Home / Knowledge / News / Apparel/Garments / Retail sales from LA GO GO up, Ever-Glory
Retail sales from LA GO GO up, Ever-Glory
09
Aug '10
Ever-Glory International Group, Inc., a leading apparel supply chain manager and retailer in China, reported its financial results for the second quarter ended June 30, 2010.

During the second quarter of 2010, net sales increased 9.4% to $23.1 million compared to $21.1 million in the second quarter of 2009. The increase in our sales was primarily attributable to increased sales in our retail business.

Sales generated from the Company's wholesale business decreased 4.3% to $18.3 million, compared to $19.1 million in the second quarter of 2009. This decrease was primarily due to our giving up some of the lower margin orders in the fourth quarter of 2009. Most orders we fulfilled to realize our sales in the second quarter of 2010 were taken in the fourth quarter of 2009, in which time some of our clients couldn't offer a good price due to the economic slowdown, so we voluntarily gave up some lower margin orders.

Retail sales from LA GO GO, the Company's branded retail division, increased 137.5% to $4.8 million, compared to $2.0 million in the second quarter of 2009. As of June 30, 2010, the Company had 210 LA GO GO retail stores.

In the second quarter of 2010, gross profit was $4.5 million, which represents a slight increase compared to the same period in 2009. Gross margin decreased 1.8% to 19.5% in the second quarter of 2010, compared to 21.3% in the second quarter of 2009.

For our wholesale business, gross margin decreased 4.9% to 13.9% in the second quarter of 2010, compared to 18.8% in the second quarter of 2009. This decrease was primarily due to an increase in labor and raw material prices. When customers placed orders with us in the fourth quarter of 2009, the prices of the orders were based on the labor costs and raw material costs in that period. In the second quarter of 2010, when we began to fulfill the orders placed in the fourth quarter of 2009, the average labor and raw material costs increased significantly. Therefore, the margin on these orders decreased.

For our retail business, gross margin decreased 4.3% to 40.6% in the second quarter of 2010, compared to 44.9% in the second quarter of 2009. The decrease was primarily due to the fact that we reduced our sales prices in order to increase our sales volume.

"The second quarter of 2010 proved to be a challenging quarter for us on wholesale business due to the increased labor and raw material prices," commented Mr. Edward Yihua Kang, Chairman of the Board and Chief Executive Officer of Ever-Glory.

"But we are also very encouraged by our retail business's performance. Sales generated from our retail business increased considerably in the second quarter of 2010, which demonstrates the strong momentum we have with our retail strategy. We opened 26 new LA GO GO stores in the second quarter of 2010 and now have a total of 210 LA GO GO stores in China as of June 30, 2010."

Mr. Kang continued, "We plan to continue to develop LA GO GO through perfecting design styles and improving our store management efficiency. We are confident that we can strengthen and enhance same-store sales, and further expand LA GO GO's presence in China, in order to lay a foundation for organic growth."


Must ReadView All

India to be largest cotton producer in 2018-19: USDA

Textiles | On 22nd Jun 2018

India to be largest cotton producer in 2018-19: USDA

For the fourth consecutive season, India is expected to be the...

Organic Basics gets Polygiene help for advanced underwear

Apparel/Garments | On 22nd Jun 2018

Organic Basics gets Polygiene help for advanced underwear

Danish firm Organic Basics is working with Swedish company Polygiene, ...

Courtesy: Pexels

Textiles | On 22nd Jun 2018

Pakistan's textile exports up 9.82% in July-May FY18

The value of textile and garment exports from Pakistan increased by...

Interviews View All

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Silvia Venturini Fendi
Fendi s.r.l

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

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search