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 minister Smriti Irani lighting the lamp to inaugurate the 6th edition of the International Apparel and Textile Fair ‘VASTRA 2017’, in Jaipur. Courtesy: PIB

Textiles | On 22nd Sep 2017

Placement rate in textiles sector is 70%: Indian minister

The recent high growth of foreign direct investment (FDI) in the...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Textiles | On 22nd Sep 2017

Messe Frankfurt acquires Source Africa, ATF textile shows

Messe Frankfurt, one of the world´s leading trade show organisers,...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Urs Stalder
Sanitized AG

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

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

September 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
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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