Home / Knowledge / News / Apparel/Garments / Revenue zooms 26% at apparel firm Zuoan Fashion in Q2
Revenue zooms 26% at apparel firm Zuoan Fashion in Q2
31
Aug '12
Zuoan Fashion Limited, a leading design-driven fashion casual menswear company in China, announced its financial results for the second quarter ended June 30, 2012.

James Hong, Founder, Chairman of the Board and Chief Executive Officer, commented, "We had another strong quarter of top line revenue and bottom line earnings growth, exceeding our  financial second quarter forecast.  Our growth was primarily fueled by an increase in wholesale prices implemented last year as well as higher revenue derived from direct and flagship stores."

"We experienced elevated inventory positions at the end of the second quarter by our distributors and sub-distributors compared to last year due to a general slowdown in the Chinese consumer market.  We are actively working with our distributors to clear through any excess inventory so our fall/winter collections can be prominently displayed throughout our distributor and sub-distributor Zuoan stores in the second half of the year. 

We look forward to improving our inventory channels through the implementation of our ERP system which is scheduled for October.  The installation of this system will initially benefit our company-owned stores but are expected to be deployed in our distributors' warehouse and logistic systems within the next 12 months."

"As the consumer market in China becomes more challenging, we are taking all relevant actions to manage our cost structure and maximize operational efficiency.  As part of this effort, we have applied additional cost and quality controls to our supply chain, reduced our total number of suppliers to obtain more favorable pricing and implemented stricter requirements on quality to ensure customer loyalty.  Despite slower market conditions, we continue to believe that 2012 will result in respectable revenue and net profit growth for Zuoan. 

Our brand recognition in China continues to grow through our domestic marketing efforts and international design collaborations and trade show participation.  We continue to build on this momentum through our upcoming involvement in China Fashion Week, one of China's largest fashion events."

Second Quarter 2012 Financial Performance

Revenue for the second quarter was RMB301.6 million ($47.5 million), a 26.0% increase from RMB239.3 million ($37.7 million) in the same period last year.  The increase in revenue was driven by both distributor and direct store sales volume.  Second quarter distributor sales increased 14.5% to RMB271.2 million compared to RMB237.0 million in the second quarter of 2011. Second quarter 2012 self-operated direct store and flagship store sales were RMB 30.3 million. A net total of 30 distributor and sub-distributor stores, 2 direct stores and 4 Company self-operated flagship stores were opened in the second quarter of 2012, resulting in a total of 1,331 store locations at the end of June 30, 2012 compared to 1,295 store locations at the end of March 2012.


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search