Ever-Glory International Group, Inc., a leading apparel supply chain manager and retailer based in China, reported its financial results for its fiscal year ended December 31, 2013.
Total sales for the year ended December 31, 2013 were $368.1 million, an increase of 31.6% from the year ended December 31, 2012. This increase was primarily attributable to a 74.7% increased sales in retail business as well as a 4.3% increased sales in wholesale business.
In 2013, retail sales from LA GO GO, the Company's branded retail division, increased 74.7% to $189.7 million, compared to $108.6 million in 2012. This increase was primarily due to the increase in new stores opened and same store sales. Ever-Glory had 960 LA GO GO stores as of December 31, 2013, compared to 727 LA GO GO stores at December 31, 2012.
In 2013, wholesale sales generated from the Company's wholesale business increased 4.3% to $178.3 million, compared to $171.0 million in 2012. This increase was primarily attributable to increased sales in the PRC, the United Kingdom and Europe partially offset by decreased sales in Germany, Japan and the United States.
Total gross profit for the year 2013 was $94.6 million, or 25.7% of total sales, compared to $65.1 million, or 23.3% of total sales last year.
Selling expenses for the year 2013 increased 53.5% to $51.8 million compared to $33.7 million last year. As a percentage of sales, selling expenses increased 200 basis points to 14.1% compared to 12.1% last year. The increase was attributable to the increased number of 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 year 2013 increased 51.9% to $24.7 million compared to $16.2 million last year. As a percentage of sales, general and administrative expenses increased 90 basis points to 6.7% compared to 5.8% last year. The increase was attributable to an increase in the number of wholesale and retail management personnel.
Income from operations increased by 20.3% to $18.1 million in 2013 from $15.1 million in 2012. As a percent of sales, income from operations accounted for 4.9% of our total sales in 2013, a decrease of 0.5% compared to 2012.