Mainland shoe retailer Pou Sheng boosted sales by 26.9 per cent in the last quarter, to US$858.5 million, a highlight in what was otherwise a disappointing set of figures from parent Yue Yuen Industrial.
Hong Kong-listed Yue Yuen manufactures shoes for a raft of brands, including Geox, Levi’s, Rockport, Carters and Pony, as well as operating its own retail store network. Total group revenue reached $2.287 billion, up 8.9 per cent purely due to its retail performance.
As of mid last year, Pou Sheng operated a network of 5464 directly operated stores and 3036 sub-distributor stores predominantly on the mainland.
Profit attributable to owners of the company plunged 23.3 per cent to $95.4 million.
The company said the poor result was “mainly due to operating deleverage from the sales decline within the manufacturing business” which we interpret as declining demand for manufactured products.
Yue Yuen said the volume of shoes produced decreased by 5.1 per cent to 76.6 million pairs compared with the same quarter last year and the average selling price per pair slipped 1.3 per cent to $15.75 per pair.
“Total revenue attributable to footwear manufacturing activity (including athletic shoes, casual/outdoor shoes and sports sandals) during the period decreased by 6.3 per cent to $1.206 million.”