Yue Yuen sales surge
Yue Yuen, the world’s largest branded athletic and casual footwear manufacturer and retailer, says retail sales of its sportswear in Greater China rose 16.3 per cent in the year to December 31.
Yue Yuen operates 4943 directly owned shoe stores in Greater China and supplies a further 2893 stores operated by sub-distributors in Mainland China, all trading under its own brands – YY Sports, through subsidiary Pou Shen – or international labels it partners with.
Retail sales for 2015 reached US$2.298 billion, accounting for 27.3 per cent of parent Yue Yuen Industrial’s turnover. Last year’s apparel sales accounted for 24 per cent of the business, at $1.975 billion.
In a stock exchange filing, Yue Yuen says the operating environment for the sportswear retail business in the PRC had been positive despite the slowing economic growth.
“Since management felt that consumer spending on sports footwear and apparel would remain robust, it decided to further expand the store network and this led to operating costs in aggregate to increase when compared to those reported in financial year 2014.”