Yue Yuen Industrial (YY), the world's largest footwear manufacturer, saw its turnover increase by 3.2 percent to $5,559.5 million for the nine months until the end of September, but its profit declined due to the higher cost of sales.
The company said the volume of shoes sold for the three quarters inched up by 2.0 percent to 230 million pairs and they increased by 4.0 percent in value. Athletic shoes generated sales of $2,808.5 million, up by 3.5 percent, while sales of casual and outdoor shoes jumped by 6.6 percent to $982.0 million. Meanwhile, sales of sports sandals dropped by 12.5 percent to $58.2 million. When it comes to retail sales, YY reported a turnover of $1,273.3 million, an increase of 2.4 percent.
The group's gross profit landed at $1,182.3 million down by 3.3 percent and amounting to a gross profit margin of 21.3 percent, down by 1.4 percentage points compared with the same period last year. YY's net profit for the nine months ended at $324.9 million, down by 3.9 percent.
YY added that, excluding all non-recurring operating items, the recurring operating profit attributed to the owners of the company reached $291.7 million, which was a decline of 10.5 percent.
Pou Sheng, the large-scale Chinese sporting goods retailer spun off by YY but still controlled by the group, reported a slight sales decline of 0.7 percent to $1,310.3 million for the nine months. It suffered a loss of $23.6 million, but that was still better than the loss of $48.1 million for the same period last year, mostly due to reduced operating costs.
