Total sales for the quarter were $106.7 million, an increase of 54% compared to $69.3 million in the third quarter of last year. This increase was primarily attributable to increased sales in Ever-Glory's retail business as well as wholesale business.
Retail sales for the quarter from LA GO GO, Ever-Glory's branded retail division, increased 74.4% to $42.5 million, compared to $24.4 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 904 LA GO GO stores as of September 30, 2013, compared to 644 LA GO GO stores as of September 30, 2012.
Wholesale sales generated from Ever-Glory's wholesale business for the quarter increased 42.9% to $64.2 million, compared to $44.9 million for the same period last year. This increase was primarily attributable to increased sales in the United Kingdom, United States, Europe-Other and the People's Republic of China.
Total gross profit for the quarter was $25.4 million, or 23.8% of total sales, compared to $15.3 million, or 22.1% of total sales for the same period last year.
Selling expenses for the quarter increased 65.5% to $14.2 million compared to $8.6 million for the same period last year. As a percentage of sales, selling expenses increased to 13.3% compared to 12.4% for the same period last year. The increase was attributable to the increased number of retail employees and increased average salaries, as well as increased store decoration and marketing expenses associated with the promotion of the LA GO GO brand.
General and administrative expenses for the quarter increased 61.0% to $6.7 million compared to $4.2 million for the same period last year. As a percentage of sales, general and administrative expenses increased to 6.3% compared to 6.0% for the same period last year. The increase was attributable to an increase in the number of wholesale and retail management personnel.
Income from operations for the quarter increased 74.1% to $4.5 million compared to $2.6 million for the same period last year. As a percentage of sales, income from operations accounted for 4.2% of Ever-Glory's total sales for the quarter, an increase of 0.5% compared to 3.7% last year.
For the third quarter, net income was $3.9 million, or $0.26 per diluted share, an increase of 70.8% from $2.3 million, or $0.15 per diluted share in the third quarter of 2012. Net income in the third quarter of 2012 includes approximately $0.1 million of non-cash income related to the change in fair value of a derivative liability. There was no such liability in the third quarter of 2013.
Balance Sheet and Cash Flow
As of September 30, 2013, Ever-Glory had approximately $11.7 million of cash and cash equivalents, compared to approximately $9.4 million as of December 31, 2012. Ever-Glory had working capital of approximately $30.3 million as of September 30, 2013, and outstanding bank loans of approximately $48.3 million as of September 30, 2013.
Click here to view full results.
Apparel/Garments | On 26th Apr 2018
The Foreign Buyers Association of the Philippines (FOBAP), a body...
Textiles | On 26th Apr 2018
A German traders delegation will soon visit Pakistan to explore...
ITME is an occasion not only to receive new leads but also to work on...
Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd
Productivity, creativity and innovation play a vital role in the growth of ...
Union budget 2018-19 will have positive impact on apparel industry
Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....
Kusumgar Corporates is a leading manufacturer of technical textiles and...
<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...
Steve Cole of Xerium Technologies discusses the industry. Xerium is the...
Larry L Kinn
Larry L Kinn, Senior Vice President - Operations Americas of Suominen...
Biovation II LLC
Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...
<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...
Gildan Activewear SRL
Gildan Activewear, a manufacturer and marketer of branded clothing and...
Divvya and Nidhhi Gambhir
<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...
Do you think the sustainability space has the needed tools and resources available for a business to lead change?Yes No Skip
Do you see sustainability as a route to business growth?Yes
Total Votes: 103
Do you think adopting a sustainable approach will be a profitable move for your business?Yes No Skip
Total Votes: 103
Do you want the world to know about your sustainability journey and your business’ environmental footprint?Yes No Skip
Do you think adopting a sustainable approach will be a profitable move for your business?Yes
Total Votes: 103
Thanks for your valuable feedback. Claim your free latest sustainability e-book.
Total Votes: 103