The globe’s largest footwear manufacturer Yue Yuen realized a whopping 121 growth in profit attributable to company owners at $184.4 million versus $83.6 million for the six months ended June 30. Ebit rose by 85 percent to $265.2 million against $143.2 million in the year-ago period. Gross margin improved by 80 basis points to 24.3 percent from 23.5 percent despite a 3.4 percent decline in H1 revenues to $4.02 billion from $4.15 billion.
In reporting the results, the Chinese group said it was confident about a solid recovery in the footwear industry despite a current, short-term unsettled environment related to uncertainties about global macroeconomic conditions, regional conflicts, and higher shipping costs. The company reported increasing orders from international customers requesting shorter lead times of 30 to 45 days on their orders.
Yue Yuen’s manufacturing business increased its six-month sales by 2.4 percent to more than $2.6 billion, while its retail subsidiary, Pou Sheng, suffered a 12.7 percent sales decline to $1.38 billion. On the manufacturing side, athletic/outdoor shoe sales inched up by 0.5 percent year-over-year to $2.07 billion; casual shoes/sport sandals revenues grew by 6.6 percent to $336.4 million; and soles/components/other sales increased by 14.6 percent to $223.4 million.
Pou Sheng realized a 12.7 percent drop in H1 sales to $1,381.0 million from $1,581.1 million. However, in reporting currency, the Chinese yuan, segment revenues were down by 8.9 percent as the unit dealt with weak store traffic in China. The unit ended H1 with 3,478 stores across the Asian country, down by 45 doors year-over-year, as the number of larger-format stores (over 300 sq. meters) increased by 21.0 percent.
