Ever-Glory reports 2010 full year financial results
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, 2010.
Full Year 2010 Highlights
• Total net sales increased 49.3% to $134.1 million
• Gross profit increased 42.9% to $26.2 million
• Income from operations increased 8.2% to $6.6 million
• Acquired the 40% non-controlling interest in LA GO GO, bringing the Company's ownership of its retail segment to 100%
During the fiscal year ended December 31, 2010, net sales increased 49.3% to $134.1 million from $89.9 million in 2009. The increase in sales was primarily attributable to increased sales in Ever-Glory's retail business as well as its wholesale business in China.
In 2010, retail sales from LA GO GO, the Company's branded retail division, increased 122.1% to $29.3 million, compared to $13.2 million in 2009. This increase was primarily due to the increase of same store sales and new stores opened. Ever-Glory increased the number of LA GO GO stores from 185 at the end of last year to 293 stores as of December 31, 2010.
In 2010, sales generated from the Company's wholesale business increased 36.7% to $104.8 million, compared to $76.7 million in 2009. The increase was mainly attributable to the increased sales in China. In response to the global economic uncertainty and political instability in fiscal year 2010, Ever-Glory shifted its wholesale marketing effort to develop its wholesale business in the Chinese market.
Management believes that Ever-Glory's expertise in supply chain management and years of experience in the wholesale business enabled the Company to quickly obtain significant orders in the Chinese wholesale market.
"In 2010, we were very pleased to see sales increase significantly in both our wholesale and retail segments," commented Mr. Edward Yihua Kang, Chairman of the Board and Chief Executive Officer of Ever-Glory. "On behalf of our board and management, I extend my warmest thanks to our customers for their trust in us, and to our staff for their tireless efforts and devotion to our customers."
In April 2010, Ever-Glory acquired the 40% non-controlling interest in LA GO GO from its joint venture partner, Shanghai La Chapelle, bringing the Company's ownership stake in its retail business to 100%. In connection with such acquisition, and in order to focus on the Company's core businesses, Ever-Glory sold the 10% equity interest in Shanghai La Chapelle which it acquired when Every-Glory and Shanghai La Chapelle originally formed the LA GO GO joint venture in 2008.
Following this acquisition, in 2010, Ever-Glory focused on the full integration of the LA GO GO business and management into the Company and continued to implement the Company's brand strategy. Through these efforts, the retail business achieved strong performance, and management believes that going into 2011 and beyond, Ever-Glory has strong momentum with its retail strategy. The total number of LA GO GO stores in China increased from 185 at the end of 2009 to 293 stores as of December 31, 2010, and Ever-Glory expects to open additional 80-100 stores in 2011.