Chinese apparel supplier and retailer Ever-Glory saw a net profit decline of 15.9 per cent in the third quarter caused by expenses for new stores.

Net income slid to US$2.3 million for the quarter to September 30, from US$2.7 million a year earlier. Income from operations for the quarter decreased 26.5 per cent to US$2.6 million compared to US$3.5 million last year as a result of increased selling expenses for its retail business.

Total sales for the quarter grew 29.1 per cent to US$69.3 million from US$53.7 million last year. The increase was attributed to increased sales in wholesale business.

Retail sales from La Go Go brand jumped 109.5 per cent to US$24.4 million as the company opened 223 new stores taking the total count to 644.

Selling expenses for the quarter increased 102.2 per cent due to the increased number of stores as well as marketing expenses associated with the promotion of the La Go Go brand.

Looking ahead, Ever-Glory expects net income to stand between US$3.6 million to US$5 million in the fourth quarter.

GB