Ever-Glory Q1 total sales boost 35.4% to $106mn

23 Jun '14

4 min read

Ever-Glory International Group, Inc., a leading apparel supply chain manager and retailer based in China, reported its financial results for the first quarter ended March 31, 2014.

Total sales for the quarter were $106.0 million, an increase of 35.4% compared to $78.3 million in the first quarter of last year. This increase was primarily attributable to a 42.7% increased sales in retail business as well as a 24.6% increased sales in wholesale business.

Retail sales for the quarter from LA GO GO, the Company's branded retail division, increased 42.7% to $66.6 million, compared to $46.7 million last year. This increase was primarily due to the increase in new stores opened and same store sales. Ever-Glory had 976 LA GO GO stores as of March 31, 2014, compared to 755 LA GO GO stores as of March 31, 2013.

Wholesale sales generated from the Company's wholesale business for the quarter increased 24.6% to $39.4 million, compared to $31.7 million last year. This increase was primarily attributable to increased sales in the PRC, the Germany, France and Japan partially offset for decreased sales in the United Kingdom and United States.

Total gross profit for the quarter was $25.8 million, or 24.3% of total sales, compared to $20.3 million, or 25.9% of total sales last year.

Selling expenses for the quarter increased 36.0% to $16.1 million compared to $11.9 million last year. As a percentage of sales, selling expenses increased 10 basis points to 15.2% compared to 15.1% 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 quarter increased 41.4% to $6.4 million compared to $4.5 million last year. As a percentage of total sales, general and administrative expenses increased 30 basis points to 6.0% compared to 5.7% last year. The increase was attributable to an increase in payroll for additional management and design and marketing staff as a result of our business expansion.

Income from operations for the quarter decreased 16.1% to $3.3 million compared to $4.0 million last year. As a percentage of sales, income from operations accounted for 3.1% of our total sales for the quarter, a decrease of 2.0% compared to 5.1% last year.

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