) | 2,383.1 | 2,561.4 | 29.7% | 31.3% | ▼ 7.0% |
| Total Revenue | 8,031.4 | 8,182.2 | 100.0% | 100.0% | ▼ 1.8% |
| * Pou Sheng sales in FY2025 decreased by 7.2% YoY in RMB terms (reporting currency). | |||||
| ^ Pou Sheng: retail subsidiary in Greater China region. That includes shoes, apparel, concessionaire commissions and others. |
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| Source: Yue Yuen Industrial (Holdings) Limited, FY2025 Annual Results, March 11, 2026 | |||||
Tariff risks loom as capacity shifts to Indonesia and India
Looking ahead, the Hong Kong-listed group flagged tariff-related uncertainty, macroeconomic volatility and logistics disruptions as near-term risks. It said expanding capacity in Indonesia and India remains central to its medium-term manufacturing strategy. A new facility in Central Java, Indonesia, began operations in the third quarter of 2025, and construction of a new India plant is ongoing.
A full analysis of the Yue Yuen 2025 results — including a breakdown by segment and market — will be published later today on sgieurope.com.
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