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Ever-Glory International's high-risk strategies pay off

02
Jun '06

Apparel firm Ever-Glory International Group, founded in China's Jiangsu Province in 1993, was listed on the Nasdaq in December 2005 and has established its new headquarters in Los Angeles.

The company plays very high-risk strategies in the US and EU markets, interestingly, where safeguard measures exist for certain types of apparels.

Ever-Glory is relatively of small-scale in terms of revenues but its approach to further penetrate into western markets is a bold strategic move, if it pays off.

Ever-glory depends on a small group of key customers for a significant portion of its sales.

Net sales to its ten largest customers account for 81 percent and 74 percent of total net sales in 2005 and 2004, respectively.

Its single largest customer accounted for approximately 22 percent and 12 percent of its net sales in 2005 and 2004.

The main customers include Itoyokado, Itochu, Uniqlo, Debenhams, Levi Strauss, Guess and Gap and have also recently signed an agreement to supply Abercrombie & Fitch.

Ever-glory's revenues in the three months ended March 31, 2006, came from customers in the EU approximately 58 percent, Japan 7 percent, the United States 26 percent and from China 7 percent.

In this period just three customers represented approximately 63 percent of the company's total sales.

Its first quarter revenues ending March 31, 2006 were US $5.22 million, which was up 272 percent from $1.407 million in 2005.

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