Home / Knowledge / News / Apparel/Garments / Ever-Glory Group Q2 sales surge 25.3%
Ever-Glory Group Q2 sales surge 25.3%
19
Aug '13
Ever-Glory International Group, a leading apparel supply chain manager and retailer based in China, reported its financial results for the second quarter ended June 30, 2013.

Total sales for the quarter were $59.1 million, an increase of 25.3% compared to $47.2 million in the second quarter of last year. This increase was primarily attributable to increased sales in Ever-Glory's retail business, which was partially offset by decreased sales in our wholesales business.

Retail sales for the quarter from LA GO GO, Ever-Glory's branded retail division, increased 74.5% to $32.1 million, compared to $18.4 million for the same period last year. This increase was primarily due to the increase in new stores opened and increase in same store sales. Ever-Glory had 831 LA GO GO stores as of June 30, 2013, compared to 562 LA GO GO stores as of June 30, 2012.

Wholesale sales generated from Ever-Glory's wholesale business for the quarter decreased 6.1% to $27.1 million, compared to $28.8 million for the same period last year. This decrease was primarily attributable to decreased sales in China, the United States, Germany and France.

The reduced sales in the oversea segment due to global economic uncertainty and instability, the developed economies represented by Europe and the U.S. are recovering slowly, which seriously impacted China's apparel exports; as a result, Ever-Glory's overseas wholesale business also faced declining orders.

Furthermore, domestic fashion consumption in China was weak due to the slow microeconomic development in China. Retailers in China who buy from Ever-Glory's domestic wholesale business reduced their inventories, resulting in a 21.2% decrease in our domestic wholesale sales compared to the same period last year.

Total gross profit for the quarter was $19.5 million, or 32.9% of total sales, compared to $13.6 million, or 28.8% of total sales for the same period last year.

Selling expenses for the quarter increased 42.1% to $9.9 million compared to $7.0 million for the same period last year. As a percentage of sales, selling expenses increased to 16.7% compared to 14.8% for the same period last year.

The increase was attributable to the increased number of LA GO GO stores, leading to increased numbers of retail employees and increased average salaries, as well as the increased store decoration and marketing expenses associated with the promotion of the LA GO GO brand.

General and administrative expenses for the quarter increased 31.3% to $5.5 million compared to $4.2 million for the same period last year. As a percentage of sales, general, and administrative expenses increased to 9.3% compared to 8.9% for the same period last year. The increase was attributable to an increase in payroll for additional management and design and marketing staff as a result of Ever-Glory's business expansion.

Income from operations for the quarter increased 67.9% to $4.1 million compared to $2.4 million for the same period last year as a result of increased gross revenue. As a percentage of sales, income from operations accounted for 6.9% of Ever-Glory's total sales for the quarter, an increase of 1.8% compared to 5.1% last year.


Must ReadView All

Textiles | On 27th Jun 2017

Govt defers tax deduction at source provision under GST

E-commerce players in India will not be required to deduct tax on...

Apparel/Garments | On 27th Jun 2017

Future Group aims Rs 12,000 crore in fashion business

Future Group, which runs retail stores across India under various...

Textiles | On 27th Jun 2017

AEPC & NSDL to help exporters with GST compliances

Apparel Export Promotion Council (AEPC) and National Securities...

Interviews View All

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mohammad Hassan
Biax Fiberfilm

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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

news category


Related Categories:
July 2017

July 2017

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

SUBSCRIBE


Browse Our Archives

GO


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